Chinese and Japanese investment in Southeast and South Asia: case studies of the electronics and automobile industries

Abstract

This article uses extensive fieldwork data to focus on the question of how Chinese and Japanese companies are competing in neighboring countries of Asia, and what economic forces will shape their future growth in the region. It begins by briefly discussing the history of Chinese and Japanese investment in the South and Southeast Asian regions. It traces the development of Japanese overseas investment policies, as well as China's more recent ‘Going Out’ government program to encourage overseas flows of capital. It then builds on prior political economy work as it uses case study focuses, with primary data based on the author's fieldwork research in several nations of Southeast Asia and in India, of the two key sectors of automobiles and electronics. It compares and contrasts the investment strategies of companies from each country, as well as the successes and failures of investments in the industries. It finds that Japanese companies’ advantages lie in industries utilizing advanced technology and management skills. Though the Japanese continue to lead in many areas, including automobiles, they have begun to face competition and potentially reduced profits in vital manufacturing areas. Meanwhile, Chinese overseas companies have made significant advances in the consumer electronics sector, using low prices and good quality, though overseas automobile investments have gained little traction. The article concludes that, if the Chinese can improve their product quality, capitalize on improving managerial skills and a deeper level of experience in the region, and establish brands they can sell with reliable distribution networks, Japanese companies could face losses to their Asian neighbor in these important parts of the continent they have dominated for decades.     

DISCUSSION - Agricultural Policy Reform and Rural Livelihoods in Central Mexico

This contribution examines the impact of profound changes to agricultural policy implemented since 1988 on the livelihoods of Mexico's rural population. Detailed studies in four villages show that rural incomes are very unevenly distributed within communities leaving half of households in poverty. During the last decade key factors affecting village economies have been international and national, rather than specific changes to farm policy. Most changes have been to the detriment of the communities studied, but peasant households have adapted and survived, at a price. If the worst fears about the consequences of economic liberalisation have not been realised, neither have the hopes. Depressed markets for basic goods and services have limited the growth of the rural economy. Private investment and provision of services have not been stimulated.     

Post-socialist China: Labour relations in Korean-managed factories

Abstract

How are labour relations practiced in Korean-managed factories in China? It is often said that labour relations in Korean transnational factories are abusive, even despotic. In this article, I argue that the disciplinary nature of labour relations in Korean factories in China is more complex and so multi-dimensional that they cannot be characterised as a simple economic matter of labour exploitation. These relations entail hierarchical segregation, normalising workers' behaviour through fines and salary reductions, personal degradation and dissimilar cultural practices.     

Innovation and growth in traditional agriculture of the lower Volta,Ghana

This article addresses the important question of whether foreign direct investment enhances economic growth and labour productivity in Mexico, both from a theoretical and empirical perspective. After briefly reviewing the Mexican experience with net FDI inflows during the 1990s, the article presents a simple endogenous growth model which explicitly incorporates any positive (negative) externalities generated by additions to the foreign capital stock. Using cointegration analysis, the article estimates a dynamic labour productivity function for the 1960-95 period that includes the impact of the growth rate in the stocks of both private and foreign capital (as opposed to the flows) and the economically active population (EAP) (rather than the rate of population growth). The error correction model (ECM) estimates suggest that increases in both private ad (lagged) foreign investment spending, as well as the rate of growth in exports, have a positive and economically significant effect on the rate of labour productivity growth. In addition, the results show that increases in the EAP have a negative and statistically significant effect on the rate of labour productivity growth, while changes in the government consumption variable have a negative but marginally significant impact. The error correction terms of the estimated models are negative and statistically significant, thus suggesting that deviations of actual labour productivity growth from its long-run value are corrected in subsequent periods. Finally the article generates historical simulations from the estimated ECM's and offers some policy recommendations to enhance the positive externalities associated with FDI inflows.     

中国企业在发展中国家投资矿业的风险与应对策略

近年来,中国企业对外矿业投资发展迅速。鉴于市场竞争程度、开发成本及自身实力等原因,许多中国企业选择了在发展中国家进行投资。本文对中国企业在发展中国家开发矿产资源过程中的风险和问题进行分析,并提出应对建议。     

China in the context of globalization

Although this paper challenges the standard viewpoint that foreign direct investment actually occurred in colonial times it also finds parallels with today’s international finance. Evidence shows that the reverse flow of funds was infinitely much greater than possible foreign investment for at least one colony, the Netherlands East Indies (colonial Indonesia). We calculate for the late colonial period (1880–1939) out of its total colonial surplus at least US$430 billion in today’s terms (about three-quarters of the total) was available for investment. This was far in excess of actual investment. Less than one-third of the available for investment went to colonial Indonesia and a further one-third was invested in other countries. The remainder is attributed to investment in the Netherlands (mainly portfolio), investment by non-Dutch corporations and to some statistical errors and omissions. Furthermore, we indicate their actual vital function within the global economic and financial organisation of the Netherlands in late colonial times. The probability of similar occurrences today is raised.     

Capturing vote-seeking incentives and the cultivation of a personal and party vote

Electoral rules establish incentives that encourage candidates to strike a particular balance between cultivating their own personal reputations and cultivating shared party reputations. Higher levels of intraparty competition stress the need for an individual reputation and minimize the usefulness of a shared, party reputation. We develop a new indicator of intraparty competition that addresses shortcomings pointed out in previously used indicators. We also identify new, particularly intuitive indicators of ”personal” and ”party” vote seeking. Using within-system and across-system variation in parliamentary elections in Japan, we find that candidate manifestos contain more frequent uses of first-person pronouns and candidate names and fewer references to political parties when intraparty competition is stiffest.     

Factors fostering academics to start up new ventures: an assessment of Italian founders’ incentives

Why do university researchers decide to start-up a new venture? How can we distinguish between the different factors influencing such an important decision? To what extent are specific policies activated within universities relevant in the process of new venture creation? In this paper we try to answer these very significant questions, through an empirical analysis performed on a sample of 88 Italian academics involved in the creation of 47 spin-offs between 1999 and 2005. Our findings show that the availability of technologies with a potential for commercial exploitation, the possibility to access university infrastructures and the personal benefits are the most important incentives for academics. More generally, academics’ involvement in creating new ventures is not driven by an entrepreneurial attitude, but rather by the expectation of generating results which will enhance their academic position. Additional investments and efforts made by some universities to create more mechanisms to support spin-offs are not perceived as additional incentives. These results hold after controlling for academic founders’ institutional affiliation, status, and the companies’ growth over their first two years of existence. Implications for public policy and organizational processes are discussed.     

中国直接投资东盟新四国的区位分析与对策研究

东盟新四国由于有着相似的市场特征与发展共性,适合作为细分后的投资整体区位来研究.通过新近的数据和实证资料,分析东盟新四国直接投资环境的利弊因素以及国企业投资过程中存在的一系列问题,进而提出优化并有效扩大中国企业对东盟新四国直接投资的综合对策.     

FTA战略下我国海外能源投资的法律问题研究——以我国投资澳洲能源为例

解决好海外能源投资中出现的法律问题是我国海外能源投资顺利进行的主要保障。海外能源投资出现的法律问题实质上涉及到资本输出国的相关完善的立法以及对于东道国相关外资法律规定的应对。据此对于如何完善我国资本输出的相关立法以及应对发达的东道国的外资法进行抛砖引玉的研究。