China has experienced high foreign direct investment (FDI) inflows for the past 30 years since it opened its door to foreign investors especially after the early 1990s. As a result, with more and more foreign invested enterprises in China, China has experienced dramatic changes in its economy and society. This study conducts an empirical analysis on the determinants of FDI regional and sectoral distribution in China and evaluates the impact of FDI on Chinese domestic investment. The dataset used for this study spans from 1990-2008 and involves both regional-level and sector-level data in China. The key findings of this thesis can be summarised into four points. First, on regional level, foreign investors base their investment decisions by tax rates, geography, labour costs and market size. Moreover, tax incentive effects are proved to be greater in the eastern areas than in the western areas. Second, at sectoral level, foreign investors are affected market size, employment, wage rate, exchange rate and state ownership degree, but not by the level of openness degree. Third, FDI has a significant crowding out effects on domestic investment on national level and in particular the eastern area, but has a crowding in effect in the middle area and no effect for the western area. Fourth, there is no significant evidence that FDI crowds out domestic investment on individual sector level. This study provides some valuable insights into foreign investors’ decision making and the economic costs/benefits of FDI, which have important implications for scholars, practitioners and policy makers alike.

For many years tax competition models and empirical analysis have been showing taxation as a key variable in FDI location decisions. Countries reduce taxation to attract firms in order to create employment and economic development. Firms locate their investments where the net return on capital is higher due to a lower tax burden. But tax competition is not optimal because the lowering of the tax burden causes an inefficient allocation of capital and provision of public goods. Thus, it requires coordination of tax policies in an economic area such as the European Union (EU). <br /> Despite data not showing a complete “race to the bottom” in tax rates, the predictions of the model are widely believed by businessman and the public opinion. But tax competition has been exclusively based on neoclassical theory where imperfect decisions by managers and certain features of the decision making process such as uncertainty are assumed to be not essential. The same applies when considering incompatibility with FDI theory. <br /> A complementary approach, based on the Heiner model, underlines the central role of uncertainty and the relevance of cognitive characteristics in managers´ FDI decisions. By applying an inductive and qualitative method through questionnaires, interviews with managers and statistical tests, the reliability of the behavioural model is confirmed. Furthermore, location decisions are shown to be significantly explained by heuristics and biases arising from the uncertainty faced by managers. <br /> But the role of taxation in these decisions appears less significant than is usually considered. From a sample of 112 Portuguese FDI operations only 4 are explained by fiscal variables. Then, if managers do not rely on taxation to decide the location of their firms´ investments abroad, countries should not emphasize this variable when implementing policies to attract FDI and the main argument for corporate tax integration in the EU vanishes.

V teoretické části tato práce analyzuje současnou ekonomickou literaturu o efektech PZI. Dále identifikuje hlavní příčiny a řešení Evropského trhu práce. ?Flexicurity? aplikována skandinávskými zeměmi nabízí dostatek flexibility podnikatelům, ale zároveň poskytuje záchrannou síť pro ty, kteří si neumí pomoci sami. Velké regionální rozdíly jsou způsobeny centralizací ekonomických aktivit okolo hlavního města, nevhodnou strukturou pracovní síly, chybějícími regionálními centry ale také nevůlí pracovat. V praktické části užitím panelových dat z let 1997 až 2004 v českém průmyslu, tato práce podává důkaz o efektech PZI na trh práce v hostitelské zemi. V důsledku efektu přelévaní, nadnárodní společnosti zvyšují mzdy a produktivitu v domácích firmách. Hypotéza o zvyšování produktivity prostřednictvím substituce práce kapitálem byla zamítnuta. Produktivita práce rostla rychleji než mzdy a proto nezpůsobila nárůst nezaměstnanosti. Nadnárodní společnosti pomáhaly vytvářet efektivní pracovní příležitosti, realokovat zdroje od méně k více produktivním a tímto zvyšovat zaměstnanost. Vytváření pracovních míst zahraničními firmami bylo v průměru doprovázeno destrukcí jedné třetiny těchto míst v domácích firmách. Efekt protahování se liší v čase a mezi sektory. Porovnáním domácích a zahraničních firem se zjistilo, že nadnárodní společnosti vyrábějí s rostoucími externími výnosy z rozsahu, zatím co domácí firmy, produkují s klesajícími externími, ale rostoucími interními výnosy z rozsahu.

Globalization has been a hot topic recently. Many firms experience that their domestic market is too limited for them to conduct their business in. This restriction leads to firms seeking customers on different markets, in different nations, where the companies’ supplies meet the consumers’ demands. Therefore, companies are constantly seeking new places to do business in. Developing economies have been in the scope of many firms recently, with China being in the frontline with its massive labour force and cheap labour costs. However, attention is heading towards the African continent, with its rich natural resources and, like China, large labour force. The purpose of this dissertation is to see how Swedish firms have tried to establish themselves on the emerging African market. In order to achieve this, an abductive research approach has been selected. Qualitative interviews with important people in four Swedish companies have been conducted. The empirical findings suggest that Swedish firms have great opportunities to enter the African market and continue to develop there. Furthermore, there is no method of expansion that is better than another. It all comes down to what specific assets that characterize the company in question. Whether it is a service-oriented company, a manufacturing company or an exporting company will perhaps decide what entry mode would be most suitable. To our knowledge, there is no dissertation that deals with this topic. Consequently, this paper will highlight this research area.

The aim of this paper is to investigate the relationship between economic growth and the inflow of foreign direct investment in the SSA region. Secondary data from organizations and institutes are used to examine if other factors may affect total GDP, in addition to FDI. The estimations used in the regression are foreign direct investment, property rights, level of corruption, logistic performance index, education level, initial GDP and life expectancy.

In the course of the 1980s, Turkey came to recognize the need to change its attitude towards foreign investment, assigning a significant role to direct foreign investment. Hence, after the 1980s, there was a significant increase in the number of foreign firms operating in Turkey and the inf low of foreign capital to Turkey. Although the importance of foreign direct investment in the Turkish economy has been increasing, a variety of questions are far from being resolved. The important obstacle is that the available data do not let us analyze the extent and performance of foreign firms. In this study a considerable effort was made in collecting new data from foreign firms operating in the Turkish manufacturing industry. The main purpose of this study is to analyze and evaluate the economic effects of direct foreign investment on Turkish manufacturing. At the centre of our analysis has been the role of foreign firms in industrial concentration, technological choice and trade behaviour. In the first chapter we outline the main issues to be analyzed in this study and explain the method of collecting and processing data from foreign firms operating in the Turkish manufacturing industry. The second chapter discusses the theories and empirical evidence concerning the determinants of foreign direct investment. We also analyse the industrial distribution of direct foreign investment in Turkish manufacturing. In the third chapter we undertake an overview to the historical background of foreign firms and the legislation covering foreign investment in Turkey. At the beginning of the following three main chapters we analyze the performance of foreign firms in terms of those basic issues in the literature, according to the market imperfection approach, and later on we investigate the performance of foreign firms in Turkish manufacturing using our own data, supplemented by public sources of information.

No description available.

Práce pojednává o vlivu přímých zahraničních investic na rozvoj sedmi vybraných zemí regionu Jihovýchodní Asie a o jejich pozici v souvislosti s potenciálem příjmu FDI.

V teoretické části tato práce analyzuje současnou ekonomickou literaturu o efektech PZI. Dále identifikuje hlavní příčiny a řešení Evropského trhu práce. ?Flexicurity? aplikována skandinávskými zeměmi nabízí dostatek flexibility podnikatelům, ale zároveň poskytuje záchrannou síť pro ty, kteří si neumí pomoci sami. Velké regionální rozdíly jsou způsobeny centralizací ekonomických aktivit okolo hlavního města, nevhodnou strukturou pracovní síly, chybějícími regionálními centry ale také nevůlí pracovat. V praktické části užitím panelových dat z let 1997 až 2004 v českém průmyslu, tato práce podává důkaz o efektech PZI na trh práce v hostitelské zemi. V důsledku efektu přelévaní, nadnárodní společnosti zvyšují mzdy a produktivitu v domácích firmách. Hypotéza o zvyšování produktivity prostřednictvím substituce práce kapitálem byla zamítnuta. Produktivita práce rostla rychleji než mzdy a proto nezpůsobila nárůst nezaměstnanosti. Nadnárodní společnosti pomáhaly vytvářet efektivní pracovní příležitosti, realokovat zdroje od méně k více produktivním a tímto zvyšovat zaměstnanost. Vytváření pracovních míst zahraničními firmami bylo v průměru doprovázeno destrukcí jedné třetiny těchto míst v domácích firmách. Efekt protahování se liší v čase a mezi sektory. Porovnáním domácích a zahraničních firem se zjistilo, že nadnárodní společnosti vyrábějí s rostoucími externími výnosy z rozsahu, zatím co domácí firmy, produkují s klesajícími externími, ale rostoucími interními výnosy z rozsahu.

The research explored the long-term relationship between FDI, GDP and host country employment by using sector-wise panel data from 1991 to 2017 in Namibia. The study applied unit root testing and Cointegration test to test for the presence of a cointegration relationship between the variables. Also, a vector autoregression model short-run causality among the variables was examined. In the end, Impulse response functions are estimated. The research found both a short term and long-term causality going from FDI inflow to employment. Impulse responses show that both GDP and employment respond positively to an exogenous shock in FDI inflow. However, the employment response to FDI inflow shock is smaller than that of GDP response. The paper also concludes that FDI has no causal effects on economic growth in Namibia. It means that economic growth is not contributed by the FDI significantly the results in this research have some significant policy implications. Therefore, as the results suggest that the FDI inflow has a positive impact on employment, because of the results, the researcher also recommends that Namibia pursue the policy of attracting foreign firms aggressively and create all the conditions required for attracting foreign direct investment in order to create further employment opportunities.