<p>Denna uppsats behandlar de möjligheter och problem som kan uppstå vid etablering av</p><p>företag i Bosnien och Hercegovina. Syftet med uppsatsen är att genom en empirisk studie med</p><p>intervjuer på fyra personer som etablerat sig på den bosniska marknaden presentera deras</p><p>upplevelser kring etableringsprocessen och kring den bosniska mikro- och makromiljön, att</p><p>genom en empirisk studie med intervjuer, seminarier samt vetenskapliga artiklar och rapporter</p><p>beskriva vilka hinder och möjligheter som finns vid etablering på den bosniska marknaden</p><p>och att genom en analys av det empiriska materialet utifrån den teoretiska referensramen</p><p>skapa en ökad förståelse för den bosniska marknaden om vilka problem och möjligheter som</p><p>finns.</p><p>Studien bygger främst på empiriskt material som författarna har samlat in under en</p><p>tvåveckorsvistelse i Bosnien och Hercegovina. Målet med vistelsen var dels att samla in det</p><p>empiriska materialet genom djupintervjuer men även att som författare få en djupare</p><p>förståelse för fenomenet som studeras i denna uppsats. Det empiriska materialet har sedan</p><p>analyserats med hjälp av relevanta teorier och utmynnat i en slutsats i vilken frågeställningen</p><p>och syftet besvaras.</p><p>Resultatet av studien visar på gemensamma problem och möjligheter utifrån respondenternas</p><p>upplevelser. Möjligheterna som framkommer är bland annat billig och pålitlig arbetskraft, stor</p><p>potentiell tillväxtmarknad och närmandet till EU. Hinder som företag kan stöta på i Bosnien</p><p>och Hercegovina är oftast av byråkratisk eller infrastrukturell karaktär samt språkliga hinder.</p><p>De flesta av respondenterna rekommenderar Bosnien och Hercegovina som en potentiell</p><p>etableringsmarknad men belyser samtidigt vikten av kunskapsinhämtning eller lokala</p><p>samarbetspartners med kännedom om den bosniska marknaden.</p><p>Sökord: Bosnien och Hercegovina, Bosnien, BiH, investeringar, direktinvesteringar, FDI,</p><p>internationalisering, etableringsmöjligheter, etableringshinder, potentiell marknad</p>

<p>Turkey’s strategic geographical location, the country’s unique Customs Union with the EU and its growing market potential are all factors that create market opportunities for foreign investors. However, despite the presence of necessary economic prerequisites and a diminishing number of barriers to entry, FDI in Turkey has remained quite low. Further, this area has not been covered extensively in the past and has therefore been of interest to study.</p><p>The purpose of this study has been to identify the determinant factors behind Swedish firms’ investment decisions in Turkey and thus find the advantages that Turkey provides for Swedish firms. The motives and advantages form a proposal for how to best promote Turkey as an interesting market for Swedish firms interested in FDI.</p><p>A list of Swedish subsidiaries in Turkey was provided by the Swedish Trade Council in Istanbul and came to represent the selected population. The firms were contacted, using both e-mail and telephone, and were requested to respond to an e-mail survey. The final response rate was 22%. The firms’ responses were then analysed together with secondary data such as general facts about Turkey as well as a business climate report about Turkey made by the Swedish Trade Council in November 2005.</p><p>Regarding the firms’ ownership-specific advantages, the results showed that firm size is irrelevant to the investment decision, while research and development expenditure as well as a long international experience is a condition.</p><p>Concerning Turkey’s location-specific advantages, market potential, the country’s geographic position, its labour costs and its educational level, are important determinant factors as well as the business climate and the economic climate in Turkey. Agglomeration benefits, in business areas where they exist, and the possibility to receive assistance from external actors when entering a foreign market are also important determinant factors. Furthermore, infrastructure is an important determinant factor, but not of a conclusive significance to the investment decision. In addition to the specified variables, the political situation in Turkey was cited as an important determinant factor. The cultural distance between Turkey and Sweden was the only location-specific factor that proved not to be a determinant factor at all.</p><p>Conclusively, the Turkish market offers several advantages to Swedish firms wanting to engage in foreign direct investments. First, Turkey has a strategic geographic position that offers proximity to many other markets. Second, the Turkish market potential is alluring and offers opportunities of long term growth. Third, there are possibilities to receive assistance from external actors which facilitates overcoming probable obstacles that might occur when entering the Turkish market. Fourth, the process of establishing a labour force is freed from complications since labour costs are lower in Turkey than in Sweden and the access to highly educated personnel is good. Last, ongoing development in Turkey’s business and economic climate decreases the investment risk involved when entering the Turkish market.</p>

<p>The link between foreign direct investments (FDI) and trade is firmly established in economic literature. Yet despite the vast amount of literature on this subject, very few have tried to look at FDI through the lens of trade theory, choosing rather to approach the subject on either a macroeconomic-level or on firm-level. The purpose and scope of this paper is to explore FDI through the lens of trade-theory. The central questions in this thesis are whether the gravity model of trade can serve as a reliable model for FDI value as well? Are there certain variables in the gravity model that are distinctively powerful determinants of FDI? Two econometric models are used to determine the gravitational impact on FDI, one ordinary OLS model and one fixed-effect model. The findings when using OLS regressions are that the components of the gravity model of trade are indeed key determinants of FDI value, and the two most significant positive determinants were home country GDP as well as home country per-capita GDP. In the fixed-effect model however, several variables were found to have no significant effect on FDI value and only home country GDP and host country per-capita GDP were consistent positive determinants of FDI.</p>

Since the 1990s and the Swedish membership in the European Union in 1995, the presence of Multinational Enterprises (MNEs) has increased radically in the Swedish economy. The objective with this study is to analyze MNEs effects in different regions within the Swedish manufacturing industry in terms of productivity. Is a region with more MNEs, more pro-ductive than a region with a lower share of MNEs? The theory claims that productivity spillovers of MNEs occurs through three channels namely, via R&amp;D, increased competi-tion and transmission of technology. By observing 81 regions which consists of all 290 municipals in Sweden and taking the average value of productivity and the explanatory variables trough 1997-2004, a cross-sectional analysis is conducted. The results evidently showed signs of productivity spillovers of MNEs on local firms in the manufacturing in-dustry. Findings suggest that (1) a regions with higher share of MNEs did face a higher re-gional productivity. However the spillovers was not successfully absorbed by regions with a industry structure that was not dominated by a the manufacturing industry. (2) Larger re-gions, in terms of population, tend to show a lower productivity level compared to the av-erage levels of the rest of the regions, since their structure was dominated by the service sector. (3) Regions with small technological difference compared to the MNEs, tends to hold the skills and knowledge needed to efficiently exploit the productivity spillovers, hence MNEs influence on regional productivity was greater in these regions than regions with a lower level of technical capability.

The link between foreign direct investments (FDI) and trade is firmly established in economic literature. Yet despite the vast amount of literature on this subject, very few have tried to look at FDI through the lens of trade theory, choosing rather to approach the subject on either a macroeconomic-level or on firm-level. The purpose and scope of this paper is to explore FDI through the lens of trade-theory. The central questions in this thesis are whether the gravity model of trade can serve as a reliable model for FDI value as well? Are there certain variables in the gravity model that are distinctively powerful determinants of FDI? Two econometric models are used to determine the gravitational impact on FDI, one ordinary OLS model and one fixed-effect model. The findings when using OLS regressions are that the components of the gravity model of trade are indeed key determinants of FDI value, and the two most significant positive determinants were home country GDP as well as home country per-capita GDP. In the fixed-effect model however, several variables were found to have no significant effect on FDI value and only home country GDP and host country per-capita GDP were consistent positive determinants of FDI.

Denna uppsats behandlar de möjligheter och problem som kan uppstå vid etablering av företag i Bosnien och Hercegovina. Syftet med uppsatsen är att genom en empirisk studie med intervjuer på fyra personer som etablerat sig på den bosniska marknaden presentera deras upplevelser kring etableringsprocessen och kring den bosniska mikro- och makromiljön, att genom en empirisk studie med intervjuer, seminarier samt vetenskapliga artiklar och rapporter beskriva vilka hinder och möjligheter som finns vid etablering på den bosniska marknaden och att genom en analys av det empiriska materialet utifrån den teoretiska referensramen skapa en ökad förståelse för den bosniska marknaden om vilka problem och möjligheter som finns. Studien bygger främst på empiriskt material som författarna har samlat in under en tvåveckorsvistelse i Bosnien och Hercegovina. Målet med vistelsen var dels att samla in det empiriska materialet genom djupintervjuer men även att som författare få en djupare förståelse för fenomenet som studeras i denna uppsats. Det empiriska materialet har sedan analyserats med hjälp av relevanta teorier och utmynnat i en slutsats i vilken frågeställningen och syftet besvaras. Resultatet av studien visar på gemensamma problem och möjligheter utifrån respondenternas upplevelser. Möjligheterna som framkommer är bland annat billig och pålitlig arbetskraft, stor potentiell tillväxtmarknad och närmandet till EU. Hinder som företag kan stöta på i Bosnien och Hercegovina är oftast av byråkratisk eller infrastrukturell karaktär samt språkliga hinder. De flesta av respondenterna rekommenderar Bosnien och Hercegovina som en potentiell etableringsmarknad men belyser samtidigt vikten av kunskapsinhämtning eller lokala samarbetspartners med kännedom om den bosniska marknaden. Sökord: Bosnien och Hercegovina, Bosnien, BiH, investeringar, direktinvesteringar, FDI, internationalisering, etableringsmöjligheter, etableringshinder, potentiell marknad

This thesis analyses the effect of FDI induced technology transfer and spillover on economic growth in the CEE countries and the Baltic States. We develop a framework were FDI and R&amp;D are seen as sources of technological progress (A). Transition economies, due to the need to catch up quickly with more advanced economies, rely on FDI as a major channel through which they can tap the needed technology. Whether or not technology spills over to the entire economy depends on the ability of the countries to diffuse the advanced technology transferred by FDI. We test using panel data analysis, if FDI alone can spur growth or whether the FDI induced technology spillover effect is enhanced by the level of R&amp;D. Empirical evidence is found that FDI and R&amp;D as an interaction term have helped the CEE countries and the Baltic States to accelerate growth by modernizing the economy through an upgrading process.

The thesis examines the foreign direct investment (FDI) inflows in the Middle East and North Africa (MENA) region and, in order to achieve a better understanding of how MENA economies may attract FDI, attempts to identify their possible location-specific de-terminants. The analysis is based on the results of the cross-section OLS regression meth-od. The examined empirical model is based on the eclectic theory developed by John Dun-ning and the previous empirical studies. To test the relevant location-specific determinants of FDI inflows into MENA region, eighteen countries are sampled for the period 1996-2006. The results of the regression analysis show that physical infrastructure and trade openness are significant determinants of FDI in the MENA countries.

This paper employs an augmented gravity model for a sample of 96 host countries to examine the impact of host country rule of law on direct investment from the United States. This paper further investigates the gap between property rights and freedom from corruption, the two primary components of a country’s rule of law. Property rights and freedom from corruption are both shown to have a significant positive effect on U.S. outward foreign direct investment. This thesis argues that freedom from corruption is a more powerful measure than property rights for determining the location of U.S. direct investment. This suggests that for host countries, reducing the level of corruption may be more effective at stimulating direct capital investment from U.S. investors than expanding property rights.

My dissertation focuses on foreign entrepreneurs—individuals who establish firms outside of their native countries. Despite the prevalence of foreign entrepreneurs, their strategic choices have received little attention in the research literature. For example, when starting a firm, an entrepreneur must decide whether to manage the business personally or hire a local manager, yet we know little about how this choice affects firm performance. To examine this issue, in the first study I use a novel dataset of foreign entrepreneurial firms in Russia and a visa policy change as an instrument for the owner-manager choice. Contrary to the expectation that foreign entrepreneurs would underperform local managers due to the liability of foreignness, I find that foreign owner-managers can benefit their firms: Exogenous assignment of a local manager in place of a foreign owner-manager reduces profits. Foreign owner-managers benefit their firms by hiring cheap native-country labor as well as through reduced agency costs. The second study examines how private benefits of occupying a managerial position affect an entrepreneur’s choice between owner-management and hiring an agent. I show that foreign entrepreneurs with a strong desire to reside in a host country are more likely to become owner-managers. These results are consistent with the idea that entrepreneurs expecting to gain private benefits from managing their firms are more likely to become owner-managers. Moreover, I demonstrate that entrepreneurs are willing to substitute the non-pecuniary benefits associated with relocation for firm profit. These findings add to a growing literature exploring the role of personal preferences in entrepreneurs’ strategic decisions, such as location choice and ownership structure. The third study examines the impact of media coverage on the location choices of foreign firms. Publicly available media information has largely been ignored by the location literature, perhaps because its impact on location choice is expected to be trivial. This study challenges this assumption: Using a new instrument for media coverage (a major anniversary of a city’s establishment date), I show that extensive foreign media coverage of a city increases the number of foreign entrants. Moreover, this effect is strongest for socially and geographically distant firms and entrepreneurs.