Foreign Direct Investment and Regional Export Performance in China

This paper investigates the impact of foreign direct investment (FDI) on the export performance of China at the provincial level. First, it presents a theoretical discussion of the impact of FDI on foreign trade, and then an empirical study of the impact of FDI on the export performance of regions in Chin. It has been found that the impact of FDI on exports differs across three macro-regions in China. The effect is stronger in the coastal region than in the inland regions. Although FDI shows a positive and significant impact on exports from the central region, its impact on the western region is found to be insignificant.     

TNC Strategies and Variations in Intra-firm Trade: The Case of Foreign Manufacturing Affiliates in Sweden

The aim of this paper is to contribute to the understanding of the forms and determinants of intra-firm trade, i.e. international trade between different units under common TNC ownership, this being a major indication of 'deep economic integration' between developed countries in the 1990s. Theoretically, intra-firm trade can be explained by the existence of economies of common governance and are often found to be associated with R&D-intensive industries and economies of scale. In empirical studies, intra-firm trade is often found to consist of intermediate inputs goods, resulting in vertically integrated production chains. The study is based on detailed firm-level data from around 300 foreign majority-owned affiliates (MOFAs) in manufacturing, in Sweden in 1993. The results show that intra-firm sales by MOFAs in Sweden are as high as those found in studies of manufacturing affiliates of US TNCs. Almost all of MOFAs' intra-firm exports are finished products, while intra-firm imports consist of material inputs and finished products for resale. This suggests that these MOFAs are only marginal involved in vertically integrated production chains, especially in terms of exports. The results of a regression analysis complement earlier studies by showing that the level and composition of intra-firm trade is significantly affected by the international strategy applied by TNCs when operating foreign manufacturing affiliates. Intra-firm exports of finished products and material inputs are positively associated with efficiency-seeking FDI, e.g. affiliates engaged in rationalised production. Market-seeking FDI is associated with intra-firm imports of complementary finished products for resale. By contrast, resource-seeking and strategic asset-seeking FDI was negatively associated with intra-firm trade.     

U.S. and Japanese Foreign Direct Investment in East Asia: A Comparative Analysis

East Asia has led the world in economic growth and export expansion in recent decades. The phenomenal rate of economic growth among the so‐called “four little tigers”—Hong Kong, Singapore, South Korea, and Taiwan—enabled them to achieve newly industrializing country (NIC) status in the 1980s, followed by Indonesia, Malaysia, and Thailand. Earlier studies explained the development from the government‐led development paradigm, or the so‐called the statist approach. Scholars also argue that foreign direct investment (FDI) played an important role in the economic development, thanks to technology transfers. Kojima and Ozawa and later Kohama, however, argue that Japanese FDI help East Asian economies while U.S. FDI do not because Japanese technology transfer practices are appropriate for East Asian countries but not the United States'. Thus, we revisit the issue of East Asian economic development and test the economic effects of FDI from the United States and Japan. Using a Barro‐type growth model, we test the effects of FDI from the United States and Japan on economic growth in East Asian NICs. We find that FDI from both the United States and Japan helped economic growth in the “four little tigers,” but not in Indonesia, Malaysia, and Thailand.     

How China Navigated the Dilemma of Trade Liberalization and Government Revenues

Many economists believe that in the long run, the aggregate performance of open economies is better than that of closed ones, and that open policies contribute significantly to economic development. At the same time, many political scientists and policy makers fear that, in the short run, one of the steps towards openness — trade liberalization — may harm government revenues. However, in the 1990s, China successfully navigated the dilemma of trade liberalization and government revenues. In this period, China decreased tariff and non‐tariff barriers for WTO accession, but has achieved dramatically increased tariff revenues since 1999. This study explores how China implemented trade liberalization and simultaneously increased tariff revenues in the 1990s. It demonstrates that a series of institutional arrangements, including a reform of Criminal Law, rigorous anti‐smuggling activities and a de facto tax imposed on the export sector, successfully curbed smuggling activities through the processing trade, and made foreign‐invested manufacturing enterprises the major contributors to the stability of customs revenue. China's case shows that a prosperous, export‐oriented and foreign‐invested manufacturing sector could potentially provide a developing country with a source of customs revenue.     

Foreign Trade in China's Electronics Industry

Three Taiwan-based economists examine the effects of GDP, per capita GDP, geographic distance, FDI outflows and inflows, openness to trade, bilateral investment treaties, and other factors on the volume of bilateral trade between China and 40 of its trading partners in the up-, mid- and downstream segments of the country's electronics industry. Pooled cross-section and time-series data are employed in an empirical estimation for the period 1995-2005, which indicate that the Chinese electronics sector's import/export volumes have grown substantially alongside China's economy. The authors address a specific set of issues questioning whether FDI inflows have created a trade effect in the electronics industry, whether they have lead to a measure of import substitution in China's electronics industry, and whether the net impact of opening the market has been positive or negative on the sector's foreign trade. Journal of Economic Literature, Classification Numbers: F14, F21, L63, O53, P33. 6 tables, 23 references.     

Economic integration and the diversification of regional exports: evidence from the Canadian-U.S. Free Trade Agreement

We investigate the impact of Canada–U.S. trade integrationon the degree of export diversification of the Canadian regions.Trade integration is captured through the decrease of trade-weightedtariffs that were boosted by implementation of the Canadian–U.S.Free Trade Agreement. We found strong evidence to support integration'slong-run impact on the patterns of absolute exports diversification.Significantly, this new finding remains robust to the exclusionof the primary sectors and to the potential presence of unitroot in the data. Our results lead us to support a positivelong-run relationship between trade integration and export diversification.     

Foreign direct investment and international trade: evidence from the US and Japan

This paper examines the question of whether foreign direct investment(FDI) creates or replaces international trade. Theoretical andempirical studies in the past have shown that FDI tends to replacetrade, but more recent evidence suggests the opposite, thatis, FDI creates and complements trade. We analyse the outwardinvestment of Japan and the United States to 29 and 32 countriesrespectively for the period 1996 to 1999. Our analysis indicatesthat trade creating effect dominates on the whole, and thatthis effect also varies significantly across countries.     

The Problem of Economic Regionalization of Developing Countries

In contrast to developed capitalist countries, where economic regions generally evolve on the basis of manufacturing complexes, the predominant region-forming factors in developing countries are usually mining and agriculture. Also, while internal economic relations play an important function in the economic regionalization of advanced countries, in developing countries it is foreign trade that is more significant since much of the output of mining and commercial agriculture is generally destined for export.     

FOREIGN DIRECT INVESTMENT AND URBAN CONCENTRATIONS: UNBUNDLING SPATIAL LAGS*

ABSTRACT Foreign direct investment (FDI) is seen as a way to import technology and catch up with economic leaders. It is therefore important to understand why some countries attract more investments by multinationals than others. We expand the set of common determinants of FDI with urban agglomerations and ask the question whether the accessibility of market potential and the number of potential investment locations, in the shape of urban concentrations, matters, since the importance of urban agglomeration economies for FDI has not been investigated before. We show that countries with several medium‐sized cities attract more foreign investment, especially if they are close to main agglomerations, but too much concentration (primacy) reduces the inflow of FDI. Moreover, we unbundle spatially lagged FDI by including spatial lags of the determinants of FDI. It is important to disentangle such third‐country effects in order to understand how FDI flows depend on the complex ways in which multinationals fragment sales and production across countries. Using a panel of U.S. affiliates’ sales in foreign countries between 1984 and 1998, we find evidence that cities are important drivers of FDI. Furthermore, third‐country effects suggest that horizontal and complex forms of FDI coexist.     

A China Paradox: Migrant Labor Shortage amidst Rural Labor Supply Abundance

A U.S. geographer and noted authority on China's urbanization seeks to explain the apparent paradox between reported recent shortages of migrant labor in cities in eastern China's export-oriented manufacturing belt and the abundant supply of labor in China's rural areas. He examines important socioeconomic contexts often overlooked in the debate over whether China has reached the Lewis turning point (when dual rural-urban labor markets begin to merge and a labor surplus economy is transformed into a full-employment economy), which make possible the existence of such shortages over the short term and in local areas. These include the special characteristics of China's export industrialization (e.g., preference for workers in the age category 16-30); its immense migrant labor force, constrained under the hukou system; the short-term impacts of China's economic stimulus program launched in early 2009 in the wake of the global economic crisis; and cycles in the global economy that support or impede export production.     

Comparing Outsourcing Patterns in Domestic and FDI Manufacturing Plants: Empirical Evidence from Spain

To fully understand the local linkages of Foreign Direct Investment (FDI) plants, we argue it would be useful to analyze the outsourcing patterns of such plants in comparison to domestic plants. Consequently, we examined 1031 industrial plants, both domestic and foreign, located in Spain. The FDI plants show patterns similar to those of domestic plants with regard to the level of outsourcing, the incidence of outsourced production on the companies’ total sales and the economic content of outsourcing relationships. Further, our results show that levels of embeddedness in the local and regional economy of FDI plants are not significantly different from domestic plants. However, FDI plants are highly concentrated spatially in the largest industrial agglomerations. For such plants, Barcelona not only seems a preferred site for location but also for contracting manufacturing tasks.     

辽宁省城市中心性研究与城市发展

以辽宁省地级及以上城市为研究对象,在建立评价指标体系基础上,基于区位商法和主成分分析法,对城市中心性进行了测度和研究。通过对过程数据和结果数据的进一步分析,发现辽宁省当前城市发展在区域经济空间结构、社会经济体制、第三产业、经济外向度等方面存在的问题,并提出了相关的政策建议。     

中国电子机械制造业出口产品贸易网络研究——基于产品内分工与贸易视角

在区分中间/最终产品、一般/加工贸易后，描述了中国电子机械制造业出口产品贸易网络，并探讨了出口经验和产品关联如何影响企业进入网络从事出口和拓展优势贸易伙伴。结果表明：①出口地、目的国、出口地-目的国维度出口经验和产品关联可以显著地促进4种电子机械制造业产品企业进入特定贸易网络进行出口。②在位出口企业扩展优势伙伴方面，出口地-目的国维度出口经验对4种企业均有促进作用；目的国出口经验、出口地产品关联的促进作用集中在中间产品企业；出口地出口经验则集中在一般贸易企业。     

基于知识产权视角下的中国区域对外贸易发展空间格局研究

在经济全球化背景下,知识产权与对外贸易具有十分密切的联系,知识产权既是对外贸易的重要内容,也是各国开展对外贸易的核心竞争力所在,知识产权保护更是推动了对外贸易的发展。中国企业出口产品的知识产权含量亟待提高,在货物贸易和服务贸易方面均有体现,区域性不均衡特点也十分明显。要转变中国对外贸易的发展模式,就要结合各区域对外贸易的特点,强化知识产权战略的指导作用,加强对知识产权的战略性创造、运用和保护,推动区域对外贸易的可持续发展。     

Intrametropolitan Location of Producer-service FDI in Istanbul

For the purpose of increasing the capacity of foreign trade and attracting more foreign capital, Turkey began to modify its relevant economic laws and institutions in the 1980s. This restructural process proved its success, increasing the number of firms with foreign capital operating in Turkey 29 times between 1980 and 1997. However, considering other developing countries on a global scale, this increase rate was less than expected. When the conjuncture of global political systems undergoing dramatic changes since the previous century is regarded carefully, entering the twenty-first century as a country still in the process of developing, it is most probable that Turkey will become a country of significant power in this century with its historical, geographical, ethnic, and economic potentials in the Balkans, Middle Eastern and Caucasian regions. Due to the emergence of new opportunities in the Middle East, the Turkic Republics, Ukraine and the Federation of Russia since the beginning of the 1990s, in order to preserve its external appeal, Turkey has been obliged to adapt to the changes in the goals of this area. With the advantage of being a coastal city positioned at the crossroads of trade routes throughout history, Istanbul has been the centre of commercial control and coordination. Today the advantage of its geographical position makes Istanbul an important centre preferred by global capital for reaching local markets and resources. In other words, Istanbul is a candidate to be the centre of the functions of control and accessibility within these interregional networks. In this respect, the pattern of foreign direct investment (FDI) in producer services has been investigated. This paper represents a portion of the research conducted in Istanbul by Istanbul Technical University.     

Fulbright's Middle East: A Senator's Influence on American Foreign Policy

This article examines Sen. J. William Fulbright's views of and impact on U.S. policy toward the Middle East, particularly the Arab‐Israeli conflict. It contributes to the literature on the history of U.S.‐Middle East relations and the role of Congress in foreign policy. While Fulbright was not always (or even most of the time) successful in shaping debate and policy along the lines that he advocated, at several crucial junctures, he did have an important influence on U.S. policy toward the region.     

Foreign direct investment: facts and perceptions about Canada

Recently improved data on foreign direct economic control and foreign direct investment (FDI) are used to evaluate common perceptions of the degree of Canadian dependency. Including financial corporations in measures of foreign control yields rates of foreign control that are lower than those traditionally cited. Foreign and U.S. control in Canada declined in recent decades and only minor changes are evident since ‘free’ trade went into effect. Contrary to what is often assumed, Canada's rate of inward FDI is lower than in some advanced capitalist countries and its outward rate of FDI is higher than most G7 countries. The concentration of Canadian direct investment in the U.S. is similar to that many West European countries in the rest of Western Europe. The findings indicate that Canada is a ‘core’, not ‘dependent’ capitalist country. De récemment données améliorées sur le contrôle direct des avoirs économiques et sur les investissements directs étrangers sont utilisées pour évaluer les perceptions du contrôle économique et le degré de la dépendance économique canadienne. Sont aussi analysées, les institutions financières en termes de leur contrôle domestique et étranger. II appert que le contrôle étranger est moins important que l'on croit. Les contrôles étrangers et états‐unien de l'économie canadienne sont en déclin aux cours des dernières années. L'influence du libre échange ne semble pas être significatif. Certes, le taux interne d'investissements directs étrangers est moindre que pour d'autres économies capitalistes avancées, mais le taux externe d'investissements directs étrangers est plus important que pour la plupart des économies du Groupe des Sept. La concentration des investissements directs canadiens aux États‐Unis est similaire aux concentrations de plusieurs économies de l'Europe de l'ouest au sein de l'Europe. Les analyses tendent à indiquer que le Canada est une économic capitaliste ‘centrale’ et non ‘périphérique’.     

Tourism and Foreign Investment in Australia: Trends,Prospects and Policy Implications

Processes of internationalisation and structural economic change have had profound impacts on the pattern of regional economic activity in Australia. The 1980s was a decade of rapid growth in foreign investment, reoriented to the property and services sector, including tourism. It was also a boom time for international tourism, which emerged as the nation's leading export industry. In addition to the national gateway city of Sydney, the rapidly growing coastal cities of Gold Coast and Cairns in Queensland emerged as major international tourism destinations underpinned by significant levels of foreign investment, particularly from Japan. The 1980s boom years for tourism and foreign investment are revised and raises policy implications raised for the longer-term development of tourism and the role of foreign investment.     

A Geospatial Analysis of China's Exports, 1991-2008

Three Taiwan-based economists employ a range of exploratory spatial data analysis tools (e.g., Moran's I and LISA statistics) to investigate trends in the growth of China's exports over the period 1991-2008. A particular focus is on the detection of spatial correlations between China and 40 export destination countries in major world regions. Emphasis in the paper on the key years of 1991, 2001, 2006, and 2008 has enabled the authors to analyze the impacts on China's trade of such major events as the country's accession to the World Trade Organization and the global economic crisis of 2008-2009. The results of the spatial analysis reveal the continuing importance of the U.S. and Asian countries in China's export trade (despite changes in the character of trade relations) and identify the spatial outliers (e.g., in Latin America) that may serve as the basis for new export markets for China in the future.     

1976～1978年间的中国对外贸易

十一届三中全会前夕,在中共中央、国务院"对外贸易要有一个大的发展"的号召下,中国的对外贸易开始启动,中外贸易团体往来频繁,中国政府在完善原有对外贸易机构的同时,通过召开专题研讨会、派出国小组国外调研、定期举办商品交易会等方式,为发展对外贸易创造良好的条件。由此,1976～1978年间中国的进出口贸易发展迅速,并同世界上许多国家签订了一系列贸易协定。这是十一届三中全会上确定进一步发展对外贸易的基础,为后来中国对外贸易的发展创造了条件。