{"title":"Canada's Foreign Direct Investment Challenge: Reducing Barriers and Ensuring a Level Playing Field in the Face of Sovereign Wealth Funds and State-Owned Enterprises","authors":"Matt Krzepkowski, J. Mintz","doi":"10.11575/SPPP.V3I0.42342","DOIUrl":"https://doi.org/10.11575/SPPP.V3I0.42342","url":null,"abstract":"Recent takeovers – and attempted takeovers – of strategic resource companies have renewed concerns that some of Canada’s prized corporate players are falling into foreign hands. However, data shows that Canada has not been a significant attractor of multinational investment, lagging behind a number of developed and developing nations. Indeed, since the mid-1990s, Canada has been a net exporter of capital in world markets, as foreign direct investment by Canadian companies far outpaced the inflow of foreign capital. Rather than being hollowed out, we are hollowing out other countries. As a general policy, Canada should reduce barriers to foreign direct investment and welcome our growing role in international markets. As many studies have shown, foreign direct investment brings significant net benefits to the Canadian economy, including knowledge transfers, new management, better wages and productivity. Only in limited circumstances, such as in the case of protecting Canada’s national security, should Canada block foreign takeovers of Canadian companies. In the interest of neutrality and minimizing economic distortions, takeovers of Canadian companies by foreign sovereign wealth funds or state-owned enterprises should be reviewed on a case-by-case basis. When state-owned enterprises have similar commercial objectives and operate on a level-playing field without financial support by state owners, they could also provide net benefits to the Canadian economy. One important area that requires further consideration is with respect to the tax-exempt status of sovereign wealth funds and state-owned companies. Canadian tax treaties should be reviewed to ensure that Canadian withholding taxes maintain an even playing field among private and state-owned businesses operating in Canada.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115367475","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Can Donors Create Incentives for Results and Flexibility for Fragile States? A Proposal for IDA","authors":"A. Gelb","doi":"10.2139/ssrn.1817832","DOIUrl":"https://doi.org/10.2139/ssrn.1817832","url":null,"abstract":"International Development Association (IDA) donors and others operating a country performance-based allocation system face two difficult problems: how to strengthen incentives to produce and document development results and how to increase flexibility for fragile states. Fragile states have the greatest need for projects, but their projects tend to rate poorly in performance-based allocations systems, which provide little incentive to produce successful projects in fragile states or other countries. [Working Paper No. 227]","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131498277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From the 'Strawberry Jam' to the 'Sushi-Bar': Romanian Migration in the Context of Asia's Increasing Economic Role","authors":"Grigore Silaşi, M. Pirtea, Ovidiu Laurian Simina","doi":"10.2139/ssrn.1616469","DOIUrl":"https://doi.org/10.2139/ssrn.1616469","url":null,"abstract":"The paper analyzes the following points: 1) The increase of Asia’s economical role (consequences of moving the world economic centre from the Atlantic to Pacific; the new centres of power: China and Japan; Asia’s attraction; the new economical configuration, an important migration vector) 2) Romania and the Strawberry Jam. Comparative analysis between countries of destination for Romanian emigration; remittances versus FDI; the influence of the economic crisis on development. 3) Chinese Diaspora in Romania. Romanian migration to Japan. Specificities, trends, development of phenomena. How to create a Romanian Diaspora?","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"352 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124453255","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Trade and Investment Policies and Regional Economic Integration in East Asia","authors":"S. Chia","doi":"10.2139/ssrn.1585674","DOIUrl":"https://doi.org/10.2139/ssrn.1585674","url":null,"abstract":"The global economic crisis has affected the East Asian economies via trade and investment. The export-led model which had been responsible for the “East Asian Miracle†now must redirect the basis of growth from exports sent to the US and Europe to regional and domestic demand. Regional trade integration has been market-led through production networks and foreign direct investment (FDI). Since the proliferation of bilateral and plurilateral free trade agreements (FTA) and economic partnership agreements (EPA) has not resulted in an integrated regional market, it is important that East Asia seek an arrangement for a region-wide FTA/EPA. Currently, there are proposals for an ASEAN+3, an ASEAN+6, Pan-Asia, and Asia Pacific initiatives. While proponents of a region-wide FTA/EPA highlight its benefits, skeptics and critics point to the difficulties of reaching consensus in a region with widely varying political, economic, and social systems. Ultimately it will depend on a political-economic decision based on a cost-benefit analysis of liberalization, facilitation, and cooperation in a region-wide FTA. [ADBI Working Paper No. 210]","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123222320","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Comparative Empirical Examination of Outward Direct Investment from Four Asian Economies: China, Japan, Republic of Korea and Taiwan","authors":"K. Fung, A. Garcia-Herrero, Alan Siu","doi":"10.2139/ssrn.1471776","DOIUrl":"https://doi.org/10.2139/ssrn.1471776","url":null,"abstract":"In this paper we compare and contrast the determinants of outward direct investment from China with those from Japan, South Korea and Taiwan. We examine both descriptively as well as econometrically the various motives and factors behind the investment abroad from these four Asian economies. The hypotheses we are testing include the market-seeking hypothesis, the natural resource-seeking hypothesis, the technology acquisition hypothesis and the human capital hypothesis. We examine outward direct investment for China for the years 1991-2006, Japan for 1983-2007, Korea for 1980-2007 and Taiwan for 1968-2007. Our results using the full set of determinants yield uniform support for the marketseeking hypothesis. The natural resource-seeking motives hold for Japan and Korea, while the technology acquisition hypothesis seems relevant for Taiwan. Chinese investments tend to go to destinations with poorer labor quality. In addition, openness is important for Japanese investment abroad, while distances deter investment from China and Korea.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-07-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121875815","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Collecting the Pieces of the FDI Knowledge Spillovers Puzzle","authors":"R. Smeets","doi":"10.1093/WBRO/LKN003","DOIUrl":"https://doi.org/10.1093/WBRO/LKN003","url":null,"abstract":"Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from Foreign Direct Investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132175307","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Value Chain Analysis of Foreign Direct Investment","authors":"Clàudia Canals, Marta Noguer","doi":"10.2139/ssrn.1018868","DOIUrl":"https://doi.org/10.2139/ssrn.1018868","url":null,"abstract":"This paper analyzes the determinants of FDI. We use a new data set covering greenfield and expansion projects at a detailed value chain level to examine which factors influence the decision to invest abroad. Our empirical framework is an augmented gravity model that incorporates elements of factor proportions theory. At the aggregate level, we find that distance discourages FDI, size and sharing a language encourages it, and that FDI targets relatively capital-scarce countries. When we classify investment projects according to their stage in the chain of production, we observe a lot of variation across stages. Nevertheless, economic size, distance, and capital abundance are still determining factors for most value chain stages and preserve the sign of their effect. Moreover, even though the results confirm FDI targetting capital scarce countries, we find evidence of a minimum requirement on the host country's capital endowment in all the stages of production except extraction. Finally, ease of doing business is also important, especially so for the location of regional headquarters.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133424138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Foreign Direct Investment in the European Community: Some Policy Issues","authors":"D. Neven, Georges Siotis","doi":"10.1093/OXREP/9.2.72","DOIUrl":"https://doi.org/10.1093/OXREP/9.2.72","url":null,"abstract":"This paper analyzes three policy issues associated with foreign direct investment flows in the European Community. First, we find that recent FDI flows raise concerns that the technology of EC firms might be sourced by foreign competitors. Second, we analyze appropriate institutions to settle international conflicts in the control of foreign direct investment, in particular regarding foreign acquisitions. We conclude that if centralization is adequate to deal with external effects within the EC, an agreement on rules to allocate jurisdiction might suffice to deal with potential conflicts with third countries. Finally, we discuss the role of European competition policy in monitoring the intervention of member states towards FDI; we find that current subsidies to attract investment are not excessive in the presence of strong distortions in the labor market. Copyright 1993 by Oxford University Press.(This abstract was borrowed from another version of this item.)","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1993-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124029234","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Much Does Industry Structure Impact Foreign Direct Investment in China?","authors":"Yadong Luo, Justin Tan","doi":"10.2139/ssrn.1554669","DOIUrl":"https://doi.org/10.2139/ssrn.1554669","url":null,"abstract":"Industry structure imperfection in a foreign market is an important factor which not only makes foreign direct investment (FDI) preferable to trade or licensing but also determines the attractiveness of one host country over others. Today, the structural transformation of transitional economies provides transnational investors with tremendous preemptive opportunities. Since the understanding of the linkage between industry structure and FDI in the context of transitional economies is incomplete, this study provides a \"structural attributes\" model and assesses the direction and magnitude of performance implications of industry structural factors for FDI in China. Based on a cross-sectional empirical analysis, this work observes a significant impact of structural factors on market and financial performance in international production. Managerial implications for transnational investors are highlighted.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121564155","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"FDI Trends in 2010-2011 and the Challenge of Investment Policies for Outward Foreign Direct Investment","authors":"Persephone Economou, K. Sauvant","doi":"10.1093/LAW-IIC/9780199983025.016.0001","DOIUrl":"https://doi.org/10.1093/LAW-IIC/9780199983025.016.0001","url":null,"abstract":"This chapter begins with a brief discussion of the latest trends in FDI. It then turns to an analysis of policies related to outward foreign direct investment and discusses issues that relate to them. It argues that FDI flows have managed to sustain their recovery in the aftermath of the 2008 financial crisis, but considerable uncertainty about prospects over the next few years remains. Emerging markets have strengthened their position in the global FDI landscape in terms of both inward and outward investment. Outward FDI policies can play a vital role in creating an environment that allows domestic firms that have the capability to become MNEs to invest overseas and strengthen their competitiveness. The challenge is to ensure that MNE efficiency and competitiveness gains from outward FDI translate into benefits for the home economies.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129798927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}