Orientador: Enéas Gonçalves de Carvalho / Banca: Alceu Gomes Alves Filho / Banca: André Luiz Correa / Resumo: Este trabalho procura analisar o ciclo recente de expansão da indústria automobilística brasileira (2003 - 2010), discutindo os fatores e as características básicas neste processo. O trabalho inicialmente aborda a dinâmica e o direcionamento do IDE da indústria automobilística internacional, tendo como pano de fundo a globalização deste setor industrial. São analisados os determinantes da retomada de investimentos da indústria automobilística brasileira. É feito também um exercício econométrico que tem por objetivo apresentar os principais fatores que explicam a evolução recente da demanda por veículos leves no Brasil. Por fim, o texto também faz uma comparação entre os setores industriais automobilísticas dos países dos BRICs / Abstract: This paper analyzes the recent cycle of expansion of the automobile industry (2003 - 2010), discussing the basic characteristics and determinants in this process. The paper initially discusses the dynamics and direction of FDI from the international automotive industry, with the backdrop of the globalization of this industry. We analyze the determinants of investment return of the Brazilian automotive industry. It also made an econometric exercise that aims to present the main factors that explain the recent evolution of demand for light vehicles in Brazil. Finally, the text also makes a comparison between the auto industries of the countries of BRIC / Mestre

This PhD thesis develops and tests a model of bargaining between foreign investors and domestic institutions in transition countries. For this purpose this research employs a mixed-methods research methodology combining three studies - two macro-level quantitative and one micro-level qualitative - examining various aspects of the relationships between institutional factors and the quality of inward foreign direct investment (iFDI) flows in transition economies (that is, the impact of iFDI on the host country institutional environment). Specifically, emphasizing the circular nature of the relationship between the applied variables, it attempts, firstly, to identify the impact of the institutional environment in post-Soviet and Central and Eastern European countries on the quality of FDI inflows, and, secondly, to determine whether and how this iFDI affects the quality of the host countries’ institutions. The analysis of the presence, size, and direction of the impact of iFDI is pursued through the study of foreign investors’ (FIs) nonmarket strategies with a special focus on political behavior. Despite the growing role of iFDI and of companies with FDI (especially MNEs) as one of the most important rent-seeking interest groups in many economies, the analysis of the impact of iFDI stocks and flows on the host country’s institutional environment has received much less attention than analysis of the impact of host country institutions on iFDI and has, moreover, produced mostly mixed results. This project is intended to fill this gap and to contribute to theory building on the relationships between iFDI quality, foreign investors’ political behavior, various aspects of institutional environment (including institutional voids), and institutional changes in host countries. It finds evidence for the hypothesis that certain combinations of patterns of quality of iFDI and host-country institutional variables determine foreign investors’ (FIs) political influence and political behavior and may also allow them to pursue their economic goals through manipulation of political regimes and, consequently, reshaping of the host country’s institutions in accordance with their strategic goals. The proposed model was tested quantitatively for a sample of 27 post-Socialist countries and qualitatively for the case of Ukraine. The results of all three studies provide evidence in support of this model. In particular, both quantitative panel studies provide evidence for the existence of ‘blind bargaining’ - a model depicting the cognitive situation of a foreign investor who lacks clarity on the situation he/she is in and, as a result is bound to act in conditions of extreme uncertainty due to the high degree of non-transparancy and instability of the “rules of the game” at any given moment and of their propensity for unpredictable change at any time in the future. ‘Blind bargaining’ originates from the specific state and society relationship that can be formed in neo-patrimonial host states where economic decisions are often not directed towards serving national interests, but towards supporting the personal aims of the officials in power. The first quantitative study shows and explains the attractiveness of such countries to riskier investors, who prefer relatively weak political regimes over stronger ones and who reduce their investment inputs once host states become more assertive. This model of relationships leads to the inflow of mostly ‘malign’ FDI (that is, iFDI that has a destabilizing impact on institutional competencies of recipient countries) into these economies. The second quantitative study examines the quality of iFDI flows in 12 post-Soviet states by determining the impact of attracted iFDI on local institutions, as measured by country risk indicators via a pooled regression model. The latter analysis shows that iFDI has a marginally negative effect on some individual country risk measures and a significantly negative effect on others, implying that there is a strong case for questioning the existing orthodoxy according to which the problems of transition can be overcome via increased iFDI. Given the complexity and context-specificity of foreign investors’ political behavior and its impact on host countries’ institutional capacities, this research acknowledges the need for a more targeted analysis at lower levels of aggregation. The thesis addresses this through a qualitative analysis of the relationships between foreign investors and host states in the context of one country - Ukraine. Interviews with company representatives and various experts were conducted to explore how changes in foreign investors’ bargaining power and, as a result, in their strategic choices regarding their political involvement impact the institutional environment in Ukraine. Based on the combination of empirical and theoretical insights described above, a ‘blind bargaining’ model was developed as a special case of the political bargaining model. It provides a comprehensive framework for explaining foreign investor – host state bargaining relationships in neopatrimonial transition economies and reveals several distinctive characteristics of both parties’ behavior in terms of their goals, resources, constraints, the nature of the bargaining process, strategies and outcomes. However, it is suggested that further country-specific tests are necessary to test its applicability beyond the transition countries, particularly in emerging and developing countries.

This paper provides empirical evidence on the determinants of foreign ownership in manufacturing industries. Foreign ownership, according to the theory of international production, is the result of the combination of comparative and competitive advantage. An adequate examination of the ownership structure of an industry requires the ability to establish empirically the extent to which international competitiveness of firms rests on comparative and competitive advantage. Analysis is based on a sample of the 30 largest manufacturing firms in Austria. The distinction and definition of comparative and competitive advantage as used in this paper and following from it the conclusions about the ownership structure are consistent with the empirical evidence about the share of employees in foreign-owned firms on the industry level. In particular, the classification of firms as foreign- or domestically-owned is in line with the revealed performance differences between foreign and domestic firms. / Series: Department of Economics Working Paper Series

This paper reviews and summarises the results of selected empirical studies on performance gaps between multinational enterprises and their domestic counterparts. Performance gaps arise in such fields as productivity, profitability, wages, skills, factor intensity and growth. Of central interest is the question to what extent is foreign ownership an explanatory factor of performance gaps? Empirical evidence supports the existence of performance gaps between foreign and domestic firms, yet foreign ownership is a much less important explanatory factor than normally assumed. Structural factors like industry, size and multi-nationality per se are more important. It is argued that such results are broadly consistent with those derived in the literatures on ownership change, on foreign entry and on spillovers. The concluding section discusses the normative issue whether there is a case for investment promotion policies to discriminate between firms on the basis of performance gaps by ownership. / Series: Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness"

This chapter assesses the effects of "Eastern" EU-enlargement on the race for FDI and the policy implications. We start from the proposition that the evolving production patterns of incumbent and new member states determine the need for and the justification of location policy (LP) and FDI promotion policy (FDI-PP). On the basis of empirical production patterns, it is argued that while the specialisation outcome dominates in the short run, the convergence scenario is more likely to prevail in the medium term. Therefore, old and new EU-members will compete increasingly for the same type of FDI. How EU-enlargement per se affects the spatial distribution of inward FDI is described next. The role of FDI-PPs and LPs in an enlarged EU are discussed on the basis of the convergence outcome. Since the new economics of location competition and of FDI-promotion cast serious doubt on the economic justification and effectiveness of FDI-PP, the chapter concludes with a basic dilemma in the race for FDI: namely, the greater ineffectiveness of FDI incentives in the Single Market and fewer possibilities for differentiation of LPs. The latter is due to harmonisation pressures, which calls for innovative policy strategies by central and regional authorities. / Series: Department of Economics Working Paper Series

This paper reviews and summarises the results of selected studies on performance gaps between multinational enterprises and their domestic counterparts. Performance gaps arise in such fields as productivity, technology, profitability, wages, skills and growth. While these gaps are often attributed to foreign ownership of the affiliates, the theory of the Multinational Enterprise argues that these gaps are due to being a Multinational rather than the nationality of the firm. Empirical evidence on the existence of performance gaps between foreign and domestic firms is supportive of this view: foreign ownership turns out to be a much less important explanatory factor than normally assumed. Firm-specific assets and firm characteristics like industry, size, parent country and multinationality per se are more important. Such results are broadly consistent with those derived in the literatures on ownership change, on foreign entry and on spillovers. We conclude that there is little case for foreign direct investment promotion policies to discriminate between firms on the basis of ownership. / Series: Department of Economics Working Paper Series

Based on a thorough analysis of theoretical arguments, this meta-analysis does not find a genuine empirical effect of Bilateral Investment Treaties on Foreign Direct Investment after correcting for publication selection bias. / Series: Department of Economics Working Paper Series

The Central- and East European Countries have lowered their corporate tax rates substantially in order to induce shifts of production capacity to their countries. This paper analyses empirically how inward Foreign Direct Investment (FDI) flows channeled to these countries reacts to these tax policies. We estimate a panel of 35 bilateral country-relationships over a period of 1995-2002. Results suggest a semielasticity of -2.93 which is in line with results derived in studies mainly on OECD countries. This indicates that from an individual country perspective, tax-lowering strategies have been successful in the past, yet they may not be a successful policy option for the future when privatization-related FDI will decrease. / Series: Discussion Papers SFB International Tax Coordination

Based on earlier empirical literature for Central and Eastern European Countries this paper attempts to analyze the likely impact of changes in corporate income taxes, in the endowment with production-related material infrastructure and in the institutional environment on Foreign Direct Investment (FDI) - and thus on one channel of regional development in South Eastern European Countries (SEECs). Specifically, we explore the scope for public policy to attract FDI separated by these three policy areas and across the SEECs. Our findings suggest that the potential for SEECs to attract FDI upon changes in these policy areas varies not only substantially between the three policy areas but also within the group of SEECs. Yet, as a general picture, most SEECs have substantial scope to attract FDI by improving their institutional environment as well as their infrastructure endowment. The tax instrument, in contrast, is largely exhausted as a means to attract FDI. Based on these findings some medium- and long-term policy issues are outlined.

This diploma thesis is focused on evaluation of foreign direct investment inflow to the Czech Republic, evaluation of their territorial and sectoral structure, analysis of regional distribution FDI on territory of the Czech Republic and their impacts on development of South Bohemian region.