This paper focuses on Austrian outbound foreign direct investment (FDI, measured by sales of Austrian affiliates abroad) in Europe over the period 2009-2013, using a spatial Durbin panel data model specification with fixed effects, and a spatial weight matrix based on the first-order contiguity relationship of the countries and normalised by its largest eigenvalue. Third-country effects essentially enter the empirical analysis in two major ways: first, by the endogenous spatial lag on FDI (measured by FDI into markets nearby the host country), and, second, by including an exogenous market potential variable that measures the size of markets nearby the FDI host country in terms of gross domestic product. The question whether the empirical result is compatible with horizontal, vertical, export-platform or complex vertical FDI then depends on the sign and significance levels of both the coefficient of the spatial lag on FDI and the direct impact estimate of the market potential variable. The paper yields robust results that provide significant empirical evidence for horizontal FDI as the main driver of Austrian outbound FDI in Europe. This result is strengthened by the indirect impact estimate of the mark et potential variable indicating that spatial spillovers do not matter. (authors' abstract)

The purpose of this thesis is to look at economic and legal aspects of foreign direct investment (hereinafter also referred to as FDI) on the example of Egypt, which is one of the key economic and political players in the Middle East and North Africa. The paper is composed of two parts. First part is dealing with the theoretical aspects of FDI. Chapter one is introductory and explains the nature and role of FDI in global economy. Next two chapters address the important issue of definition of investment and investor. The legal definition of these two terms is usually the key issue in the international documents concerning foreign direct investment. Fourth chapter deals with the bilateral investment treaties, which are so far the most relevant instrument governing the international investment. Chapter five deals with the unsuccessful attempts to establish universal international treaty concerning investment, influence of the Lisbon treaty on given issue and international organizations in the field of international investment. Chapter six concentrates on the issue of investment treatment standards. Seventh chapter investigates the most common causes of investment disputes and eighth chapter suggests possible means of their resolution. Second practical part deals more closely with factual Egyptian...

This thesis explores three important factors that have been central to the pursuit of economic growth, particularly in the developing and emerging economies. These are Outward Foreign Direct Investment, Reverse Technology Spillovers, and Total Factor Productivity. Chapter 2 examines whether India’s Outward Foreign Direct Investment (OFDI) pattern is consistent with Dunning’s Investment Development Path (IDP) sequence using macro data over the period 1980-2010. It tests whether the level of development - proxied by GDP per capita - is the main factor explaining OFDI, and augments the IDP by studying other major determinants such as exports, Inward FDI, human capital, and R&D using the Cointegration and Error Correction Model techniques. The results support the main proposition of the IDP, but also highlight the importance of other factors. We also find that OFDI granger-causes R&D, suggesting a possibility of reverse technology spillover. Chapter 3 analyses the ‘feedback effect’ of Foreign Direct Investment (FDI) on Total Factor Productivity (TFP) growth of emerging economies via technology spillovers across borders. We study the effect of R&D spillovers resulting from Outward FDI flows from 18 emerging economies into 34 OECD countries over the 1990-2010 period, comparing the impact with that of spillovers resulting from Inward FDI flows. The result confirms that FDI enhances productivity growth in the home country; however the impact is much larger when R&D-intensive developed countries invest in the emerging economies than the other way round. The country-specific bilateral elasticities also support this outcome. Finally, Chapter 4 studies twofold stages of OFDI – determinants and effects – at a disaggregated level, using data on OFDI undertaken by 34 countries in 10 major sectors of US during 1990-2010. The main aim of this essay is to provide micro evidence in support of outcomes of Chapter 2 & 3. The first stage concentrates on the driving forces of OFDI to understand its macroeconomic determinants, by distinguishing the factors into 3 broad categories: country specific, sector specific and time specific variables. In the second stage, we then study how the home countries benefit from the OFDI that they undertake in the US, in terms of the impact of induced reverse technology spillovers. This stage entails the creation of a foreign R&D capital term as the weighted average of R&D intensity of US with the OFDI undertaken by the home countries into US. It investigates both direct and interaction effects of such R&D spillovers on the growth of home country’s TFP. The analysis also considers a lag structure to allow for a time lag in the transfer and effect of foreign R&D capital. Results for both the stages confirm the set hypotheses.

Den snabba utvecklingen i kombination med den goda ekonomiska möjligheten är en bidragande orsak till att allt fler företag söker sig till tillväxtmarknader och specifikt att genomföra en utländsk direktinvestering i. Sydafrika är ett exempel på en tillväxtmarknad som blivit ett populärt mål för utländska direktinvesteringar. Att direktinvestera i ett nytt land innebär att både hinder och risker kommer dyka upp. Syftet med denna studie är att skapa förståelse för de risker och kulturella skillnader som kan uppståhossvenska företag vid en direktinvestering i Sydafrika. För att skapa förståelse kring fenomenet har fyra intervjuer genomförts med svenska företag med kontor i Sydafrika. Utifrån dessa intervjuer dras slutsatsen att politiska och ekonomiska risker är de risker som påverkat mest vid företagens direktinvestering i Sydafrika. Vidare har företagen påverkas av kulturella skillnader som varierar beroende på företagets storlek och placering i landet.

Two literatures exist concerning cross-border merger activity's impact on domestic wages: one focusing on positive spillover-effects; the other focusing on negative bargaining-effects. Motivated by scarce theoretical scholarship spanning these literatures, we nest both mechanisms in a single conceptual framework. Considering the separate phenomena of inward and outward cross-border merger activity, our theoretical model generates three formal propositions: cross-border mergers can lead to wage increases via positive spillover-effects; and negative bargaining-effects are relatively more dominant when union market power is high, and when merging firms exhibit relatedness. Employing US firm-level panel data on wages combined with industry-level data on unionization and merger activity (covering 1989-2001), we find support for our propositions as inward and outward cross-border merger activity generate positive spillovers to wages, but are more likely to generate firm-level wage decreases when unionization rates are high and when cross-border merger activity is characterized as horizontal. Accordingly, future research on how cross-border mergers affect domestic wages should be mindful that both spillover and bargaining effects are at play, and that the degree of union market-power and the relatedness of cross-border merger activity are critical in determining which effect dominates. (authors' abstract)

Magister Legum - LLM / This work deals with the potential impacts of contract review on foreign direct investments in mining resources. The research has cited Tanzania and the Democratic Republic of Congo as the case study because the two countries have experienced the problems generated from mining contracts review programmes. Indeed, there are some variations on the nature of the environments in which the reviews were made. While in the DRC the reviews were done amid civil wars (whose root cause was wealth emanating from mineral resources), in Tanzania the reviews were done without such pressure. However, the situation seems to have not been fully solved neither in Tanzania where the reviews were done under “peaceful” environment nor in the DRC where at least the past experience could have taught them a lesson. The mini thesis is divided into four chapters each covering a distinct topic for discussion. Chapter one serves as an introduction highlighting on the mission and vision of the research. It also spotlights the scope and limitation of the research. Chapter two is a discussion on the mining sector and foreign direct investments in Tanzania and the concept of mining contracts review based on the Bomani Commission report. In fact this chapter together with chapter three are the core of the research. In chapter two facts are laid bare of how the mining operations are done in Tanzania and how the management is undertaken. While in the subsequent chapter to wit chapter three, the same is observed but now targeting the Democratic Republic of Congo. The researcher has used these two chapters to demonstrate how inefficient the African governments are in running and maintaining the mineral resources by which they are endowed plentifully. Chapter four is also formal in the sense that the researcher provides his point of view on how matters could be rectified. It is a firm view of the researcher that if the governments take heed to what is recommended, there will much improvements in the mining sector which can be recorded in shorter span of production.

Magister Legum - LLM / The objective of this study is to analyse the law relating to exploration and production of oil and gas in Tanzania in relation to the protection of FDI. The analysis will be based on the international standards for the protection of FDI. Some of these standards are contained in international instruments and some of them have attained the status of customary international law. Examples of such standards include: Fair and Equitable Treatment (FET), Full Protection and Security (FPS), non-arbitrariness and non-discrimination, among others. Some international instruments to be referred to include the 1992 World Bank Guidelines on Treatment of FDI and the CERDS.

Foreign Direct Investment (FDI) has grown exponentially in the recent past and has become one of the most important measures of globalisation. Today, Information and communication technologies (ICT) are viewed as one of the necessary conditions for the globalisation of business activities. ICT is also seen as a general purpose utility in many developed countries. Additionally, in many developing and so called emerging economies, there have been significant investments in ICT. Very recent studies show that the adoption and investment in ICT leads to economic growth and productivity gains at a macro-level. However, the link between ICT and FDI needs further exploration, especially in least developed and developing countries. This study aims to shed more light on internal factors that might explain the behaviour of FDI in emerging and developing economies and to understand if ICT capabilities of economies play a significant factor in foreign direct investments. The results from the study show that there is indeed a relationship between ICT and FDI in developing and developed countries; however, this relationship is not significant in least developed countries. Copyright / Dissertation (MBA)--University of Pretoria, 2011. / Gordon Institute of Business Science (GIBS) / unrestricted

When implemented within a favourable legislative framework, Foreign Direct Investment (FDI) can produce domestic growth-enhancing spillovers in host countries. Other potential positive effects include the provision of investment capital, the creation of local employment and the transfer of sophisticated technology or advanced knowledge. African nations in particular have been historically reliant on externally-provided funds. Prevailing low income levels, marginal savings rates and the absence of functioning financial markets necessary to provide local start-up capital continue to keep Africa reliant on foreign inflows. Considering China’s increasing financial commitments to Sub- Saharan Africa (SSA) over the last decade, this study examines the state of current Sino-African investment relationships. Specific attention is paid to the outcomes of this strategic bilateral alliance in order to determine whether or not a mutually beneficial investment relationship has evolved. The distinct nature and structure of, the motivation behind and the most significant determinants of Chinese FDI to SSA are all analysed in accordance with traditional FDI theories. A case study approach is used to establish whether China’s contemporary interest in SSA differs from historical investments and to also investigate country-specific commonalities and differences. Of particular relevance to SSA are resource-backed Chinese loans that finance major infrastructure projects in host nations. Interestingly, a lot of the Sino-African investment packages resemble similar deals struck between China and Japan in the 1970s. The results of this study indicate that China’s investment motives seem more diverse than initially expected. Resource-seeking, profit-seeking and market access-seeking reasons appear to be the most important motives. After establishing the Top- Ten recipients of Chinese FDI in SSA, these nations are then classified into three major categories: resource-, oil- or agricultural-rich nations. Undiversified resource- or oil-rich economies are found to have secured the largest shares of Chinese FDI. This study suggests that China’s contemporary “African Safari” is an unconventional way of providing financial assistance. Rather than solely supplying FDI, China finances a diverse mix of instruments, the most important being concessional loans, export credits, zero-interest loans and the establishment of Special Economic Zones. A profound difference to traditional Western investment packages is China’s non-interference approach. Accordingly, Beijing not only refrains from intervening in host countries’ domestic affairs but also refuses to attach formal conditionalties to its loans. China’s “financial safari” into Africa has produced many positive as well as negative effects in host countries. Nevertheless, it would seem that the positive effects outweigh the negative and China’s FDI could contribute to sustainable development in SSA

Many governments in developing countries including Tanzania have embarked upon an ambitious effort to conclude bilateral investment treaties. Bilateral investment treaties (BITs) are currently used as a famous means for establishing the legal framework for foreign investment in the world. BITs have been entered to by Tanzania mostly to improve the foreign investment climate and hence attract more foreign investment. Foreign investors are often worried about the quality of host countries institutions and enforceability of the law in developing countries. As a result, BITs guarantee them certain standards of treatments that can be enforced through investor state dispute settlement in international tribunals. Developing countries conclude BITs and accept restrictions on their sovereignty in the hope that the protection from political and other risks lead to increase in FDI flows. BITs aspire to protect, promote and in some instances to remove obstacles to foreign investment flows without looking at their implications on sustainable development. The purpose of this research is to examine the BITs framework in Tanzania, explores the increasing persuasiveness of these agreements in promoting FDIs and their impacts upon sustainable development. Sustainable development here refers to development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs. The thesis tries to look at what BITs say and identifies a number of key emerging development linkages and their implications on sustainable development. The thesis demonstrates that some BITs provisions have been seen to have disturbing and potentially worrying legal and policy implications for host states. Most BITs offer an avenue for dispute settlement mechanism that permits foreign investors to take host states to international arbitrations in cases where the investor alleges that the treaty’s provisions have been violated. As will be seen in this paper, the number of treaty based arbitrations has enormously increased in recent years. One of the main findings of the research is that, BITs are not mutually beneficial agreements and are one sided in favour of capital exporting countries. They are unbalance and can hardly provide the basis for a durable investment regime though they are reciprocal in appearance. Despite the fact that they establish equal rights and duties for both sides, capital flows from one side only. Thus, it is argued in this thesis that BITs lack clarity and consistency as benefits will accrue to the capital exporting countries. The thesis further argues that Tanzania faces some challenges regarding the provisions of BITs already concluded. Foreign investors are increasingly aware of the protection available under BITs, and increasingly inclined to invoke those rights in the face of undesirable government initiatives or proposals. The dissertation concludes that BITs will harbour important consequences for Tanzania and may have significant adverse implications if not well negotiated. It further reveals that BITs are not efficient in promoting sustainable development and there is a need for investment agreement to be balanced in a development dimension. Most of the treaties compare unfavourably with the model investment agreement drafted by the International Institute for Sustainable Development (IISD), and that the latter agreement provides a more development friendly template for such agreements. For that reason, Tanzania has to review its BITs so as to ensure that they are in harmony with the country’s broader social and economic principles for sustainable development. / Dissertation (LLM)--University of Pretoria, 2010. / Centre for Human Rights / unrestricted