After joining WTO (World Trade Organization) in 2001, the China government started to adjust its laws, regulations and the limitation of foreign direct invest. As the result, it helps the economic to grow and the foreign direct invest ratio to increase, and finally derive the demand of air cargo delivery. This research focuses on the foreign direct invest on air cargo in China, such as investigate the development of air cargo industry after the globalization in China, discuss the development of transnational air cargo industry in China, and find out how did the foreign air cargo companies enter China and figure out how did they invest. According to the research result, the international trade industry is liberlization than before, especially the distribution service industry, after China joined WTO. In addition, when the foreign direct invest is increasing, the demand of air cargo delivery is also increasing. However, the local air cargo companies could not meet the demand; therefore, the transnational air cargo companies invest the air cargo industry in China. In fact, the transnational air cargo companies and local industry had cooperated with each other by joint venture and win the market share. On the other hand, in order to meet the globalization, the local air cargo companies should cooperate with foreign companies in some ways, such as joint venture or strategic alliance, and than create mutual benefit.

The total amount of FDI ¡]Foreign Direct Investment¡^ in China has increased dramatically in recent years; however, what factors have motivated Chinese firms to invest abroad? Since 2001, China¡¦s foreign exchange reserves have been continuously increasing1, while holding significant FX reserves has pressured the central bank to offset the loss which resulted from RMB appreciation. Moreover, China, where they controlled less strategic asset than the global rivals, taking FDI was also late than developed countries. As a response, Chinese government has implemented the ¡§Going abroad¡¨ policy that foster OFDI which encouraged domestic companies to invest overseas so as to enhance its international competitiveness. In doing so, it is able to address the competitive disadvantage, acquire both tangible and intangible assets by engaging international activities, and in the meantime to sterilize the increase of foreign reserves. In terms of FDI entry mode, China has engaged in different levels of transnational investment. Exporting, OEM, international subcontracting, and joint venture are generally undertaking by Chinese firms, whereas state-owned companies focus on mergers, acquisition and organic expansion. Previous studies into the internationalization have tended to discuss inward FDI, while outward FDI is also important. For the above reason, this study aims at examining both these two parts as well as the internationalization of Chinese firms. Starting from the top 500 enterprises, we will mainly target the energy and IT industry as the basis of analysis. The data collection spans from 2000 to 2009, also include the content analysis .To verify the hypothesis, we apply multiple regression to investigate whether the internationalization of these two sectors have display the correlation between sales revenue, and foreign paten outputs. The empirical results find that: ¡]1¡^ The motivation of IT industry are more inclined to acquire intangible asset and explore new market, whereas the energy industry aims at obtaining natural resources.¡]2¡^ On the respect of entry mode, the incentive of state-owned enterprises is to fulfill the state policy , mainly adopt mergers and acquisitions. and the non-central state-owned and private enterprises relatively focus on organic expansion as well as the M&A. ¡]3¡^ With these two hypotheses, the first one reflects the internationalization is significant to foreign patent outputs and positively related to each other. and second exhibits that all independent variables, including the internationalization ¡]score¡^, patent outputs as well as exporting are all positively significant to the sales revenue. In conclusion, ¡¥¡¥going abroad¡¦¡¦ strategy has positive contributions to the sales revenue.

My dissertation studies various questions falling into the broad context of macroeconomics and international economics. The questions have macroeconomic components because they are concerned with the behavior of aggregates. Specifically, the second and third chapters of my dissertation study the causes of fluctuations in aggregate macroeconomic variables and the way policy can be coordinated internationally to reduce these fluctuations, respectively. In addition, chapters III and IV address questions that fall into the realm of international economics. They are concerned with the optimal exchange rate regime between two countries, the consequences of partial exchange rate pass-through and the effect of an increase in vertical Foreign Direct Investment (FDI) by domestic firms. The framework of my analysis is given by different versions of general equilibrium models. The second chapter of my dissertation decomposes fluctuations in aggregate observables for the UK economy during the 1980s recession. Using a modern accounting procedure, I estimate parameters that describe the economy using annual data from 1970 to 2002. Then, I simulate different versions of the model to find the distortions that are essential in driving the observed fluctuations. I find labor market distortions to be crucial in accounting for the episode, suggesting that the policies of the time were well targeted and effective. The third chapter of my dissertation studies policy coordination in a two-country framework allowing for partial pass-through. In particular, both countries are assumed to have monetary and fiscal stabilization instruments available. The optimal setting of these instruments under differing pass-through regimes is analytically derived. Fiscal policy is found to be used in a counter-cyclical fashion. In addition, the magnitude of fiscal stabilization is the largest when pass-through is partial. In the fourth chapter, I study the consequences of vertical FDI on aggregate productivity and welfare. The framework allows for heterogeneity across firms in two dimensions. It is firms that are at a disadvantage with respect to manufacturing costs that are benefiting most from moving their production process abroad. Overall, the ability to engage in vertical FDI increases productivity, lowers prices and thus increases welfare.

This paper analyzes the opportunities and challenges Chinese state-owned enterprises (SOEs) confronted during the economic transition from planned economy to market economy in China. In a string of SOEs reform events, Chinese government is in strong hopes of improving Chinese economic system and SOEs management efficiency by attracting foreign capital inflow. Merger and acquisition are the present global phenomenon. With current successful foreign direct investment (FDI) trends and strategies in China, more and more FDI entered the Chinese market by merging Chinese enterprises and achieved corporate goals. However, it is apparent that the motives of FDI differ from those of Chinese enterprise being merged, therefore the following potential consequences arise with China¡¦s open policy for FDI: what impacts do FDI bring to China? Does FDI in fact reform SOEs? Are SOEs¡¦ efficiency improved, in terms of financial and management, after merged by FDI? Is FDI¡¦s entry to Chinese market without difficulties? The paper intends to answer the above questions.

Industrial Networks and Foreign Direct Investment: The Study of Taiwan¡¦s Steel Industry Abstract Facing the changing environment, many Taiwan businesses try to achieve economy of scale and develop their markets by taking foreign direct investment (FDI), especially under poor macroeconomic conditions in Taiwan and the driving force of cheap costs from developing countries. Conventionally, it is considered that big firms take FDI to bring their specific advantages into foreign markets. From the view of industrial networks, FDI is a method for firms to set up a linkage with foreign networks. They need not establish foreign networks by themselves. They can establish and utilize foreign networks through FDI. The steel industry is capital and technology intensive, and with high entry barriers in nature. The industrial networks are very important to a steel firm because it is very difficult to attain all the production resources. The key success factor is the competence to grasp the production resources so as to obtain cost advantages and synergy. In the past decade, facing lack of labor, increasing land cost, and market pull, the down-stream firms took FDI dramatically. The middle- and up-stream firms are also eager to do so. Because of the huge investment scale and other limitations, it is not easy for upstream firms to take FDI. Even China Steel Corporation (CSC) has overcome a lot of obstacles in the past decade and finally acquired ORNA Steel in Malaysia to establish a bridgehead in Southeastern Asia. From the view of industrial networks, this study tries, first, to investigate the network change of the firms of Taiwan¡¦s steel industry after taking FDI, and next examine the change of competitiveness and ways of attaining profit. We construct a model which divides them into four types of firms and their ways of attaining profits. They are: flagship type industry/profit sharing, clan type industry/profit shifting, lone knight type industry/profit capturing, stragglers type industry/profit disappearing. Then, we use this model to examine cases of Taiwan¡¦s up, middle, and down stream steel industry in a dynamic way. Finally, we propose some recommendations for the government and steel industry to improve the competitiveness of the steel industry.

The purpose of this research is to analyze the dynamics of innovation and technological diffusion from the channels of international linkage at the microeconomic level. We specify and want to learn about the effects of sectoral innovation and technology transfer with international linkages: Imported technology, Information and Communication Technology, Foreign direct investment and its spillovers and trade. We apply a dynamic factor demand model to analyze the relationship between four channels of international technology transfer and diffusion, allowing for heterogeneous international linkages and their contribution to productive performance on Taiwan¡¦s manufacturing industries. We adopt the econometric method of the Generalized Method of Moment (GMM) to estimate the parameters of related equations. Throughout the empirical analysis, we hope to understand how degree of effects the four channels of technology transfer have on firm¡¦s productivity performance and the adjustment process of quasi-fixed input, capital, because of technology transfers. We found that:(1) It has the highest output level in Electrical and Electronic Manufacturing in Taiwan¡¦s manufacturing industry.(2) The exogenous technical change has a positive effect on output growth. As for the channels of international linkage, imported technology and R&D all have positive contribution to productivity. FDI has a negative impact on output growth except for Petroleum & Coal Products Manufacturing, but the effect of the FDI spillover has a positive contribution in the Taiwan¡¦s manufacturing industry.

<p>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&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.</p><p>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&D.</p><p>Empirical evidence is found that FDI and R&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.</p>

<p><p>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.</p></p>

<p>The last two centuries have been distinguished by technological innovation, liberalization and globalization of the world economy. Out of this environment the multinational enterprises (MNEs) have arisen -seeking the best profit opportunities around the world without consideration to poverty and equality in the host countries. This has raised the interest of the present study where the objective is to assess the impact MNEs have on the host country in terms of transferring know-how. By testing two hypotheses, the study attempts to analyze whether MNEs entail a transfer of skills and also identifies the extent to which MNEs are a potential source of skill-upgrading. The research is realized by a qualitative minor field study in Dakar where 24 semi-structured interviews are carried out at three MNEs and three Senegalese enterprises. The interviews are jointly analyzed with a theoretical framework in order to determinate if there are significant differences between the two types of enterprises concerning the wage-setting, working conditions as well as transfer of know-how. The result shows that MNEs have more training opportunities then local enterprises, the working conditions do not differ significantly. Further there is no evidence found for MNEs paying higher wages then local enterprises judged by the general attitude of the interviewees. It is therefore assumed to be some labor mobility, implying that the training contributed by MNEs might work a source of skill-upgrade for the workforce in Dakar.</p>

Promoting economic diversity is important for states reliant on natural resources as the major source of economic development. Many of these states suffer from the Dutch disease leading to negative effects, which hinders economic diversification. One of the ways to reduce dependency on national resources is to encourage Foreign Direct Investment (FDI) inflows, which aids diversification by the transfer of technology, the creation of new employment opportunities, and the adoption of modern management practices. The Gulf Council Cooperation (GCC) countries recognised the necessity and benefits of FDI as an aid to economic diversification; it seems, however, that Kuwait is lagging behind in this endeavour. The government of Kuwait has engaged in a series of policy measures to induce Multinational Companies (MNCs) to invest in Kuwait, but the results, thus far, have been disappointing. The formal and informal institutions interact in a variety of ways. However, ineffective formal rules can create different outcomes; particularly, in the presence of strong informal institutions. In such a case, formal rules and procedures are not enforced systematically, that is, enabling actors who are involved in the policy process to ignore or violate them, which subsequently results in a failure to attract inward FDI to a host country. Thus, this study investigates the reasons behind this failure by examining the role of formal and informal institutions on FDI policy and on decisions on whether to grant FDI licences by means of using a New Institutional Economics (NIE) approach. The conceptual framework is used as a guide for an inquiry into the subject of study by constructing a category of intellectual scaffolding, which would provide a coherent structure (Schlager, 2007). The conceptual framework in this study systematically organises the investigation into how a MNC examines a potential investment location by dividing the host country assessments into four distinct 'stages'. When systematically conducted, the respective approach is grounded in the existing literature, which provides theories regarding the behaviour of MNCs in relation to their decision-making processes for considering locations for their FDI projects. The research questions derived from the conceptual framework are answered using a mixed methods research approach that uses three sets of data survey, semi-structured interviews, and secondary data. Firstly, the findings show that almost that all MNCs in the Gulf region have a limited awareness regarding investment opportunities in Kuwait, FDI laws and regulations. Secondly, the findings reveal a number of attractive and unattractive locations, and institutional factors of Kuwait. Finally, it is discovered that the high rejection rate of FDI applications is linked to unsuccessful policy implementation, which is a result of interaction of both formal and informal institutions in Kuwait. Subsequently, the results are utilised to make a number of recommendations for government policy makers, administrators, and for MNCs regarding how to improve FDI inflows into Kuwait. The results are also used to contribute towards the international business literature concerning the institution based view of FDI, and for government policy connected to attracting FDI.