Suchergebnisse

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect of FDI on the survival of domestic private firms in Viet Nam. We estimate the impact of both horizontal and vertical FDI and explore howthe presence of state-owned enterprises (SOEs) influences the exit hazard for private firms. The results suggest that horizontal and upstream FDI raise the exit hazard significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high SOE shares. Looking at the net effects of FDI during the period 2001–2008, we find that results vary between sectors and over time but that the overall impact has been surprising small. The paper also discusses policy conclusions and implications for empirical analyses of spillovers from FDI.

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect of FDI on the survival of domestic private firms in Viet Nam. We estimate the impact of both horizontal and vertical FDI and explore howthe presence of state-owned enterprises (SOEs) influences the exit hazard for private firms. The results suggest that horizontal and upstream FDI raise the exit hazard significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high SOE shares. Looking at the net effects of FDI during the period 2001–2008, we find that results vary between sectors and over time but that the overall impact has been surprising small. The paper also discusses policy conclusions and implications for empirical analyses of spillovers from FDI.

China's impressive development since the introduction of market-oriented reforms in the late 1970s has had a considerable impact on the world economy. After a first decade and a half of cautious experiments with liberalization, markets, and internationalization, Chinese reforms accelerated in the early 1990s and the Chinese economy started growing at a rate that has not been matched by any other country. The GDP growth rate has averaged nearly 10 percent per year since that time. China has become the world's largest exporter and one of the largest importers, with a huge domestic market driven both by export-oriented industry and nearly 1.4 billion increasingly affluent domestic consumers. It is one of the main destinations for foreign direct investment (FDI) and has also become an important outward investor. The emergence of this new economic superpower has created both opportunities and challenges for other countries. The purpose of this paper is to focus on some of the challenges and to discuss three imbalances that put pressure on the relationship between the EU and China. These concern the large deficit in Europe's trade with China, the unequal conditions for European investment in China and Chinese investment in Europe, and the EU's inability to agree on a common China policy.

The focus of the economic policy debate in most of Europe's transition economies has shifted from stabilization and recovery to growth and convergence during the last few years. This paper summarizes some of the growth experiences of East Asia, and discusses some lessons for Europe's transition economies. The relevant lessons from Asia focus on the importance of sound macroeconomic policies and an outward oriented trade regime, and highlight the need for public support for the development of trade infrastructure, including institutions for export financing, insurance, market research, and technology transfer. The Asian experiences also suggest that there is reason to be cautious regarding the objective to fix nominal exchange rates during periods of high growth.

The paper examines the relation between observed technology spillovers from foreign direct investment and proxies for the complexity of MNC technology. The results suggest that advanced MNC technologies of large technology gaps alone do not constitute unsurmountable obstacles to spillovers, but that spillovers are less likely in industries with "enclave" characteristics, where large technology gaps and high foreign shares coincide. (DSE/DÜI)

Stressing that the liberalisation of international trade and investment may lead to a geographical concentration of economic activity, this paper discusses the scope for FDI as an instrument of regional policy aimed at offsetting the centripetal forces unleashed by liberalisation. Focusing on Sweden, the paper finds no signs that FDI has contributed to reducing income and development gaps in this country. More specifically, remote provinces that qualify for EU regional support - including support for FDI - have not performed better in terms of employment, labour productivity, and education levels than remote provinces that do not qualify for such support. An exception concerns the R&D intensity of firms (both foreign and indigenous), which tends to be higher in supported than unsupported remote regions.