Since China became a net oil importer in 1993, China¡¦s remarkable economic growth has fueled a demand for oil that has outstripped domestic sources of supply. China¡¦s reliance on oil imports to satisfy its oil requirements has become the potential threat to the national security. Therefore, The Chinese government advocated the ¡§Go Abroad¡¨ strategy and support overseas investment by the Chinese state-owned oil companies to diversify China¡¦s oil supply. This paper focuses on the development of Chinese oil companies¡¦ overseas investment based on the political-economic approaches to oil security. The research problem of this paper is: Why did the Chinese government decide to drive the state-owned companies¡¦ overseas investment? In what condition did the Chinese government interfere in overseas investment activities? What is Chinese oil companies obtained in their ¡§Go Abroad¡¨ activities? What Challenge will Chinese state-owned companies¡¦ investment in overseas oil fields face? The conclusion of this paper is that the incomplete business activities which the government¡¦s intervention in the overseas investment will lead to can¡¦t ensure oil security. It can be predicted that the Chinese state-owned oil companies¡¦ will have the economic nationalism guide the direction of their overseas investment development, but they will increasingly participate in the free trade mechanism in the international oil market.

We review previous literature on productivity effects of FDI in China and find that the evidence of FDI spillovers on her economic growth rate is mixed. Take A. Marino (2000) and E-G Lim (2001) for example, they pointed out that it just happened conditionally. Thus due to the proof of its plausibility, China¡¦s experience may help underdeveloped countries fulfill their goals and become one of the most contentious issues. Based on CH(1995), this paper presents a 3-sector R&D-based endogenous growth model in an open economy with human capital accumulation and the existing stocks of technology from MNCs as well as domestic industries. And the thread of thought is that the technology growth rate will arise if technological spillovers of FDI do act in domestic R&D sectors, and that will lead to the better development of economy. The solution satisfied to the competitive equilibrium conditions shows that long-run growth rate arises from the improvement of absorptive capability and higher human capital stock, while the relationships between technology gap and steady-state growth rate are uncertain. Then, bottomed on the results of theoretical model and the existing information including Chinese 30 provincial level data for 1996-2004, this paper tests with econometric methods¡Ð panel data OLS model with fixed effect¡Ðand makes empirical analyses. In addition, absorptive capacity is weighted by human capital. As the setting of empirical model, the major focuses are on how human capital, domestic R&D, and international technological spillovers affect long-run growth rate. And the main conclusion is that the steady-state growth rates depend positively on the stock of human capital, the investment of domestic R&D, and the effects of technological spillovers via FDI whether the absorptive capacity is considered or not. While the results also show that the stock of human capital is a definitive and appropriate index to the absorptive capacity and that Chinese provincial level productivity effects of FDI are strongly confirmed by this paper. However, there are still some hinder in China for the digestion of foreign technologies, thus in the future the authority should put more emphases on increasing human capital stock and stepping up self-innovated ability.

After the cold war, the world situation has already changed drastically. The development of economic in Vietnam and China are also changing by time. In order to develop national economy and improve the living standard of the people, Vietnam and China implemented a lot of economic reform policies. These policies included opened to outside world, promoted industrial modernization, and attraction of foreign direct investment etc, and the two countries¡¦ economy have become better during several years. But because of Vietnam¡¦ reformation implemented later than that in China, her investment environment and policy is incomplete, especially the ratio of reward of foreign investments implementing direct investment were not high, the foreign investments turned into China. Therefore, my focus on the research and comparison the policy difference investment environment and FDI in Vietnam and China. I am trying to find the reason why the foreign investment China much more than in Vietnam? Why China¡¦s investment environment is much more better than in Vietnam? What is the difference from the policies of attraction of FDI in the two countries? Eventually, how the two countries¡¦ economic development in the future?

This study focuses on four Asia Pacific countries ¡V Australia, Japan, Korea, and Taiwan ¡V and analyses how the other three influence one¡¦s domestic manufacturing sectors through international trade and FDI activities. To reveal the truth that different industrial structures and absorption capacity may affect each country's efficiency to assimilate spillovers, the index of capture parameter is built in the dynamic adjustment model. By applying the unbalanced panel data from 1990-2003, it is found that both trade and FDI serve as important channels of international technology diffusion. With all sectors are considered, Korea is the country that benefits the most from international trade and FDI activities. For Australia and Japan, FDI spillovers bring more sectors with positive effects than what trade spillovers do. Taiwan, on the other hand, receives beneficial spillovers from both trade and FDI in two sectors. While the positive spillovers effect occurs in every manufacturing sector, negative relationship between domestic sectors¡¦ productivity and international spillovers can be found in some sectors as well. This phenomenon can be accounted for the lack of technology capture ability and the occurrence of market-stealing effect or asymmetric bargaining power.

<p>Throughout the latter half of the 20^th century, many developing economies adopted a set of economic policies in order to transition to market economy. Reforms were introduced either simultaneously or gradually, fuelling the debate over whether the so-called shock-therapy reforms were more beneficial or less beneficial to growth than gradual reforms. This study focuses on the role of the mode of transition in determining the effectiveness of Foreign Direct Investment (FDI) on the growth of the Gross Domestic Product (GDP). FDI is valuable for development in transition economies since it has often been a main source of investment for these types of economies. An empirical analysis was conducted using sixty transitioning countries, examining the growth up to sixteen years after the initial reform. The results indicate that there is some evidence of a difference in the effects of FDI inflows on GDP growth between the shock-therapy and gradual reformers.</p>

<p>Since the end of World War II, foreign direct investment (FDI) has been leading the international financial capital flows and has tripled in 2000s over the decade earlier. With its positive effect on economic growth of host countries via spill-overs, it became a race among countries to attract multinational enterprises (MNEs) to invest in their countries. The introduction of European common currency theoretically helps reduce the transaction costs across borders with the reduction of exchange-rate uncertainties and associated costs of hedging, facilitation of international cost comparison. Moreover, mergers and acquisitions activities (M&As) account for 60-80% of FDI flows, and most MNEs engage in both export and setting up affiliates abroad, suggesting complementarity between trade and FDI. Thus reducing cross-border distance costs would encourage MNEs to increase its M&A activities abroad, resulting in more inward FDI flows in the eurozone, especially among member states. The gravity equation is used in this paper to estimate the euro effect from the dataset of inward FDI flows of 24 countries during 1993-2007 and the result confirms that common currency stimulates more intra-eurozone inward FDI flows by approximately 58%.</p>

Most scholars believe that democracies guarantee the rule of law and provide superior institutions, which influence developing states' development trajectories, as well as firms' decisions on where to do business. However, I argue that these superior institutions are prior to the institutions of democracy and constitute the concept of governance infrastructure, and are therefore the key institutional determinants of state's economic outcomes. I find that the institutions that comprise a state's governance infrastructure (GI) are separate conceptually from the institutions that comprise democracy, and that the quality of developing states' GI 1) must reach a certain threshold before democracy positively affects economic development; 2) sends a signal to investors concerning potential transaction costs that investors may incur, ultimately determining the amount of FDI developing states' receive, while being the only domestic institutions that affect investors decision making; 3) determines the quality and provision of a state's intermediary public goods, which are an additional causal mechanism to signaling in determining a state's FDI inflows.

This thesis investigates the impact that the corporate income tax rate has on inflows offoreign direct investment (FDI) in high-income OECD countries during the periods1998-2006. The thesis has a small focus on Sweden and how this country’s policies canaffect inward FDI. Moreover, the determinants of FDI are analyzed in order to build amodel that allows to see the influence that the statutory corporate income tax rate has onthese countries. OLS regressions are used to find the degree to which certain variables,specifically the corporate tax rate, have an impact of the dependent variable (i.e.aggregate inflows of FDI). The independent variables are: GDP, skilled labour, labourcosts, economic freedom as a proxy for trade openness and property rights,infrastructure, the corporate income tax rate, dummy variables to account for timeeffects and three dummy variables for continental location targeting whethergeographical location is of relevance of not.It is concluded that the corporate income tax rate does have a significant impact on FDIinflows in OECD members for the specified period. Additionally, economic freedom,gdp and geographical location are also found to be important variables that determinethe inflows of FDI. Other variables are found insignificant in almost all regressions.

Tanzania is one of the world’s poorest countries. But it has a lot to offer and in recent years both tourists and companies have realised this. This thesis focuses on the companies and takes a closer look at the growth performance and the inflow of Foreign Direct Investments (FDI) to Tanzania. By presenting a case on the cement industry in Tanzania the thesis also provide some insight in the mechanisms of FDI on a more practical level. The findings conclude that the FDI and growth have both increased extensively since the 1990’s, but I refrain from comments on the causality of this relationship. The economic reforms that the country underwent in the 1990’s are thought to have played a key role in the development of the country. From the case presented we draw the conclusion that a FDI can affect the value chain as well as the whole country in numerous ways.

Throughout the latter half of the 20th century, many developing economies adopted a set of economic policies in order to transition to market economy. Reforms were introduced either simultaneously or gradually, fuelling the debate over whether the so-called shock-therapy reforms were more beneficial or less beneficial to growth than gradual reforms. This study focuses on the role of the mode of transition in determining the effectiveness of Foreign Direct Investment (FDI) on the growth of the Gross Domestic Product (GDP). FDI is valuable for development in transition economies since it has often been a main source of investment for these types of economies. An empirical analysis was conducted using sixty transitioning countries, examining the growth up to sixteen years after the initial reform. The results indicate that there is some evidence of a difference in the effects of FDI inflows on GDP growth between the shock-therapy and gradual reformers.