The Location Choice of Foreign Direct Investment Within Turkey: An Empirical Analysis

This paper investigates the location choice of foreign direct investment (FDI) in Turkey over the period 1996–2003. Using FDI data at the provincial level and negative binomial model, the empirical evidence confirms that agglomeration economies and information costs are the most important determinants of FDI location in Turkey. Specifically, both foreign and domestic agglomerations and in particular urbanization economies strongly affect the location decision of foreign investors. The results also suggest that foreign investors are attracted to provinces with fast growing market, more educated labour force, high density of road network, greater public investment, milder climate, larger area and better quality of life. On the other hand, the empirical findings show that wage, productivity, labour availability, unionization, sea and air transportation, free zones and instability have no significant impacts on the location decision.     

产业联系与外资溢出效应-对浙江省制造业的实证研究

本文探讨水平联系、前向联系和后向联系对外商直接投资溢出效应的影响。利用浙江省制造业数据,通过实证分析发现,浙江省制造业外资总体上具有水平负向溢出效应,同时通过后向联系产生正向溢出效应。水平负向溢出效应主要是外资企业带来的激烈竞争所导致的,产业后向联系产生的正向溢出效应主要通过外资企业的本地采购发生。浙江省内资制造业企业并没有从购买外资企业中间投入品而显著提升效率。     

CONSIDERING THE SOURCE: DOES THE COUNTRY OF ORIGIN OF FDI MATTER TO ECONOMIC GROWTH?*

ABSTRACT It has long been surmised that firms controlled by different countries may have unequal effects on the host economies in which they locate. By looking at the seven major source countries of foreign direct investment (FDI) in the United States, we provide empirical evidence that the state growth effects of FDI differ by source country. We attribute these differential growth effects to the relative differences in factor endowments between the source country and the state. The implication of this result is that technology transfer, believed to be the engine of economic growth, becomes more costly the more dissimilar the endowments.     

Region‐specific determinants of the foreign direct investment in China

This study revisits region‐specific determinants of foreign direct investment (FDI) in Eastern, Central, and Western China using econometric and spatial analyses. It uses a data set covering 31 Chinese provinces and autonomous regions spanning the period 2005–15, together with panel data regression. Our statistical results show that in Eastern China, FDI is significantly associated with bilateral trade, orientation towards the service industry, industrialisation level, and availability of strategic assets in the region. In Central China, FDI is mainly pulled by availability of the domestic market and strategic assets in the region. In Western China, FDI inflows are mainly determined by natural resource endowment, industrialisation level, and regional innovation and production effectiveness in information and communication technology industries. Our analysis also reveals the impact of FDI in China's regional development and its capacity to hollow out the three Chinese macro‐regions. Our findings for China lead us to suggest that those governments seeking to attract FDI should not solely rely on it to facilitate local economic development and should make use of local circumstances in combination with FDI to boost their economies.     

Agglomeration economies and the location of foreign direct investment: A meta‐analysis

This paper undertakes a meta‐analysis of the effect of agglomeration economies on foreign direct investment (FDI) location. It finds strong differences in these economies arising from both measurement and study‐specific characteristics. Economies generated from domestic rather than foreign activity have the strongest effects on FDI, with the latter only significant if related to the home country of the investor. Support is also found for studies that identify different sources of agglomeration economies, although this is largely underexplored in the empirical literature. The average agglomeration economies estimate is not influenced by publication bias and indicates genuine effects for agglomeration economies on FDI location choice.     

Spatial inequality and dynamics of foreign hypermarket retailers in China

The globalisation of retailing has intensified since the mid‐1990s with the rise of a group of international retailers. Foreign retailers have greatly impacted the Chinese retail market since the opening up of the retail sector in 1992. This study aims to examine spatial inequality and dynamics of foreign hypermarket retailers at different geographic scales in China. Although the relative gaps in foreign hypermarkets among Chinese regions are narrowing, the absolute gaps are widening. Logistic regression models are used to identify locational determinants of foreign retailers Carrefour, Wal‐Mart, and RT‐Mart at the intercity level. Carrefour prefers cities with larger urban district populations, longer time of being open to international retailers, and more foreign investment. While urban district populations are significant to Wal‐Mart and RT‐Mart as well, they favour cities where people have higher annual salaries and aim to achieve internal economies of scale at the provincial level. The three leading foreign retailers also have different first‐city and city size preferences in their provincial expansions.     

How Different are Emerging Multinationals' Views of Economic Integration in Europe? A Case Study of Korean Automobile Manufacturers' Strategic Reactions

This study is a survey of Korean automobile manufacturers in Europe, which examines the different perceptions of emerging multinationals to economic integration and the subsequent strategic reactions relating to their particular characteristics. The findings show dissimilar patterns and motivations for Korean automotive foreign direct investment (FDI) when compared to those of established multinationals, which are conceptualized as a pre-emptive strategic advance, particularly in relation to the changing ownership endowments and negative perceptions of the single European market. These finding imply that conventional variables are unlikely to be applicable to emerging multinationals and show the need to segregate them from other multinationals when formulating industrial policies and firm-level competing strategies.     

Market Potential,Productivity and Foreign Direct Investment: Some Evidence from Three Case Studies

This paper aims at analysing the importance of local determinants to foreign direct investment (FDI) in three European regional case studies. The originality of the approach lies in the use of disaggregated data by sector and by region. The results are three-fold. First, regional demand and productivity are fundamental FDI determinants, confirming most studies with national data. Second, regional FDI inflows are more dependent on regional than national determinants. Finally, the effect of market potential measured with absolute gross domestic product (GDP) on regional FDI diminishes linearly with distance and does not when measured with GDP per capita.     

城市群创新投入的空间格局与创新绩效研究——以长江经济带所辖城市群为例

创新投入在城市群内的空间格局是城市群内城市间创新功能分工的综合体现,对城市群整体创新绩效有着较为深刻的影响。基于此,本文以长江经济带6 大城市群为样本,借用城市基尼系数和城市首位度方法,计算了其创新投入的空间格局和演化趋势,并运用面板协整的方法分析了城市群整体创新绩效与创新投入空间格局之间的均衡及因果关系。研究发现：①6 大城市群中长三角城市群、武汉城市群和长株潭城市群的创新资源配置属于单核结构模式,其余的城市群为"双中心"或"多中心"模式;②城市群整体技术创新绩效与创新投入空间格局的城市首位度之间存在"倒U型"关系;③城市群技术创新绩效与城市首位度之间互为长期因果关系,但是从短期看,仅存在城市首位度对技术创新绩效的单向因果关系。     

外资流动的动力学研究——以广东省为例

资本流动受推力、引力和阻力作用,在空间上先向中心城市和交通干线集聚,然后沿城市体系和交通干线作"蛙跳"式、点线式推进,最后向乡村面状扩散。资本流动对流入地区产生正负两方面的影响。投资环境建设和引资工作应针对不同阶段资本流动的特点和驱动因素,采取相应的政策,调控外资流动,减少负面影响,使利用结构合理化。     

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.     

Foreign Direct Investment and Democratic Development in the Russian Provinces: A Preliminary Analysis

Foreign investment in Russia has consistently lagged behind East European countries throughout the last decade. Although formidable obstacles to attracting foreign investment remain throughout the country, some of Russia's 89 provinces have been more successful than others in creating attractive investment environments. One reason for this varied success may be related to the degree of economic and political elite consensus that exists in some regions. This, in turn, may help in the formulation of incentives to attract foreign investors. However, the political consensus that helps to establish a stable policy environment for foreign investment may well imperil pluralistic political development in the long run. Thus, we must be wary of conflating foreign investor interest with liberal politics and democratic development in Russia's regions.     

Serious chemistry on set: the molecular structure of film investment in China

ABSTRACT

Using the case of the Mainland Chinese film industry, this paper argues that the competing features that attract commercial capital investment and drive state centralization create a molecular structure of national film investment, or the division of investment in the film industry into several interdependent centers. A combination of regulations, institutions, the built environment and access to capital leads to a distributed investment of strategic assets linked by bonds of complementarity. Beijing dominates in the area of state-supported production. Shanghai outperforms other cities in terms of foreign direct investment. Qingdao has attracted domestic Chinese private investment and entrepreneurship. Unlike the capital agglomeration seen in countries like the United States where film investment is driven centrally by financial considerations, the Chinese national film industry is strategically divided into several centers that rely more dominantly on political or financial resources. While this paper focuses on China, understanding the molecular structure of the Chinese film industry helps us understand both developed and developing countries that are characterized by robust state oversight and strong commercial media sectors.     

Changes in Land-Use Preferences of Small-, Medium- and Large-Scale Industries Located in Metropolitan Areas (Case Study in Istanbul)

In metropolitan areas, the changing spatial land-use preferences of the industrial sector are the most important determinants in the forming of the macro-form. Metropolitan areas, especially in developing European and Asian countries, become troubled cities with agglomerations of population and investment as a result of failures to apply satisfactory macro-policies and plans throughout the country. Industrial investments on various scales and the land-use preferences of investors have changed over time. The land preferences of production and headquarters of the manufacturing sectors have become basic determinants in the formation of settlement systems due to the transformations that occur alongside technological, economic and social development. This article examines whether or not the basic land-use criterion of the manufacturing sector changes in small-, medium- and large-scale businesses according to their labour structure, defined through an examination of the sectoral structure and relations of scale. Taking the increasing rate of the Gross National Product of the industrial sector in metropolitan areas in every country into account, and examining the land-use preferences of various industrial sub-sectors and scales will serve as an important input when making new planning decisions. The industrial land-use criterion will be effective in the transformation, reorganization or directing of new focuses for the agglomerated industrial structure, especially in Istanbul, which features both Asian and European metropolitan area characteristics. This article will define the existing industrial structure of the Istanbul metropolitan area; and differences between the various scales of land-use preferences within industrial investments will be presented, based on the findings of two investigations carried out over a 5-year period. Several important criteria for industrial investors seeking to establish themselves in metropolitan areas will be determined in the article.     

International Acquisitions: Host and Home Country Explanatory Characteristics

To better understand what place-specific attributes are most important to foreign direct investors, we consider the pattern of international foreign acquisitions, for the year 1993, from a simultaneous home and host country perspective. It is shown that the world's most prominent buyer and target countries are few in number. Furthermore, with the use of a stepwise-like Poisson regression procedure, we determine that both home and host country conditions are important in explaining the spatial pattern of low-tech and high-tech international acquisitions.
Specifically, international high-tech and low-tech acquisitions are best described by country-specific variables measuring trade, investment risk assessment, patents and tourism and that low-tech acquisitions are also linked with a country's domestic economic strength and government efficiency and stability. The outliers from the Poisson regression equations provide evidence that, in particular, the United States and Canada as well as, other countries geographically adjacent are disproportionately active in this type of foreign direct investment.     

Asian Transnational Enterprises and Technology Transfer in Thailand

Like many of its neighbours, Thailand is increasingly interested in upgrading the technological capability of its indigenous firms through the inward investment (foreign direct investment, FDI) of transnational enterprises (TNEs). Its science and technology policies, however, remain fragmented, and they compete with regional distribution priorities. This paper examines the nature of technology transfer between Asian TNEs (Japan and the newly industrializing economies (NIEs), that is, the NIEs of Hong Kong, Singapore, South Korea and Taiwan) and Thai firms based on the responses of some 145 firms from a 2005 survey. It finds only modest levels of technological transfer in production and process technologies. Asian TNEs evaluate factor cost advantages and government incentives favourably. Logistic regressions, however, indicate that government incentives are negatively related to technology process modification between NIE subsidiaries and Thai customers. But, the technical training of Thai workers significantly increases the likelihood of Asian subsidiaries undertaking process technology transfers. Among NIE firms, the ability to import foreign skilled labour further increases the likelihood of such technological activities. Finally, forward linkages among the NIEs are positively associated with firm location in the urban agglomerations of Bangkok and Chon Buri, and, among smaller firms. Our study suggests that prevailing FDI policies have little influence on technology transfer, while technology policies that favour large TNEs work against smaller NIEs that are engaged in modest technology transfer.     

地缘战略视角下“一带一路”倡议对中国对外直接投资的影响研究

“一带一路”倡议的提出兼具改善地缘环境和拉动对外投资的目的。然而，现有研究较少采取地缘战略视角分析“一带一路”倡议对于中国向“一带一路”沿线国家投资的影响。本文基于中国对外投资数据，通过整合政治地理学和经济地理学的相关研究成果，运用双重差分的面板回归模型考察“一带一路”倡议对中国在“一带一路”沿线国家投资的政策效应。研究发现，“一带一路”倡议提出后中国向中亚和西亚地区的投资比“一带一路”沿线其他国家增长更快，说明地缘战略对中国海外投资有重要影响；此外，中国对“一带一路”沿线国家的投资受中国与东道国经贸联系和东道国市场规模的影响，但是地理邻近性、东道国的制度环境和东道国自然资源等因素的影响不显著。本研究对于加强政治地理和经济地理的结合和制定中国对“一带一路”沿线国家投资政策等有参考意义。     

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’.     

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.     

Agglomeration,foreign firms and firm exit in regions under transition: the increasing importance of related variety in Hungary

ABSTRACT

Related variety of economic activities is widely recognized to induce regional development; however, it is not clear how this mechanism takes place in regions that go through major structural and institutional transformation. Furthermore, foreign direct investment (FDI) is typically a major source of structural change in these areas; and we still need a better understanding on how foreign-owned (foreign) firms affect the dynamics of domestic-owned (domestic) companies. For these reasons we analyse firm-level exit in Hungarian city regions between 1996 and 2011, over the late post-socialist transition in manufacturing industries, focusing on the difference between foreign and domestic firms. Introducing ownership into the related variety calculation, we estimate the probability of firm exit with the region-level related variety calculated separately for foreign and domestic firms. Our results suggest that related variety of foreign firms decreases the probability of domestic firm exit earlier during the economic transition compared to the related variety of domestic firms. This finding supports the idea that FDI plays a formative role in regions under transition, and shows that domestic firms benefit from being in agglomerations where foreign firms are technologically related to each other.