Search

This article concerns the determinants of foreign direct investment (FDI) outflow from India to Poland with some insights to other European countries. This topic strongly relates to globalization of foreign trade and especially new economic initiatives between European Union (EU) and India, which was one of the first countries to develop trade relations with EU. According to CEIC data – Financial Data and Economic Indicators, India’s FDI outflow increased slightly to 1.4 billion USD in September 2019 in comparison with 996.5 million USD in September 2018, but it is still below the average of 1.8 billion USD for a period of 2007–2019. Available at: https://www.ceicdata.com/en/india/foreign-direct-investment-outflow/foreign-direct-investment-outflow (accessed October 19, 2019). Very limited number of the scientific research can be found in European literature about India’s FDI outflow to EU countries in period of 2004–2019. Indian economists made some research on that topic. Professor J. Ramachandran (listed among the Best Management Thinkers for the year 2015, the first Bain Fellow in India) from Indian Institute of Management Bangalore in 2004 and Professor Jaya Prakesh Pradhan from Central University of Gujarat in 2008 explored the evolution in Indian outward FDI, referring to a shift in the pattern of overseas expansion and basis of competitiveness of Indian companies. The main goal of this article is to explain what really triggers Indian investors to go to Poland and what kind of businesses they form. Some examples of the Indian-based companies are mentioned to support the analysis. The author of this article also researched on different governmental bilateral trade agreements and initiatives, trying to find any direct impacts of that on the India FDI outflow to Poland and other EU countries. He used empirical method of the analysis based on accessible data for period 2004–2019 and literature in that topic and also direct interviews with private Indian investors who made decision to start and run their business in Poland or other EU countries. The main conclusion is that Poland the leader of Visegrad Group is an interesting investment for India and India can be for Poland a counterpart investment partner to China.

Entry in a homogeneous Cournot-oligopoly is excessive if and only if there is business-stealing (Amir et al., 2014). The excessive entry prediction has been derived primarily for closed economies and using a welfarist benchmark. We extend this framework and allow for (1) horizontal FDI in a multi-period setting and (2) interest group-based government behaviour. Opening the market to greenfield investments from abroad tends to aggravate the entry distortion. Moreover, market opening may reduce welfare if a more pronounced entry distortion dominates the gain in consumer surplus. Finally, a government, which places sufficiently little weight on the interests of consumers, will object to market opening, even if welfare rises., Highlights • Entry in a homogeneous Cournot-oligopoly is excessive if there is business-stealing. • Allowing for horizontal FDI aggravates the excess entry problem. • Nonetheless welfare rises in market equilibrium, but may fall if entry is restricted. • A government maximising a political support function may restrict FDI.

This study examines the determinants of inward foreign direct investment to OECD countries. The focus is on horizontal FDI. The purpose of the research is to contribute to the ongoing research, and adding value. This is done by using a dynamic perspective of time, and controlling for country-specific characteristics. The thesis uses panel data covering all 36 OECD countries over a 23 year long time period, 1995-2017. Three regressions have been done using a linear fixed effects model, as well as four addition regressions testing the robustness of the results. Earlier studies have received spread results, as have this study. It found market size, economic stability, trade openness, and currency value as significant determinants of the inward flow of FDI to OECD countries.

In literature it has been stated that in times of low capital barriers policies can impact real exchange rates (RERs) and, it has been shown that RERs influence foreign direct investment (FDI). As inward FDI is a growth stimulating factor for the German economy and as more than a third of inward FDI stems from countries in the European Union (EU), this study investigates the RER-FDI link between Germany and seven EU countries. The impact of bilateral RERs between Germany and seven EU countries on German net FDI inflows is examined for the period 1974-2018. Further, it is investigated how the euro introduction in 1999 affected the RER-FDI links. Using Ordinary Least Squares models it is found that in the pre-euro period a real German currency appreciation led to decreases in net FDI from most economies in scope. This negative RER-FDI link endures for the non-euro countries Sweden, Denmark, and the United Kingdom after the euro introduction. France, Italy, and Spain, euro countries, are subject to the euro-effect: the negative RER-FDI link changes to a positive link with the euro introduction. This phenomenon indicates an altering investment behavior. The results are strengthened by a panel estimation as robustness check. As the euro-effect was not discovered in previous studies nor is a theory established explaining the altering investment behavior of euro firms, this thesis suggests an alternative explanation.

(ProQuest: ... denotes formulae omitted.)1. IntroductionSince World War II, the world economy has steadily pursued trade liberalization through regional trade agreements (RTAs) to improve economic welfare. RTAs have continued to increase at an annual rate of 16% since 1992, and up to the present, the number of RTAs in force that were notified to the WTO is around 260. In particular, free trade agreements (FTAs), the lowest level of RTAs, account for 90% in the total number RTAs.1Korea has actively expanded its FTA network since the Korea-Chile FTA in 2004. As of 2012, Korea has FTAs with 45 trading partners, including the world's top three economic blocs: the U.S., EU, and ASEAN plus India (see Table 1).Meanwhile, foreign direct investment (FDI) has also increased over the past two decades in the world. The World Investment Report 2010 published in the United Nations (UN)2 shows that the number of multinational enterprises (MNEs) has more than doubled to 103,786 in 2010 from about 40,000 in 1993. Accordingly, the number of foreign affiliates has increased to 892,114 in 2010 from about 270,000 in 1993.A steady rise in Korea's FDI reflects this global trend. In particular, since 2000, outward and inward FDI in Korea has grown dramatically (see Table 2). The amount of outward FDI from Korea has increased by 10 fold over the past 10 years, increasing from $26 million in 2000 to $255 million in 2010. Also, since 2000, the amount of inward FDI to Korea has increased by 3.6 times.In academic circles there has been a long dispute about whether economic integration such as FTAs helps or hinders domestic economic performances. Regarding the relationship between FTA and FDI, the world data show that both FTA and FDI have increased during the last two decades, and therefore, economists pay attention to how FTAs affect FDI. Currently, one of the economic issues attracting much attention in Korea is to find a correlation between FTA and FDI because Korea's FTA and FDI move in the same direction in the 2000s.Table 2 shows that Korea's outward FDI to the FTA partners, Chile, Singapore, EFTA, and ASEAN, tended to grow at a faster rate than the total amount of its overseas investment, particularly after the inception of the FTAs. After the Korea-Chile FTA, Korea increased investment in Chile mainly in the mining industry for resource development but remained at relatively low levels - $45 million in 2004 and $81 million in 2009. Korea's investment in Singapore increased at an average of 60% per year from $594 million in 2004 to $5.295 billion in 2010, especially in the financial and professional services sectors. Outward FDI to EFTA was only $48 million in 2004 but increased dramatically to $2.828 billion in 2010. Korea's investment in ASEAN, a major destination of Korea's overseas investment, reached $31.228 billion in 2010 from $4.478 billion in 2004, with increases in a variety of industries, ranging from mining, metal, and chemicals to real estate and financial services.Inward FDI from the FTA partners has generally showed an upward trend since the FTAs entered into force. Chile became an investor in Korea for the first time in the year that followed the Korea-Chile FTA in 2004. It invested $7 million in 2005 and $20 million in 2009, mostly in the wholesale/retail and warehousing industries to distribute its agricultural products in Korea. During the post-FTA period Singapore has invested in electrical/electronic manufacturing, real estate, and financial services sectors, and in the cultural and entertainment industries as well. Singapore's total investment in Korea increased to $3.469 billion in 2010 from $1.823 billion in 2005. At the start of the year of the Korea-EFTA FTA, inward FDI from EFTA has increased, particularly in the machinery/equipment manufacturing and wholesale/retail and business services sectors. It was $855 million in 2005 and $3.352 billion in 2010. On the other hand, ASEAN has rather decreased its overseas investment in Korea from $6. …

This paper studies the link between production transfer within Swedish-headquartered multinational enterprises (MNEs) in the manufacturing industry and skill upgrading in their parent companies in the 1990s. The analysis distinguishes between horizontal and vertical foreign direct investment (FDI). The increased employment share in the affiliates in non-OECD countries (vertical FDI) has a non-trivial, significantly positive effect on the share of skilled labor in the Swedish parents. On the other hand, the parents’ skill upgrading is unrelated to employment changes in their affiliates in other OECD countries (horizontal FDI). This is consistent with implications of the newly developed horizontal MNE models., Swedish Council for Work Life Research (RALF); Lars-ErikThunholm’s Foundation

The study analyses the role played by technological determinants, using the approach of National System of Innovation (NSI), in enhancing or hampering Foreign Direct Investments (FDI) with different motivations, namely horizontal and vertical FDI. The empirical analysis is carried out using data relative to the final destination of sales of US foreign subsidiaries in 42 host countries grouped according to income criteria. A two step empirical strategy is employed: first, we estimate a benchmark model finding that technological determinants mainly drive HFDI rather than VFDI. Secondly, applying a dynamic panel data approach we take into account that agglomeration economies may play a role as well more than other FDI determinants. Finally, through a sensitivity analysis we account for different ways of measuring HFDI and VFDI finding that measurement issue matters especially to establish which component of NSI results of greater relevance.