Dissertations / Theses on the topic 'Foreign and employment Investments'

The research explored the long-term relationship between FDI, GDP and host country employment by using sector-wise panel data from 1991 to 2017 in Namibia. The study applied unit root testing and Cointegration test to test for the presence of a cointegration relationship between the variables. Also, a vector autoregression model short-run causality among the variables was examined. In the end, Impulse response functions are estimated. The research found both a short term and long-term causality going from FDI inflow to employment. Impulse responses show that both GDP and employment respond positively to an exogenous shock in FDI inflow. However, the employment response to FDI inflow shock is smaller than that of GDP response. The paper also concludes that FDI has no causal effects on economic growth in Namibia. It means that economic growth is not contributed by the FDI significantly the results in this research have some significant policy implications. Therefore, as the results suggest that the FDI inflow has a positive impact on employment, because of the results, the researcher also recommends that Namibia pursue the policy of attracting foreign firms aggressively and create all the conditions required for attracting foreign direct investment in order to create further employment opportunities.

This research contributes to an understanding of Japanese Foreign Investment (JFDI) in Poland, by using a Variety of Capitalism approach and drawing on literature from employment relations. It examines firstly, the extent to which Japanese production and managerial institutions and practices can be transplanted to different economic and cultural environments; and secondly, the character of workers' response towards these practices, in the context of JFDI in Poland. It draws on primary data drawn from interviews conducted with the managers and workers in five firms in a Japanese electronics manufacturing cluster in Toruń, Northern Poland, as well as the policy makers, researchers and journalists on a regional level. First, the transfer of Japanese management 'style' is considered in terms of recruitment, training practices, issues of monitoring and discipline and quality assurance policies. This study reveals that the transfer of Japanese typical practices is of minor importance to Japanese corporations based in Poland, and the character of these practices in the Polish workplace is peripheral. However, the subordination of labour is brought by the precarisation of employment, rather than the implementation of Japanese quality policies. Second, the focus of the research is on the response of workers and finds that they did not remain passive actors in this process and resisted the adapted form of Japanisation in Poland. Although the role of formal trade unions was limited, the data pointed to other forms of resistance, both conventional and novel, from sabotage, absenteeism, humour to insubordination and the use of blogging sites. In the context of the researched labour process, the empirical findings point to markers of collectivism in all forms of worker resistance and hence identified that the collective worker not only has not disappeared from both the labour process debate and the workplace itself, but, even if not evidently, is present through the resistance to management practices and control.

The recent surge in Chinese Foreign Direct Investments (FDI) in the African continent has brought about much debate and speculation around the potential implications both for the continent as a whole, and for individual African countries. There are mixed sentiments regarding the impact of Chinese FDI in Africa and speculation as to whether the continent has been benefiting more from Chinese investments than it has been losing. Shen (2013) points to two opposing views on China's investment in Africa. On one side China is hailed for bridging the technological and capital gap that has been hampering economic growth in Africa, and for coming to Africa's rescue by being more willing to invest in the continent than the West has been, especially after the financial crisis of 2008. However, the other side sees China as a ruthless investor, intent on plundering the African continent's resources and ultimately taking over its economies (Kolstad & Wiig, 2012). The current research focuses on an area of particular interest and importance for the African continent: specific ways in which Chinese FDI has impacted economic growth and employment in Sub Saharan Africa (SSA). The study employed a panel Autoregressive Distributed Lag model and conducted Granger causality tests on a sample of the top ten SSA recipients of Chinese FDI for the period 2003 to 2017. The results of the analysis revealed that Chinese FDI had a positive effect during this period on both employment and economic growth in Sub-Saharan Africa, with a 1% increase in Chinese FDI resulting in a marginal 0.20% increase in employment, and a 0.17 % increase in economic growth. The findings of the research support the FDI-Led economic growth theory and Robert Solow's neo-classical growth model, which argues that economic growth is achieved through an increase in capital growth, labour force, and technical knowledge (Solow, 1957). Granger causality tests indicated the presence of a bi-directional relationship between Chinese FDI and economic growth. As this was a quantitative study, and significant factors pertaining to Chinese FDI in developing countries in Africa are qualitative in nature, it is recommended that qualitative studies be conducted in order to obtain a more comprehensive picture of the impact of Chinese FDI in African countries.

This thesis analyses what effects foreign direct investments (FDI) has on a firm’s gross profit, wages and labour productivity. Focus is on the Swedish industrial goods and service sector which has shown on a rapid growth of offshore production. We use a theoretical framework with FDI and productivity theories. As a result of cost efficient alternatives to domestic production, a firm’s productivity should fall in the case of increased foreign production. Although, the increase in gross profit should rule out the negative affect that a decrease in productivity cause.

There is a positive relationship between offshore production and gross profits, and expanded foreign production leads to a decreased wage rate. However, increased foreign employment showed a boost the labour productivity, which is wrong from a theoretical point of view.

I den här uppsatsen analyseras hur utländska direktinvesteringar påverkar företags vinster, löner och arbetsproduktivitet. Fokus är ställt på svenska företag inom sektorn industriella varor och tjänster. Den teoretiska delen tar upp utländska direktinvesteringar och arbetsproduktivitet. Som ett resultat av kostnadseffektiva alternativ utomlands, borde arbetsproduktiviteten falla om den utländska produktionen ökar. Den väntade vinstökningen efter utlandslokalisering borde dock ge en generell positiv effekt.

Den empiriska delen visar ett positivt samband mellan utlandslokalisering och vinst. Bevis finnes också för att medellönen sjunker när utlandslokaliseringen ökar. Empiriska resultat visar också att ökad utlandslokalisering ökar arbetsproduktiviteten, vilket ur teoretisk ståndpunkt inte stämmer.

Cette thèse a pour objectif d'analyser et d'identifier les effets des investissements directs étrangers (IDE) sur le marché du travail français. Le premier chapitre dresse un état des lieux de la littérature récente sur cette question. Les autres chapitres analysent empiriquement et théoriquement l'effet des IDE sur le marché du travail. A l'aide de données récentes et détaillées sur les firmes et les employés français, plusieurs aspects du marché du travail sont abordés. Dans un premier temps, la thèse analyse l'effet des IDE sur l'emploi (chapitre 2), puis s'intéresse à leurs effets sur les salaires français (chapitre 3). Le chapitre 4 quant à lui, identifie un canal potentiel par lequel l'IDE affecterait le marché du travail. Ce canal est le changement organisationnel au sein de la maison mère. Enfin, le chapitre 5 identifie les conséquences du changement organisationnel en terme de mobilité de la main d’œuvre au sein des firmes multinationales. Les résultats montrent un effet sélectif de l'IDE sur l'emploi et les salaires. Seuls les IDE vers un pays à bas salaires affectent le marché du travail et seuls les cadres sont impactés positivement par les stratégies d'implantation à l'étranger des firmes. L'emploi semble être la variable d'ajustement en marge extensive, alors que les salaires s'ajustent en marge intensive. Les IDE sont également responsables d'un changement organisationnel au sein de la maison-mère, provoquant d'une part, un déplacement de l'autorité du chef d'entreprise vers les cadres et d'autre part, une augmentation de la mobilité des travailleurs qualifiés au sein de la firme
This thesis aims to analyze and identify the effects of outward foreign direct investment (FDI) on the French labor market. The first chapter provides an overview of the recent literature on this topic. The other chapters of the thesis analyze empirically and theoretically the effect of FDI on the labor market. Thank to recent and detailed data on French firms and employees, the thesis looks at several aspects of the labor market. First, the study starts by analyzing the effect of FDI on employment (chapter 2) and then looks at the effects on French hourly gross wages (chapter 3). Chapter 4 identifies one possible channel through which FDI affects the labor market, which is organizational change. Finally, Chapter 5 identifies the impact of organizational change on labor mobility within multinational companies. The results show a selective effect of FDI on employment and wages. Only FDI to low-wage countries affect the labor market and only managers' employment is positively affected by offshoring strategies of their firm. Results also show that employment is the main adjustment variable at the extensive margin, while wage is the main adjustment variable at the intensive margin. Results of chapter 4 and 5 highlight the role of FDI on organizational change within the mother company, which is materialized on the one hand, by a decentralization of authority from the CEO to managers and, on the other hand, by an increase of inhouse labor-mobility of skilled workers

Foreign direct investments are easier today then in the past owing to lower communication costs, improved and new information technology systems. In 1990, Brazil opened up for the global econ-omy and is today one of the tenth largest economies in the world, furthermore one of the largest recipients of foreign direct investments. Many different aspects need to be taken into consideration when investing in a foreign country such as motives, risks, entry modes and financing alternatives.

The purpose with this thesis is to describe Swedish corporations’ es-tablishment in Brazil, during 1990-2005. The authors aim to illus-trate the motives behind the establishment, choice of entry mode, the perceived risks of operating in Brazil and if these risks affect the financing decisions.

To answer the purpose of this thesis both quantitative- and qualitative methods have been applied. A quantitative method has been employed when performing the preliminary study, by sending a standardized questionnaire by email to the entire population to as-semble those corporations who established in Brazil during 1990-2005. When designing the interview questionnaire and accomplishing the telephone interviews a combination of qualitative- and quantitative methods have been utilized.

The most common motives to invest in Brazil are expanding markets and following already existing customers. When deciding upon how to enter the market, the majority of the respondents choose to start up from the ground, a Greenfield investment. The risks which had the largest impact of the corporation during the establishment were the political risk and protectionism. Intercompany financing has been the main financing alternative, though it is very expensive to borrow in Brazil. The risks affecting the financing decisions are the exchange rate, inflation and the interest rate.

Thesis (Ph. D.)--University of Oregon, 2003.
Typescript. Includes vita and abstract. Includes bibliographical references (leaves 63-67). Also available for download via the World Wide Web; free to University of Oregon users.

This thesis examines the levels of restrictive foreign investment regulatory policies of Malaysia, Thailand and Singapore from 1970 to 1980. The study seeks to explain why their policies varied. It presents a descriptive comparison of each country's policies restricting foreign investment. This discussion deals with general quantitative limits on foreign ownership, restrictions on certain economic sectors, restrictions on the operations of foreign-owned corporations, and the use of government-owned corporations as instruments of control over foreign investment. Based on the comparison, the study concludes that Malaysia placed greater restrictions on foreign investment than Thailand or Singapore. It is argued that differences in the domestic political and economic settings of Malaysia, Thailand and Singapore explain Malaysia's greater restrictiveness. The thesis examines each state's past experience with a colonial power, economic strategies of the political elites, domestic political pressures, and the presence of ethnic minorities. It also looks at such contributing factors as the size of the natural resource sector, the prevalence of industries with old technology, and the level of foreign ownership of industry in each country. This thesis concludes that Malaysia placed more restrictions than Thailand or Singapore because it had a very different domestic setting: an economically-dominant ethnic minority, domestic pressure for restrictions, and a nationalistic and interventionist economic strategy. Taken together, these differences explain Malaysia's greater restrictions on foreign investment. Of the explanatory variables, ethnic factors are the most important.
Arts, Faculty of
Political Science, Department of
Graduate

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ApexBrasil - Agência Brasileira de Promoção de Exportações e Investimentos
Esta dissertação objetiva analisar comparativamente a evolução dos fluxos de investimento externo direto na economia mundial e brasileira no período entre 1994 e 2011. A metodologia é baseada na estatística descritiva utilizando a correlação de Pearson e dados secundários relacionados com os fluxos de investimento externo direto, estoque, além da origem dos investimentos (países) e discriminação das atividades receptoras de investimento. Examinaram-se inicialmente os fluxos mundiais e constatou-se que os mesmos têm aumentando, atingindo US$ 1,5 trilhões em 2011. Os fluxos também têm se direcionado para os países em desenvolvimento que apresentaram aumento de 12% em 2011 com relação ao ano anterior. Com relação à origem dos investimentos diretos externos, os países que mais investiram no mundo foram por região, Portugal, Estados Unidos, Japão e Nova Zelândia. As atividades da economia que mais receberam investimento externo direto mundial, foram indústria e serviços, com destaque para a indústria química e serviços de utilidade pública. No caso brasileiro, os países que mais investiram foram os Países Baixos, seguido dos EUA e Espanha. Nas atividades econômicas, o Brasil recebeu maiores investimentos no setor de serviços em 2011, com destaque para os serviços financeiros. O impacto na balança comercial e emprego foram positivos, todavia, com taxas de crescimento bem distintas. No caso do investimento brasileiro no exterior, os fluxos se direcionaram em sua maioria para os Países Baixos, e as atividades econômicas mais investidas no mundo pelas multinacionais brasileiras foram petróleo e gás natural e extração de minerais metálicos, metalúrgica e serviços financeiros. Com a análise da correlação entre os fluxos de investimento direto e o PIB, taxa de câmbio, taxa de inflação, taxa de juros e taxa de desemprego, concluiu-se que o produto interno bruto está positivamente relacionado com os fluxos de investimento direto com intensidade alta; a relação com a taxa de câmbio se mostrou positiva em alguns anos e negativa em outros; a taxa de inflação, a taxa de juros e a taxa de desemprego se mostraram negativamente relacionadas com os fluxos, confirmando a teoria.
This dissertation aims to comparatively analyze the evolution of FDI flows in the world economy and Brazil between 1994 and 2011. The methodology is based on descriptive statistics and analysis of secondary data related to flows of foreign direct investment, stock, beyond the origin of investments (countries) and discrimination against recipients of investment activities. Were examined initially global flows and found that they are increasing, reaching $ 1.5 trillion in 2011. The flows have also been directed to developing countries which showed an increase of 12% in 2011 compared with the previous year. Regarding the origin of foreign direct investment, countries that have invested most in the world by region, Portugal, United States, Japan and New Zealand. The activities of the economy that received more foreign direct investment worldwide, were industry and services, with emphasis on the chemical industry and utilities. In Brazil, the countries that invested were the Netherlands, followed by the USA and Spain. In economic activities, the country received more investment in the service sector in 2011, with emphasis on financial services. The impact on the trade balance and employment were positive, however, with very different growth rates. In the case of Brazilian investment abroad, the flow is directed mostly to the Netherlands, and economic activities more invested in the world by Brazilian multinationals were oil and natural gas extraction and metal ore, metallurgical and financial services. With the analysis of the correlation between flows of direct investment and GDP, exchange rate, inflation rate, interest rate and unemployment rate, it was concluded that the gross domestic product is positively related to direct investment flows with high intensity , the relationship with the exchange rate was positive in some years and negative in others, the rate of inflation, the interest rate and the unemployment rate showed negatively related flows, confirming the theory.

L’objectif de cette thèse est d’explorer l’impact de l’incertitude sur les IDE. Elle s’intéresse plus particulièrement à l’industrie agroalimentaire en tenant compte des spécificités de la chaîne de valeur agricole. Les flux et les stocks d’IDE sont généralement très instables et il est admis que l’incertitude est le principal facteur causant les baisses fréquentes de l’IDE au niveau mondial. Nous voulons savoir si et dans quelle mesure l’incertitude causée par la volatilité de la demande et de l’offre peut affecter les IDE dans l’industrie agroalimentaire. À cette fin, nous utilisons des modèles théoriques et empiriques. Dans le premier chapitre, nous étudions empiriquement la mesure dans laquelle l’incertitude provenant des variabilités de la demande du marché, de la production et du commerce peut expliquer la probabilité d’avoir des IDE dans l’industrie agroalimentaire. On s’attend à ce que les IDE soient retardés lorsque l’incertitude augmente car les entreprises qui font ces investissements mobilisent des ressources conséquentes pour réaliser leurs IDE. Nous utilisons un modèle d’analyse de survie et des données d’IDE bilateraux. Cela nous permet de constater que la volatilité réduit la probabilité d’observer l’IDE entre les pays. Ce comportement est observé dans l’industrie agroalimentaire mais aussi dans d’autres industries. Cependant, toutes les sources de variabilité ne jouent pas nécessairement un rôle. Par exemple, les IDE des entreprises multinationales européennes et américaines dans l’industrie alimentaire sont négativement affectés par la volatilité des importations du pays de destination. Les IDE de ces pays dans l’industrie des produits chimiques sont négativement affectés par la volatilité de la production. La volatilité des exportations diminue l’attrait de capitaux étrangers dans le secteur des équipements de transport des pays d’accueil. Dans le second chapitre, nous construisons un modèle théorique pour expliquer le compromis entre les exportations et les IDE compte tenu de l’incertitude quant à la taille de la demande. Nous observons que l’incertitude de la demande induit un comportement d’attente des entreprises multinationales qui explique pourquoi les IDE peuvent être retardés dans les marchés où l’incertitude est grande. L’IDE devient une option réelle dans laquelle l’attente permet de réduire l’incertitude. Nous adoptons la littérature sur l’analyse des options réelles pour construire notre cadre théorique. En plus de l’incertitude de la demande, nous examinons également des facteurs comme les coûts au commerce et l’environnement de la concurrence. Nous observons qu’une forte concurrence, une faible différenciation des produits et une diminution des barrières commerciales amplifient le comportement d’attente des multinationales. Par exemple, la réduction des coûts au commerce peut nuire aux IDE, car elle augmente leur sensibilité à l’incertitude et l’attente devient une option plus intéressante. Dans le dernier chapitre, nous analysons les IDE dans l’industrie agroalimentaire en tenant compte des différences de volatilité dans l’offre agricole entre les pays. Cette analyse nous permet d’étudier la question de l’incertitude dans l’industrie agroalimentaire du point de vue de la chaîne d’approvisionnement, car nous considérons l’incertitude dans le secteur en amont. En fait, les variations des prix agricoles ou des quantités livrées aux transformateurs par les agriculteurs sont souvent importantes et imprévisibles. Par conséquent, ces transformateurs de l’industrie agroalimentaire sont exposées à une incertitude croissante et persistante. Notre cadre théorique tient compte du pouvoir de marché des entreprises de transformation et des IDE de type horizontaux et verticaux. Nous obtenons que même les entreprises neutres au risque sont préoccupées par la variabilité de l’offre. En effet, dans le contexte de l’industrie alimentaire, la relation entre le profit et le choc d’offre est concave étant donné la concurrence imparfaite et le moment de la résolution de l’incertitude. Notre approche empirique confirme que les entreprises multinationales réalisent leurs décisions en matière d’IDE en considérant les disparités de variabilité de l’offre entre les pays parce que la volatilité du secteur agricole dissuade les IDE. Nous testons cette prédiction à l’aide de données bilatérales de stocks d’IDE dans l’industrie agroalimentaire.
L’objectif de cette thèse est d’explorer l’impact de l’incertitude sur les IDE. Elle s’intéresse plus particulièrement à l’industrie agroalimentaire en tenant compte des spécificités de la chaîne de valeur agricole. Les flux et les stocks d’IDE sont généralement très instables et il est admis que l’incertitude est le principal facteur causant les baisses fréquentes de l’IDE au niveau mondial. Nous voulons savoir si et dans quelle mesure l’incertitude causée par la volatilité de la demande et de l’offre peut affecter les IDE dans l’industrie agroalimentaire. À cette fin, nous utilisons des modèles théoriques et empiriques. Dans le premier chapitre, nous étudions empiriquement la mesure dans laquelle l’incertitude provenant des variabilités de la demande du marché, de la production et du commerce peut expliquer la probabilité d’avoir des IDE dans l’industrie agroalimentaire. On s’attend à ce que les IDE soient retardés lorsque l’incertitude augmente car les entreprises qui font ces investissements mobilisent des ressources conséquentes pour réaliser leurs IDE. Nous utilisons un modèle d’analyse de survie et des données d’IDE bilateraux. Cela nous permet de constater que la volatilité réduit la probabilité d’observer l’IDE entre les pays. Ce comportement est observé dans l’industrie agroalimentaire mais aussi dans d’autres industries. Cependant, toutes les sources de variabilité ne jouent pas nécessairement un rôle. Par exemple, les IDE des entreprises multinationales européennes et américaines dans l’industrie alimentaire sont négativement affectés par la volatilité des importations du pays de destination. Les IDE de ces pays dans l’industrie des produits chimiques sont négativement affectés par la volatilité de la production. La volatilité des exportations diminue l’attrait de capitaux étrangers dans le secteur des équipements de transport des pays d’accueil. Dans le second chapitre, nous construisons un modèle théorique pour expliquer le compromis entre les exportations et les IDE compte tenu de l’incertitude quant à la taille de la demande. Nous observons que l’incertitude de la demande induit un comportement d’attente des entreprises multinationales qui explique pourquoi les IDE peuvent être retardés dans les marchés où l’incertitude est grande. L’IDE devient une option réelle dans laquelle l’attente permet de réduire l’incertitude. Nous adoptons la littérature sur l’analyse des options réelles pour construire notre cadre théorique. En plus de l’incertitude de la demande, nous examinons également des facteurs comme les coûts au commerce et l’environnement de la concurrence. Nous observons qu’une forte concurrence, une faible différenciation des produits et une diminution des barrières commerciales amplifient le comportement d’attente des multinationales. Par exemple, la réduction des coûts au commerce peut nuire aux IDE, car elle augmente leur sensibilité à l’incertitude et l’attente devient une option plus intéressante. Dans le dernier chapitre, nous analysons les IDE dans l’industrie agroalimentaire en tenant compte des différences de volatilité dans l’offre agricole entre les pays. Cette analyse nous permet d’étudier la question de l’incertitude dans l’industrie agroalimentaire du point de vue de la chaîne d’approvisionnement, car nous considérons l’incertitude dans le secteur en amont. En fait, les variations des prix agricoles ou des quantités livrées aux transformateurs par les agriculteurs sont souvent importantes et imprévisibles. Par conséquent, ces transformateurs de l’industrie agroalimentaire sont exposées à une incertitude croissante et persistante. Notre cadre théorique tient compte du pouvoir de marché des entreprises de transformation et des IDE de type horizontaux et verticaux. Nous obtenons que même les entreprises neutres au risque sont préoccupées par la variabilité de l’offre. En effet, dans le contexte de l’industrie alimentaire, la relation entre le profit et le choc d’offre est concave étant donné la concurrence imparfaite et le moment de la résolution de l’incertitude. Notre approche empirique confirme que les entreprises multinationales réalisent leurs décisions en matière d’IDE en considérant les disparités de variabilité de l’offre entre les pays parce que la volatilité du secteur agricole dissuade les IDE. Nous testons cette prédiction à l’aide de données bilatérales de stocks d’IDE dans l’industrie agroalimentaire.
The three essays of this thesis explore the impact of uncertainty on FDI in the food industry by taking into account the specificities of the food value chain. FDI flows and stocks are very unstable and evidence suggests that uncertainty is the main factor causing frequent declines in FDI globally. We want to know whether and to what extent the uncertainty caused by the volatility of demand and supply affects FDI in the food processing industry by using theoretical and empirical models. The first essay empirically studies whether uncertainty related to variables such as volatile market demand, production variability and trade volatility affects the hazard rate of FDI in the food industry. As FDI is irreversible investment, it is likely to be delayed when uncertainty increases. Using a survival analysis model and bilateral FDI data, we find that volatility reduces the hazard rate of FDI. This behavior is observed in the food industry but also in other industries. However, not all sources of variability are relevant. For example, FDI by European and US multinational companies in the food industry is negatively affected by the import volatility of the country of destination. FDI of these countries in the chemical industry is negatively affected by the volatility of production. Export volatility plays a role in attracting foreign capitals in the transport equipment sector of host countries. The second essay provides a theoretical model to explain the choice between export and FDI given the uncertainty about the size of demand. The fact that FDI is delayed when uncertainty increases is explained by the wait-and-see behavior of multinational companies when investing in very uncertain foreign markets. FDI decisions can be considered as real options in which the decision to invest can be postponed to reduce uncertainty. We build a model that relies on the literature of real options. In addition to the uncertainty of demand, we also examine factors such as trade costs and the competitive environment. We find that intense competition, low product differentiation and reduction of trade barriers amplify the wait-and-see behavior of multinational firms. For example, trade liberalization can be harmful for FDI, as it increases the sensitivity of FDI to uncertainty and waiting becomes a more valuable option. In the last essay, we analyze FDI in the food processing industry, given the differences in the volatility of agricultural supply between countries. This analysis allow us to examine the issue of uncertainty in the food processing industry from a supply chain perspective, as we consider uncertainty in the upstream sector. In fact, variations of farm prices or of quantity delivered to processors by farmers are problematic as they are large and unpredictable. Consequently, food processing firms, as they use massively primary agricultural commodities as ingredients, are exposed to an increasing and persistent uncertainty. Our theoretical framework takes into account the market power of processors and horizontal and vertical FDI are discussed. We find that even risk-neutral companies are concerned by the variance of supply. Indeed, in the context of the food industry, the relationship between profit and supply shock is concave given imperfect competition and the timing of the resolution of uncertainty. Our empirical approach (a gravity model) confirms that multinational firms achieve their FDI decisions by considering the difference of supply shocks between countries as the volatility of the agricultural sector deters FDI.We test this prediction using bilateral FDI stocks data in the food processing industry.
The three essays of this thesis explore the impact of uncertainty on FDI in the food industry by taking into account the specificities of the food value chain. FDI flows and stocks are very unstable and evidence suggests that uncertainty is the main factor causing frequent declines in FDI globally. We want to know whether and to what extent the uncertainty caused by the volatility of demand and supply affects FDI in the food processing industry by using theoretical and empirical models. The first essay empirically studies whether uncertainty related to variables such as volatile market demand, production variability and trade volatility affects the hazard rate of FDI in the food industry. As FDI is irreversible investment, it is likely to be delayed when uncertainty increases. Using a survival analysis model and bilateral FDI data, we find that volatility reduces the hazard rate of FDI. This behavior is observed in the food industry but also in other industries. However, not all sources of variability are relevant. For example, FDI by European and US multinational companies in the food industry is negatively affected by the import volatility of the country of destination. FDI of these countries in the chemical industry is negatively affected by the volatility of production. Export volatility plays a role in attracting foreign capitals in the transport equipment sector of host countries. The second essay provides a theoretical model to explain the choice between export and FDI given the uncertainty about the size of demand. The fact that FDI is delayed when uncertainty increases is explained by the wait-and-see behavior of multinational companies when investing in very uncertain foreign markets. FDI decisions can be considered as real options in which the decision to invest can be postponed to reduce uncertainty. We build a model that relies on the literature of real options. In addition to the uncertainty of demand, we also examine factors such as trade costs and the competitive environment. We find that intense competition, low product differentiation and reduction of trade barriers amplify the wait-and-see behavior of multinational firms. For example, trade liberalization can be harmful for FDI, as it increases the sensitivity of FDI to uncertainty and waiting becomes a more valuable option. In the last essay, we analyze FDI in the food processing industry, given the differences in the volatility of agricultural supply between countries. This analysis allow us to examine the issue of uncertainty in the food processing industry from a supply chain perspective, as we consider uncertainty in the upstream sector. In fact, variations of farm prices or of quantity delivered to processors by farmers are problematic as they are large and unpredictable. Consequently, food processing firms, as they use massively primary agricultural commodities as ingredients, are exposed to an increasing and persistent uncertainty. Our theoretical framework takes into account the market power of processors and horizontal and vertical FDI are discussed. We find that even risk-neutral companies are concerned by the variance of supply. Indeed, in the context of the food industry, the relationship between profit and supply shock is concave given imperfect competition and the timing of the resolution of uncertainty. Our empirical approach (a gravity model) confirms that multinational firms achieve their FDI decisions by considering the difference of supply shocks between countries as the volatility of the agricultural sector deters FDI.We test this prediction using bilateral FDI stocks data in the food processing industry.

In capital-scarce low income economies, FDI is seen as a stable and important source of financing for developing economies. FDI is therefore expected to generate effects on the country's economic growth potential. However, despite the long history of FDI, it was only after 1990 that Sub-Saharan African countries experienced vast increase in FDI inflows into the region. Evidence of effectiveness of such flows has remained debateable, particularly with the dominance of cross-country studies in such enquiry. With yet no existing country study for Namibia, this research investigates the relationship between FDI and economic growth in the country and the determinants of FDI flows to Namibia. The methodologies adopted in this study are mainly based on co-integration analysis. In order to investigate the impact of FDI on economic growth we employ co-integration tests and estimate both long-run effects and short-run dynamics using the autoregressive distributed lag (ARDL) model. The study also extends co-integration testing by applying the asymmetric (ARDL) model to test for asymmetry. The standard co-integration tests are also appropriately used to investigate the macroeconomic determinants of FDI flows to Namibia. Appropriate econometric procedure has also been employed to examine the sector level FDI and economic growth using a dynamic ordinary least squares (DOLS) model and mean-group (MG) estimation, to consider for the assumptions of both a homogeneity and heterogeneity case across units. Arising from a pluralistic analytical framework involving a triangulation of econometric estimation approaches, the study finds that FDI in Namibia is significant in promoting economic growth in the country. In terms of the impact on growth, the results show a positive relationship between FDI and economic growth. They also indicate that FDI consistently exerts a positive impact on growth when we incorporate trade openness, inflation and gross fixed capital formation in the analysis. This proves that these variables are indeed important in explaining economic growth in the long-run in the country and its development. With respect to the analysis, the study extended upon the linear framework to allow for the detection of asymmetric effects both in the short and long-run, as not to limit the study to the assumption of a linear paradigm only. The results show no evidence of asymmetric pattern in the relationship between FDI and economic growth. Meaning, the responsiveness of economic growth to FDI flow variations is linear. In terms of the macroeconomic determinant of FDI in Namibia the study finds that the potential market size, interest rates, initial level of income, labour force, the provision of infrastructural facilities and inflation are important determinants of FDI into the country. Although openness is found to be positive it is insignificant in determining FDI to Namibia. This could possibly act as a deterrent and as such the institutional set up's for the export and investment promotion services need a criterion for a successful export and investment support function in order to increase FDI inflows into the country and remove such factors that could inhibit such flows. In terms of sector specific FDI and economic growth the results show a co-integrating relationship. Therefore, there is long run relationship in conformity with the study hypothesis. Accounting for causality the study finds feedback effects between FDI and economic growth both in the short and long-run. Furthermore, the study also finds that FDI to Namibia is not only resource seeking but that Namibia has seen an increase in market-seeking and efficiency seeking foreign investors. As such, differentiated efforts towards attracting different forms of FDI flows to varied sectors are crucial if the economic significance of FDI is to be improved in Namibia.

Includes bibliographical references.
Foreign investment is one of the key elements of economic development in Nigeria. Yet the process of regulating it is challenging and problematic, particularly in the northern parts of Nigeria where people prefer informal investments and tend to ignore the necessary laws governing investments. Today in Nigeria as in most African countries, there are many investors, most of them from Asia, who are very insensitive to the rule of law. They invest and carry out business in Nigeria and particularly northern Nigeria often in breach of investment laws. Nigerian investment regulatory laws were made to provide security and protection of investors’ interests, but these laws are ignored due to their technicality. There is no doubt that the regulatory environment for investment will work better and more securely when there is a system of compliance. The dissertation will focus on the theoretical and practical analysis of investment security laws in Nigeria, and not the root of investment as a concept itself which is beyond the scope of this work.

Thesis (Ph.D.)--George Mason University, 2008.
Vita: p. 159. Thesis director: Carlos Ramírez. Submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Economics. Title from PDF t.p. (viewed July 3, 2008). Includes bibliographical references (p. 151-158). Also issued in print.

This thesis includes two chapters investigating issues related to Foreign Direct Investment (FDI). In the first chapter, I exploit one of the most important conflicts of the 20th century between what are currently the world's second and third largest economies, the Japanese invasion of China from 1937 to 1945, to investigate the long-run impact of conflicts among countries on cross-border trade and investment. I find that Japanese multinationals are less likely to invest in Chinese regions that suffered greater civilian casualties during the Japanese invasion, and these regions also trade less with Japan. This study shows that historical animosity still matters for international trade and investment, despite the trend toward a flat world. In the second chapter, by using an extensive data set on foreign invested enterprises (FIEs) in the Chinese mainland, I employ discrete choice model developed by McFadden (1974) to examine the factors determining the locational choices of FDI. Our empirical analysis shows that FIEs from source countries that are more remote institutionally from the Chinese mainland exhibit a higher degree of sensitivity toward regional economic institutions in their choice of FDI location. Interestingly, we also detect a pattern of asymmetric sensitivity toward institutional quality, i.e., FIEs coming from countries with better institutions than China are more sensitive to institutional difference and there is no effect of institutional difference on FIEs from countries with worse institutions than China. Institutional distance could also cast differentiated impacts on location choice by Joint Ventures (JVs) and Wholly-owned Enterprises (WOEs), FIEs coming from the source countries with high proportion of ethnic Chinese and FIEs coming from source countries with low proportion of ethnic Chinese in their overall populations.
published_or_final_version
Business
Doctoral
Doctor of Philosophy

Thesis (Ph. D.)--University of Oregon, 2003.
Typescript. Includes vita and abstract. Includes bibliographical references (leaves 85-88). Also available for download via the World Wide Web; free to University of Oregon users.

Thesis (Ph. D.)--University of Oregon, 2007.
Typescript. Includes vita and abstract. Includes bibliographical references (leaves 104-108). Also available for download via the World Wide Web; free to University of Oregon users.

Thesis (Ph. D.)--University of California, San Diego, 2007.
Title from first page of PDF file (viewed August 7, 2007). Available via ProQuest Digital Dissertations. Vita. Includes bibliographical references (p. 203-220).

The recent developments in the European Community evoked by the Single European Act and commonly referred to as the creation of "Fortress Europe" by the end of 1992 have been attracted considerable attention with respect to economic and political integration in the international arena. Similarly, the conclusion of the U.S.-Canada Free Trade Agreement aiming at a loose form of economic integration received significant recognition. These two agreements cover not only liberalization of trade in goods and services but moreover, include foreign direct investment. This is of particular significance since little progress has been made in its regulation on an international level in comparison to the regulation of trade in goods. Due to the fact that direct investment is primarily exercised by large multinational enterprises it has a larger political impact on the host countries than trade in goods and services. Foreign ownership of local industry creates the concern of economic dependence and of a loss of sovereign powers among host governments. Consequently, governments introduce laws and regulations aiming at the restriction of direct investment of foreign investors. However, as foreign investment augments economic growth, it is of common benefit to both investors and host countries to provide an investment climate which balances the conflict of interest between the need of legal certainty and flexibility for foreign investors arid the safeguard of economic independence and political freedom of host country governments to introduce and maintain measures deemed necessary for the benefit of their national economies. This thesis will demonstrate the most effective regime to solve this conflict through comparison of the Free Trade Agreement with the Treaty of Rome as amended by the Single European Act. These agreements have been chosen since they involve two of the triad world economic powers and thus, represent industrialized nations with the highest degree of foreign direct investment aiming at the liberalization of direct investment in their "enlarged" markets. The thesis is divided into three parts. The first and second parts will discuss the degree of liberalization of foreign investment within the Common Market including the progress made under the Single European Act of 1986 and within the free trade area established by the U.S.-Canada Free Trade Agreement in 1989. The analysis will centre around the issues of free establishment of companies, the National Treatment Principle, capital movement, and mergers and acquisitions. The third part consists of the comparative analysis and will provide the final conclusions. The conclusions will show that the two agreements share few similarities but they are characterized by their divergent approach to direct investment liberalization. It is submitted that the more comprehensive form of liberalization is reached in the Common Market due to its broad restraint on sovereign powers of its Member States and coherently implemented elimination of restrictions on foreign investment. In contrast, the Free Trade Agreement only imposes selected obligations on the parties to liberalize direct investment. It will become clear that the Free Trade Agreement stands for a settlement of the most vexing investment issues between the parties rather than a commitment to virtually liberalize investment between the U.S. and Canada. In view of this result, recommendations are made to further liberalize investment under the Free Trade Agreement. These have to be seen, however, in the light of numerous economic and political divergencies between the Common Market and the U.S.- Canadian free trade area.
Law, Peter A. Allard School of
Graduate

Thesis (Ph. D.)--University of Oregon, 2002.
Typescript. Includes vita and abstract. Includes bibliographical references (leaves 94-97). Also available for download via the World Wide Web; free to University of Oregon users.

In this dissertation, we use unique data set to examine bilateral Foreign Direct Investments (FDI) data and find determinant factors of bilateral FDI activities. In Chapter 1, we examine the relationships among the bilateral annual non-aggregated national level FDI, all levels of Economic Integration Agreements (EIAs) and political turnovers happened in both FDI exporting countries and FDI importing countries. In Chapter 2, we test the Tariff-Jumping FDI hypothesis and Export-Oriented FDI hypothesis. In Chapter 3, we examine and determine the key determinant factors of Cross-Hauling FDI status.