Human Rights and Multinationals: Is there a Problem?

In recent years interested individuals and pressure groups have expressed considerable concern over the alleged complicity of multinational enterprises (MNEs) in violations of human rights. While such allegations are not historically unprecedented, the context in which they arise has changed. In particular, the increased integration of the global economy has created a perception that MNEs should take more responsibility for the social dimension of their actions, a perception that enterprises themselves have in part accepted through inter alia the issuing codes of corporate conduct. Furthermore, the rise of identity and lifestyle politics has made MNEs, as purveyors of products and services that help to define consumer lifestyles, a target of concern. These changes have significant implications for the evolution of human rights theory. In particular, they require a shift in the traditional view that corporations can only be victims of violations of human rights committed by states, towards one that extends responsibility for the commission, prevention and avoidance of such violations to MNEs themselves. On the other hand, there exist strong arguments against such an extension of human rights responsibilities. In particular, it is said that MNEs should only be responsible for the conduct of their business and should not be forced to involve themselves in such wider social issues. They are also private law entities and so should not possess the same responsibilities as states. This articles posits that such arguments in favour of extension, though strong and likely to remain influential, cannot answer the need for an extension of responsibility for human rights violations to MNEs where appropriate, on the basis that any attack on human dignity, whatever that legal nature and functions of its originator, must be liable to legal sanction. The technical legal means by which this might be done are considered. None the less, the article ends with a caution that any extension of human rights responsibilities to MNEs must not be allowed to deflect attention from the primary responsibility of states, as the most likely perpetrators of human rights violations, to avoid human rights violations on their own part and to establish a legal order in which the risk of such violations committed by private entities can be minimized, whether through effective national regulatory laws or international agreements on standards of corporate conduct.     

Migration and the location of MNE activities: Evidence from Italian provinces

We investigate the migration-inward foreign direct investment (FDI) nexus in narrow geographies. A novel two-stage empirical strategy allows us to investigate the role of migration as a determinant of multinational enterprises (MNEs) location choices and unpick heterogeneity in foreign investors' preferences towards the presence of migrants in the host location. This allows us to shed light on the relative importance of the underlying mechanisms linking migration and inward FDI. Relying on 1113 greenfield investments by 895 MNEs in Italian NUTS3 regions over 2003–2015, we find that immigrants from the country of origin of the investor exert a positive but highly heterogeneous effect on MNE location choices. Investors are more sensitive to the presence of migrants from their country of origin when they lack experience in the destination country (first-time investors) and when their investments concern market-access or business-services (downstream) activities. This is consistent with the view that migrants act as information brokers that bridge the fixed costs of international business activities.     

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.     

Context and the role of policies to attract foreign R&D in Europe

This paper explores the effectiveness of policies ‘in’ attracting the foreign research and development (R&D) of multinational enterprises (MNEs) to specific countries in Europe. We develop a macroeconomic investigation covering 29 European countries during the period between 1990 and 2012 in order to address: (a) whether the provision of direct financial support for business R&D is effective for the attraction of foreign R&D; (b) whether direct support is more effective than indirect support for this purpose and (c) whether the link between direct financial support for business R&D and the foreign R&D of MNEs is conditioned by the context within which the support is provided. The results of the analysis show that, first, the provision of direct financial support is generally effective for the attraction of foreign R&D by MNEs. Second, direct support for business R&D is more effective for this purpose than indirect support. Third, the provision of direct financial support for business R&D yields greater returns in contexts that are more socio-economically suitable for knowledge-intensive, innovative activity.     

中国社会服务业外商直接投资的空间格局研究

利用省际数据探讨我国社会服务业FDI的空间集聚特征及格局影响机制,以期从新视角分析各地的对外开放程度。研究发现:①我国社会服务业FDI呈地带性分布特征;②社会服务业FDI的空间布局并不完全追随地区的经济发达程度;③我国社会服务业FDI存在不显著的空间正相关,其空间集聚程度低于生产性服务业FDI;④近年来空间正相关省份数量明显增多,东中部沿海及长三角的极化作用加强。⑤经济发展较快的区域逐渐显示出吸引外资进入社会服务业的优势;⑥政策及实施细则、经济发展水平和行业属性,是空间格局的重要影响机制。     

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。     

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.     

外国直接投资的空间经济特征研究

本文采用相关分析的方法,从宏观经济的角度分析了一定的经济区域吸收和输出FDI的数量与该地区经济发展水平和经济的外向性的关系,同时还对中国大陆吸收外商直接投资的地域联系做了相关分析,提出了FDI空间经济的三个特征,即整体性、外向性、近域性。     

厦门特区利用外商直接投资探析

本文分四个阶段回顾了厦门利用外商直接投资推动特区经济发展的历程 ,从投资主体、投资方式、投资领域和投资规模的角度 ,分析了厦门利用外商直接投资的特点并细致考察了厦门利用外商直接投资发展迅猛的动因 ,阐述了利用外商直接投资对特区经济发展起到的推动作用 ,作者针对厦门特区再利用外商直接投资中仍存在的若干亟待解决的问题 ,提出了积极的建议     

劳工地理研究新进展评述

在经济地理学的研究中,劳工常常被看作是与自然资源、资金、技术等同类的经济要素,只重视劳动成本,忽视了劳工作为社会活动主要参与者的角色。近年来,劳工地理研究取得了长足的进展,弥补了传统地理学研究的不足。全球化背景下的工人运动、劳工组织和地方劳工控制体制,劳工市场的空间分割,不同政治、经济和文化背景下的农区劳工地方化逐渐成为劳工地理的重要研究方向。     

Caring at a distance: gift theory,aid chains and social movements

This paper takes as its starting point recent work on caring for distant others which is one expression of renewed interest in moral geographies. It examines relationships in aid chains connecting donors/carers in the First World or North and recipients/cared for in the Third World or South. Assuming predominance of relationships between strangers and of universalism as a basis for moral motivation I draw upon Gift Theory in order to characterize two basic forms of gift relationship. The first is purely altruistic, the other fully reciprocal and obligatory within the framework of institutions, values and social forces within specific relationships of politics and power. This conception problematizes donor–recipient relationships in the context of two modernist models of aid chains—the Resource Transfer and the Beyond Aid Paradigms. In the first, donor domination means low levels of reciprocity despite rhetoric about partnership and participation. The second identifies potential for greater reciprocity on the basis of combination between social movements and non‐governmental organizations at both national and trans‐national levels, although at the risk of marginalizing competencies of states. Finally, I evaluate post‐structural critiques which also problematize aid chain relationships. They do so both in terms of bases—such as universals and difference—upon which it might be constructed and the means—such as forms of positionality and mutuality—by which it might be achieved.     

Foreign Direct Investment and State Export Performance

Since the early 1980s, there has been widespread debate over the impacts of rising levels of inward foreign direct investment (FDI) on the U.S. economy. A frequently noted, but little studied, issue within the debate is the impact of FDI on U.S. foreign trade, and particularly, on the foreign trade of U.S. regions. This study assesses the effects of FDI on the manufacturing export performance of U.S. states during the period from 1980 to 1991. Results indicate that increased levels of FDI are positively related to future improvements in state manufacturing export performance.     

Global finance and the German model: German corporations, market incentives, and the management of employer-sponsored pension institutions

Where there was a settled political geography of state power and responsibilities, the remarkable growth of global finance has put enormous pressure on national economic, political and social institutions. Furthermore, the looming crisis facing many continental European social security systems has raised many doubts about the long-term viability of the German model compared to its Anglo-American rivals. In this context, large German corporations have sought ways of sustaining their global competitiveness by, in part, restructuring their national and regional commitments. To illustrate, in this paper we concentrate on the nature and organization of German employer-sponsored pension institutions in relation to Anglo-American management practice. Two issues drive the analysis. One has to do with an emerging coalition between corporate management and shareholders with respect to the market value of the firm. The second issue has to do with the allocation of risk and uncertainty between the social partners when negotiating the financing and final value of promised retirement income. The institutional framework of collective decision-making common to many of Germany's largest firms is under pressure; three models of investment decision making relevant to pension assets and liabilities are used to illustrate this point. In doing so, we suggest that the German model is more fragile than commonly realized. We also suggest that Anglo-American management practices have penetrated and affected German corporate (national and regional) institutions and regulations. The social market lauded by advocates of stakeholder capitalism is changing rapidly, at least in the sphere of large firms and global finance.     

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.     

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

This paper explores the location strategies of multinational enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investment into the regions of the European Union. The empirical results suggest that EMNEs follow a distinctive logic in their location strategies. They are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely, EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments.     

Household Craft Production in the Prehispanic Urban Setting of Mayapán,Yucatan, Mexico

The complexity of the organization of craft production mirrors multiple aspects of the larger political economies of premodern states. At the late Maya urban center of Mayapán, variation in the social contexts of crafting within a single settlement defies simple classificatory models that once held sway in the literature of nonWestern state societies. Most surplus crafters were independent and affluent commoners; notable exceptions include artisans working under direct elite supervision or elites who were directly engaged in crafting. Although household workshops concentrated around the city’s epicenter, others were dispersed across the site in unassuming residential neighborhoods or near outlying monumental groups. We consider the significance of pronounced household and regional economic interdependencies founded on well-developed surplus crafting practices, imported raw materials, market exchange, and tribute obligations at Mayapán. As for other premodern states, craft production also gave rise to greater opportunities for wealth differentiation within the commoner class. Producers in this urban political capital contributed in significant ways to a stable political economy by supplying goods that were required at all levels of the social hierarchy.     

Mining Boom,Labour Market Segmentation and Social Inequality in the Congolese Copperbelt

The study of the impacts of new mining projects in Africa is generally set in a normative debate about their possible contribution to development, which leads to a representation of African societies as divided between beneficiaries and victims of foreign investments. Based on research in the Congolese copperbelt, this article aims to examine in more detail the inequalities generated by the recent mining boom by taking the processes of labour market segmentation as a starting point. It shows that the labour market in the mining sector has progressively been organized along three intersecting lines that divide it: the first is between employment in industrial and artisanal mining companies, the second is between jobs for mining or subcontracting companies and the third is between jobs for expatriates, Congolese skilled workers and local unskilled workers. Far from simply reflecting existing social inequalities, the labour market has been actively involved in their creation, and its control has caused growing tensions in the Congolese copperbelt region. Although largely neglected in the literature on extractive industries, processes of labour market segmentation are key to making sense of the impacts of mining investments on the shape of societies in the global South.     

The Local Implications of Major Job Transformations in the City: A Spatial Microsimulation Approach

The changing dynamics of regional and local labor markets during the last decades have led to an increasing labor market segmentation and socioeconomic polarization and to a rise of income inequalities at the regional, urban, and intraurban level. These problems call for effective social and local labor market policies. However, there is also a growing need for methods and techniques capable of efficiently estimating the likely impact of social and economic change at the local level. For example, the common methodologies for estimating the impacts of large firm openings or closures operate at the regional level. The best of these models disaggregate the region to the city (Armstrong 1993; Batey and Madden 1983). This paper demonstrates how spatial microsimulation modeling techniques can be used for local labor market analysis and policy evaluation to assess these impacts (and their multiplier effects) at the local level‐to measure the effects on individuals and their neighborhood services. First, we review these traditional macroscale and mesoscale regional modeling approaches to urban and regional policy analysis and we illustrate their merits and limitations. Then, we examine the potential of spatial microsimulation modeling to create a new framework for the formulation, analysis and evaluation of social and local labor market policies at the individual or household level. Outputs from a local labor market microsimulation model for Leeds are presented. We show how first it is possible to investigate the interdependencies between individual's or households labor market attributes at the microscale and to model their accessibilities to job opportunities in different localities. From this base we show how detailed what‐if microspatial analysis can be performed to estimate the impact of major changes in the local labor market through job losses or gains, including local multiplier effects.     

The role of foreign direct investment in an old industrial region: The case of the Basque country and Japanese FDI

Foreign direct investment (FDI) has been used as a tool to improve the competitiveness of countries or regions affected by a structural crisis focused in the industrial sector. Spain, in general, has implemented this strategy successfully. However, the inflows of FDI in Spain have been concentrated in the most dynamic regions: Madrid and Catalonia especially. The Basque Country, typified as a declining old industrial region, has not benefited from this inflow owing to its low attraction for foreign investors. Furthermore, the sectors in which FDI is located are mature ones. The result is that FDI in Spain is increasing the gap between the growing and the declining regions. This fact is clearly detected when the case of Japanese FDI is analysed: Japanese FDI in the Basque Country is scarce and marginal when compared with that directed to the regions of Madrid and Catalonia.     

Foreign direct investment and renewal of industries: framing the reciprocity between materiality and discourse

ABSTRACT

Informed by the evolutionary literature on economic geography, this paper develops a conceptual framework for analysing the complexity between foreign direct investment (FDI) and renewal of industries. Present contributions tend to explain the impact of FDI on regional industry evolution as a static, output-oriented phenomenon, that is, informed by an instrumental rationale in which the dynamism of FDI and regional industry development is linked to polarization of stagnation/decline vs. growth/development. Opposing this, we argue for an epistemological shift in approach to the reciprocity between FDI and renewal of industries as dynamism between material outcomes and discursive processes. To accomplish this, we build on key concepts and understandings from evolutionary economic geography; review the regional effects of FDI literature and build a framework sensitive to contextual dimensions of FDI. We focus on multinational companies’ practices and material outcomes in terms of regional spillovers and the discursive processes in terms of FDI narratives. This framework is exemplified by data from the salmon farming industry and the subsea industry in Hordaland and the oil and gas industry and the mining industry in Finnmark.