Information Age Ireland: The Attraction,the Reality and Never Ending Geography

This paper is an attempt to probe deeper behind the well-documented success story of the Irish economy over the 1990s. Over the decade, the country experienced unparalleled levels of economic growth that saw unemployment levels plummet, inflation levels stabilize and inward investment rise at a substantial rate. Growth rates of gross national product (GNP) best surmise the Irish case, the tigerish performance brought the country from one with a per capita GNP two-thirds of the European Union (EU) average in 1987, to one which exceeded the average 10 years later. An exposition of Ireland's pursuit of a foreign direct investment (FDI) development model forms a major part of this work. Recognizing the importance of FDI in Ireland, and FDI in the software sector in particular, this paper shows how and why investors flocked into the country over the golden era of the 1990s. Exogenously, Ireland's place on the outskirts of one of the world's biggest markets made it an alluring option for outside investors. Endogenously, the rationale behind the pursuit of high-tech FDI policy, beyond employment creation was the expected spill-over effects of multinational companies (MNCs) on the local economy. Questions are asked about the nature of positive externalities both in terms of the growth of an indigenous sector alongside a foreign-owned one as well as the sustainability of this type of investment. Changes in the organizational structures of MNCs over the 1990s, through decentralization of activities and outsourcing are integral to the Irish success story. Organizational transformation resulting in networks of global production have helped Ireland, as a peripheral region, to reposition itself as an access point to the lucrative European market. The geographic alteration on the national level however, has not been recreated on the sub-national scale. Contrary to the writings of many technology determinists, Ireland's pursuit of an information economy has had a very real impact in terms of regional economic divergence within the country. The lack of coherent regional or spatial planning is to blame along with a telecommunications infrastructure that has exacerbated the regional woes of an economy with an explicit focus on high-technology industries.     

Foreign Direct Investment in a Recent Entrant to the EU: The Case of the Automotive Industry in Romania

A U.S.-based geographer presents the results of a survey of car and parts manufacturers in Romania with a focus on the role of foreign direct investment in the restructuring of the sector. Using a questionnaire and personal interviews, the author investigates and identifies the main factors attracting foreign automakers to Romania, which experienced a difficult transition after the collapse of the country's command economy and the ensuing loss of automotive exports to the neighboring states of CMEA. The paper covers the development of foreign ownership of vehicle assembly and car parts manufacturing plants, as well as the effects of foreign investment on Romania's national and local economies. Journal of Economic Literature, Classification Numbers: D20, F21, L62. 1 figure, 2 tables, 68 references.     

Greece in the future enlarged European Union

Abstract

For Greece, to be part of the European Communities/European Union, it has always been a constant challenge to the country's international position. Sixteen years of EC membership have had a remarkable political, diplomatic, socio-economic and cultural effect on the country's internal domain. Indeed, EC membership has contributed to the consolidation of democratic internal processes, it has influenced the administrative capacity of the state, it has affected the external political orientation of the country's foreign policy objectives, it has benefited the economy from substantial financial community transfers and it has brought the Greek culture closer to the other western European cultures. Seen from a more critical perspective, BC membership has also produced severe shock effects, as the Greek economy has been increasingly exposed to European trade and the subsequent single market and it keeps on breeding social tensions in the process of economic and monetary integration.     

FOREIGN DIRECT INVESTMENT,INSTITUTIONAL CONTEXT AND THE CHANGING POLISH PIG INDUSTRY

The world's meat market has had tremendous growth in the past decades. Global meat producers, particularly in developed economies, have grown bigger through expansion, mergers and acquisitions. The livestock markets in less developed countries are particularly the prime targets for investments by these producers. This article looks at foreign direct investment in a transitional economy, using Poland's pig industry as the empirical case study. It argues that such investments not only bring significant changes in the method of producing meat in the host country; they also have particular socio‐political impacts and have thus been met with some level of resistance by local communities. Our study suggests that the relations of foreign firms to the local community are crucial for their long term presence; and these relations are in turn dependent on a gamut of place specific features and the firms' broader corporate philosophy and strategy. In general, foreign firms need to find ways to replicate the kinds of deep social‐economic links between the livestock industry and places that existed in the socialist era. The case studies of American‐owned Agri Plus and Danish‐owned Poldanor illustrate some of the difficulties involved in the foreign investment in the meat industries while demonstrating the viability and possibility of such companies becoming more accepted and welcomed in the local communities.     

Iran's Free Trade Zones: Back Doors to the International Economy?

Since the late 1980s, Iran has pursued a policy of attracting foreign investment and fostering regional trade by granting favored status to the so-called “Free Trade-Industrial Zones” (FTZs) and “Special Economic Zones” (SEZs). To date six FTZs and sixteen SEZs have been set up throughout Iran. The FTZs are strategically positioned for their potential international links and have their eyes on markets beyond Iran, and the SEZs for their value in serving main industries and for improving the country's distribution system and supply network. This paper examines the experience of these zones in Iran in the context of Iran's contradictory and ambivalent approach to international economic integration in general. It is shown that liberal policies pursued in the free zones have been in marked contrast to the approach in the mainland, which has been generally inward-looking in much of the post-revolutionary period. We examine first the rise of free zones as a global phenomenon followed by an overview of Iran's zones and their characteristics. It is argued that serving mainly as “back doors” to the international economy, Iran's free zones have stalled mainly because their promotion has been decoupled from, if not at odds with, official attitudes to the international economy at large. As a result, the zones' ability to attract investment has been limited by both adverse external perceptions of Iran as an investment destination and internal complexities discouraging such investment.     

Building a Venture Capital Market in Vietnam: Diffusion of a Neoliberal Market Strategy to a Socialist State

Abstract

Vietnam’s venture capital (VC) industry took shape in the late 1990s during a period of exceptional economic growth in the country and the development of its high-technology sector. High growth rates and technological advances have typically coincided with both strong VC market activity and state support of equity financing. This, however, has not been the case in Vietnam. In this article a policy diffusion framework is used to investigate the international and domestic origins of Vietnam’s nascent VC policies, and how they became part of the agenda of the Communist Party of Vietnam (CPV) as credit-based, rather than equity-based, solutions. The article argues that Vietnam’s heterodox approach to VC policy results from both external forces from donors and from domestic factors. In particular, Vietnamese policymakers have a preference for credit-based SME financing solutions and Vietnam’s official development assistance providers diffuse expertise on loans, not equity investments, to the Socialist Republic. The only donors recommending VC and equity-based financing in Vietnam have gone “around the state” rather than through it by working directly with the private sector. As a result, Vietnam’s SME financing initiatives have significantly diverged from international VC policy patterns.     

The Cold War, the US Bureau of Reclamation, and the technopolitics of river basin development, 1950–1970

This paper examines the links between Cold War geopolitics and economic development to explain the relatively rapid proliferation of the concept of river basin development throughout so-called “developing areas” of Asia, the Middle East, Africa and Latin America during the latter half of the twentieth century. The research focuses on the United States Bureau of Reclamation, the most significant water resource development agency of the US government, and its engagement in what it termed “foreign activities” beginning in the aftermath of World War II. Grounded in recent work on technopolitics, the constructed scales of water resource development, and histories of the “global” Cold War, this research examines the advancement of water resource development in the Litani River basin in Lebanon—as guided by staff of the US Bureau of Reclamation—during the period from 1950 to 1970. The Bureau operated as a geopolitical agent attempting to implement a universalized model of river basin development, but encountered continuous difficulties in the form of political and biophysical contingencies. The Bureau’s efforts, centred on the basin as the most appropriate unit of development, were consistently undercut by scale-making projects related to global and regional geopolitical concerns. The research concludes that understandings of the technopolitics of development interventions would benefit from a closer engagement with recent discussions regarding the construction of spatial scale within political geography and related fields. River basin development and its material transformation of multiple locales remains one of the largely neglected, but vitally important, legacies of Cold War geopolitics.     

Russia’s Accession to the World Trade Organization

Two noted British economists survey a range of issues linked to Russia’s forthcoming accession to the World Trade Organization (WTO) and its implications for the Russian economy. They describe the far-reaching commitments Russia has undertaken in the realm of tariffs, non-tariff barriers, and openness to inward investment, identifying factors that tend both to support and challenge realization of these commitments. They follow with a brief historical account of the reasons why the accession process for Russia was so protracted and an assessment of the likely medium- and long-term economic impacts of accession for the country as well as for its particular regions and social groups. The arguments suggest that the likely direct impacts of accession will overall be modest (at least over the near- to medium-term), and focused in spheres in which a foreign presence may enhance the productivity of Russian firms in the domestic market (e.g., business services). Potentially, more substantial indirect benefits will largely depend on the scale and seriousness of domestic reform policies launched in support of WTO compliance (i.e., effects of accession on Russia’s political economy). Journal of Economic Literature, Classification Numbers: F130, F500, P330. 3 figures, 6 tables, 54 references.     

Industrial Location as a Bargain: Iceland and the Aluminium Multinationals 1962–1994

This paper conceptualizes industrial location, specifically in the form of foreign investment, as a bargaining process to provide a framework within which to examine Iceland's deals with aluminium multinationals between 1961 and 1994. These deals involve one actual and one planned investment in aluminium smelters. Conceptually, it is argued that the interpretation of industrial location as a bargaining process can be readily incorporated within the geography of enterprise tradition by explicitly recognizing that location factors are not given datum but are created by negotiations among parties whose interests may overlap but do not coincide. In this paper, the main parties are the Icelandic government and aluminium multinationals. While both parties were interested in investments in smelters which would ultilize Iceland's power resources, the initial agreement in the 1960s depended on Iceland's acceptance of foreign investment as an appropriate vehicle of development and the ability of the parties to agree on power supply, power rates and taxation, location, and some jurisdictional issues that had not been anticipated. This deal has since been revised although the impact of the obsolescing bargain is not noticeably evident. The Iceland government has brokered another deal with other multinationals although this project has been put on hold due primarily to unforeseen events in the global economy. Still controversial, the actual and potential structure of Iceland's aluminium industry results directly from these bargains.     

Perspectives on the Potential of Russian Oil

A prominent American specialist on the economy of the former USSR comments on Russian oil in light of a preceding paper on the subject. Noting the congruence of Russia's economic growth with world oil prices, the author points out that the country's growth is endangered by sharp declines in those prices. He also recalls how an oil windfall shaped Russian thinking in the 1970s, questions how long Russia can pump oil at its maximum level by invoking the American experience from 1859 through the peak in 1970 until the present, analyzes the two corporate models in the Russian oil sector, and briefly outlines Putin's new approach to foreign investment in the sector. Journal of Economic Literature, Classification Numbers: L71, O13, O18. 3 figures, 8 references.     

Distinctive patterns of industrial urbanisation in modern Tokyo,c. 1880–1930

Industrial growth in Japan's largest cities has followed patterns that are distinctive, and are significantly different from those that have been adduced in the recent literature on North America. This paper focuses on Tokyo, and in particular its north-eastern part, in the late nineteenth and early twentieth centuries. It argues that a process of ‘industrial urbanisation’ occurred in Japan's capital city, a process that was shaped by the existence of a large proto-industrial base and sophisticated consumer economy and characterised by dynamic but disorderly growth in factories largely supplying consumer goods to the urban market. The paper reviews the disparate, not to say confused, nature of industrial growth in Tokyo, noting the variety in factory size and products as well as production methods. Central to the argument of this paper is that industrialisation preceded attempts at urban planning and that the processes of industrialisation and urbanisation occurred concurrently, laying the base thereby for the large mixed-function districts that became a common feature of Japanese cities.     

FDI and Local Economic Development: The Case of Taiwanese Investment in Kunshan

The extent to which foreign direct investment (FDI) can foster the long-term economic development of lagging regions remains a highly debated issue in the literature, even in the current era of intense territorial competition for mobile investment and resources. The emergence of new industrial spaces in China that have flourished through FDI offers a good opportunity to revisit the topic. Kunshan in Suzhou, China has evolved from an impoverished area into a world-class information technology (IT) centre within 25 years. FDI, mainly from Taiwan, has enabled Kunshan to gradually upgrade its economy, following a development path that has been largely based on the transplant of entire production chains from Taiwan. Local innovative strategies for attracting and increasing the embeddedness of Taiwanese FDI are also an important element of Kunshan's success. This paper discusses the positive aspects, as well as the potential costs and negative facets, of FDI in Kunshan, with the view to draw some policy lessons regarding the impact of FDI on the economic development of lagging regions.     

Regulating Investment Abroad: The Political Economy of the Regionalization of Singaporean Firms

This paper attempts to understand the regionalization of national firms from Singapore within the methodological construct of the regulationist perspective. It aims to demonstrate the usefulness of some concepts in the regulationist perspective for explaining restructuring processes in developing countries, and to evaluate critically the role of some of these concepts—such as regimes of accumulation and modes of social regulation—in illuminating the internationalization of capital through transnational corporations and their associated foreign direct investment. In particular, the paper argues that Singapore's export-led regime of accumulation manifests inherent contradictions in its dependence on foreign capital, the domination of the domestic economy by state-owned enterprises, and the relative underdevelopment of indigenous entrepreneurship. While this accumulation process was embedded in an earlier set of social and institutional mechanisms, its contradictions and tensions were not appropriately regulated and contained. When Singapore experienced two major external economic crises in the mid-1970s and 1985, these shocks and their internal tensions triggered a continuous process of economic restructuring regulated by a distinct combination of social and institutional mechanisms, or "fixes." One such institutional fix in recent years has been the promotion of the regionalization of Singaporean firms through the social regulation of local labor markets and the state-led establishment of institutions to facilitate the regionalization drive.     

Has the Cold War returned to East Asia?

The rise of a non-democratic China as the world ‘s second largest economy, still officially subscribing to Communism or ‘Socialism with Chinese characteristics’ as its ideology1^?1 In Xi Jinping's first speech as the new Chinese leader, after assuming his position as Party Secretary at the 18^th Party Congress in November 2012, he declared that, “we will ensure that our Party will remain at the core of leadership in advancing the cause of socialism with Chinese characteristics”. Xinhua report on 19 November 2012. http://www.chinadaily.com.cn/china/2012cpc/2012-11/19/content_15939817.htm. By adopting the term “Socialism with Chinese Characteristics” – zhongguo tese de shehui zhuyi, the Chinese Communist Party has argued that it has not abandoned socialism by introducing foreign capital and the opening up the Chinese economy to market forces. See for example a report on Deng Xiaoping's remarks to visiting Japanese delegation in 1984, “Build Socialism with Chinese Characteristics” People's Daily, 30 June 1984. http://english.peopledaily.com.cn/dengxp/vol3/text/c1220.html., has raised the spectre of the return of the Cold War to Asia with the United States and China on opposing sides, with China backed by Russia, its former Cold War ally. But to what extent are there historical parallels between the Cold War and the current East Asian international relations system?     

Capitalism and the Fall of Market Morality: How Piketty,Sandel, and the Skidelskys Vindicate R. H. Tawney's Economic Ethic

This article reappraises the thought of the British economic historian, writer on political economy, Christian socialist, and great intellectual of the Labour Party, R. H. Tawney on market morality. It extracts and synthesizes moral insights from Tawney's two most influential books Religion and the Rise of Capitalism and Equality in order to present his economic ethic, its political implications, and Christian theological roots. Tawney's ethic, which holds that market morality, social ethics, and politics are inseparably linked, is then evaluated in the light of contemporary economists and philosophers, including Thomas Piketty, Michael Sandel, Robert and Edward Skidelsky, and Harry Frankfurt. Tawney's ideas are found to be insightful and useful, particularly in linking unrestrained capitalism with inequality, exploring capitalism's opposition to market morality, finding synergies between theological and secular humanist critiques of capitalism, and in addressing criticisms of the moral significance of equality itself.     

Creativity and its contexts: the emergence,institutionalisation and professionalisation of science and culture in Luxembourg

While an abundant literature on the social history of culture and science in Europe has developed over the past few decades, there is to date hardly any academic work exploring the social history of science and culture in Luxembourg. The aim of this article is to put Luxembourg ‘on the map’ by focusing on its scientific research and museums in order to examine the emergence, institutionalisation and professionalisation of Luxembourg's science and culture. It will be argued that the most radical changes occurred in the 1980s and 1990s: a multiplication of infrastructures, an increase in budgets, a professionalisation of practices, the emergence of a market for artworks, and an appearance of dedicated policies. During this period, both the material architecture and the socioeconomic architecture of science and culture have been significantly (re)configured. Within the political debates accompanying these changes, the discourses stressing the positionality and relationality of science and culture are noteworthy: while both were increasingly positioned within a European context, research was predominantly portrayed as a resource to boost Luxembourg's economy whereas culture more as a complement to Luxembourg's image of a financial player and a means to ‘regenerate’ its symbolic capital.     

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.     

Debunking the Myth of Localized Agglomerations: The Development of a Regionalized Service Economy in South-East England

The central argument of this paper is that localized clusters of economic activity, or 'agglomerations', have been overemphasized in economic geography since the mid-1980s. In particular, such analyses are too manufacturing-biased, and place too much weight on the importance of local supply, market and partnership linkages. We will re-emphasize the service-based nature of growth in the core region of the UK economy, and will explore how a broad band of producer service activity is emerging in the Western Arc, owing largely to common locational logics, including back-office decentralization and the new firm-formation process. Such growth is both stimulated and supported by the high demand levels of the regional economy, but evidence suggests that the linkages of such firms extend well beyond the 'local', to cover at least the 'Greater South-East'. Furthermore, the international element in service growth needs to be recognized, as highlighted by the concentration of US foreign direct investment in the software industry along the M4 corridor. When areas outside the South-East are considered (such as Edinburgh, Tyne and Wear, Cheshire), the evidence appears to support Allen's (1992) notion of a 'regionalized mode of service growth' in the South-East.     

Russia's Inward and Outward Foreign Direct Investment: Insights into the Economy

A prominent British economist reviews the recent growth, partner-country composition, and sector composition of foreign direct investment in and out of Russia from a comparative international perspective, based on UNCTAD and Central Bank of Russia data as well as selected case studies. Two hypotheses are tested: that foreign policy significantly affects the host-country pattern of Russia's outward foreign direct investment (OFDI) and that domestic institutions significantly impact the host-country pattern of Russia's OFDI and the sectoral pattern of its inward foreign direct investment (IFDI). Quantitative evidence of foreign-policy influence could not be found, while domestic institutional influences do appear to be present, most notably in the form of system-escaping OFDI.     

外商投资对东莞经济发展的影响及其战略思考

改革开放后,东莞由广东省一个较落后的农业县迅速发展成为国际加工业基地之一,其中一个主要原因在于积极引进外资。本文从东莞外商的投资结构特点入手,通过区内区外对比,分析外商投资效益。在此基础上,客观评价外商投资在增强市域经济实力、促进地方生产网络的形成与发展、参与国际劳动地域分工、促进地方劳动力市场发育等方面对东莞经济发展的积极影响,并针对目前尚存的诸如外资企业中莞方参与较少、外企原材料国产化水平较低、"技术外溢"效应不明显等问题,提出今后利用外资的战略思考。