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101. Chinese investment in Uganda: new impetus for sustainable development?

Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
Chinese investment is flowing fast into Uganda, and spreading into the agriculture and forestry sectors. The government needs to keep pace with these developments so the benefits can be shared by Ugandans. A new analysis shows that, while the jobs and new businesses created are well received, the working conditions and environmental practices of Chinese companies are often poor. Many people evicted from their land to make way for new projects have not been compensated. To hold Chinese companies to account, government agencies, with support from NGOs, must share information about these investments and introduce stronger regulation — in particular to uphold community rights. In turn, Chinese companies must be more transparent, responsible and legally compliant. With a proactive and accountable strategy for Chinese investment management, Uganda could make major gains for sustainable development.
Topic:
Development, Economics, International Trade and Finance, Foreign Direct Investment, Business, Accountability, Investment, and NGOs
Political Geography:
Uganda, Africa, and China

102. The Linkage between Foreign Direct Investment and Intra-Regional Trade within ECOWAS

Author:
Eme Dada
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
The objective of this policy brief is to inform the Ministers of Trade and Investment of Economic Community of West African State (ECOWAS) countries about the importance of the linkage between Foreign Direct Investment (FDI) and trade for developing countries. FDI is considered an important means of promoting export of the host countries. This is true of inward FDI, which comes for efficiency reasons. Conversely, there is concern that large flows of outward FDI results in a decline in the host country’s exports and loss of jobs. This in turn assumes that the exports of the source country will fall as FDI substitutes for trade.
Topic:
Development, Economics, International Trade and Finance, Foreign Direct Investment, and Economic Growth
Political Geography:
Africa, Liberia, Sierra Leone, Senegal, Mali, Guinea, Guinea-Bissau, Cape Verde, and Gambia

103. China’s Recent Engagement in Latin America and the Caribbean: Current Conditions and Challenges

Author:
Enrique Dussel Peters
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Since the beginning of the 21st century, China’s presence in Latin America and the Caribbean (LAC) has been substantial in practically all socio-economic fields: cultural, bilateral and multilateral political issues, as well as trade, foreign direct investments, academic exchanges, and other areas. The main objective of this document is to analyze the effects of China’s presence in the region in terms of sustainable and long-term development, as well as its incidence in its relationship with the United States. Thus, the document will include a diagnostic to understand some of the specificities of the LAC-China socio-economic relationship, followed by the conclusion with a series of proposals. The first section of the paper will examine five issues that are relevant to understand general and specific topics about the China-LAC relationship: 1) general geostrategic and diplomatic topics to understand current tensions between the United States and China; 2) China’s proposal of a globalization process; 3) the concept of “new triangular relationships” and LAC’s challenges given increasing tensions between the United States and China; 4) particular developments and structures in trade, foreign direct investment, financing and infrastructure; and 5) the institutional framework between LAC and China. The second part of the paper focuses on a series of recommendations attempting to deepen and extend the China-LAC relationship and integrating the United States in it.
Topic:
International Cooperation, Bilateral Relations, Foreign Direct Investment, Culture, and Multilateral Relations
Political Geography:
China, Asia, Latin America, North America, and United States of America

104. Does Participation in Global Value Chains Increase Productivity? An Analysis of Trade in Value Added Data

Author:
Shujiro Urata and Youngmin Baek
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the impact of global value chain (GVC) participation on productivity by considering both backward and forward participation. Conducting a panel estimation covering 47 countries and 13 manufacturing sectors for 1995–2011, we found that both backward and forward GVC participation contributes to an increase in the productivity of the countries involved in GVCs. In particular, benefits in the form of improved productivity are larger in cases where developing countries procure intermediate goods from developed countries, or backward participation. Our analysis indicates the importance of GVC participation for improving productivity. We argue that, in order for a country to increase GVC participation, an open, free, and transparent trade and foreign direct investment environment (which is provided by regional trade agreements); well-developed soft infrastructure (e.g. educational and legal systems); hard infrastructure (e.g. transportation and communication systems); and the availability of capable human resources are important.
Topic:
International Trade and Finance, Foreign Direct Investment, and Global Value Chains
Political Geography:
Global Focus

105. How Does Protectionist Trade Policy Interact with FDI?

Author:
Jongduk Kim and Moonhee Cho
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In this study, we investigate the question whether importing countries’ implementation of protective trade measures, such as antidumping duties, leads to changes in foreign direct investment from trading partners. That is, we examine the prevalence of “ADP-jumping FDI” across countries. We use more recent and organized non-tariff measure data provided by the WTO I-TIP and Ghodsi et al. (2017), which can be matched with other trade-related variables. Using econometrically sensible identification strategies, the Tobit and the Heckman two-stage selection models, we find out that ADP-jumping FDI to importing countries prevails rather consistently around the world. These results are also consistent with those using Poisson and linear fixed effects models.
Topic:
Foreign Direct Investment, Trade, and Protectionism
Political Geography:
Asia, Korea, and Global Focus

106. Implications of Foreign Direct Investment, Capital Formation and its Structure for Global Value Chains

Author:
Amat Adarov and Robert Stehrer
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In the age of globalisation, international trade and foreign direct investment (FDI) have become integral elements of cross-country production sharing. In this paper we empirically assess the impact of FDI, as well as capital dynamics and structure, on the formation of global value chains (GVC) and trade in value added at country and sectoral levels based on a database constructed for a sample of European countries over the period 2000-2014. The analysis reveals that inward FDI is especially conducive to the formation of backward linkages while outward FDI facilitates forward GVC participation, especially in high-tech manufacturing sectors. A particularly robust influence of FDI and capital accumulation on GVC integration is identified in the textile and clothing industry. While capital accumulation in general intensifies GVC linkages for most sectors, ICT capital appears to be especially instrumental for backward integration of electrical and transportation equipment sectors.
Topic:
Globalization, International Trade and Finance, Foreign Direct Investment, Trade, and Global Value Chains
Political Geography:
United States, Japan, and Europe

107. China: Economy, Energy and the Middle East

Author:
Paul Rivlin
Publication Date:
03-2019
Content Type:
Commentary and Analysis
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
Paul Rivlin analyzes the economic background of China's involvement in the Middle East. Several key questions arise with respect to China’s economic involvement in the Middle East: What are China’s interests in the Middle East? How far are they dominated by its energy needs? How are they affected by its relations with the United States?
Topic:
Foreign Policy, Energy Policy, Foreign Direct Investment, Geopolitics, and Economy
Political Geography:
China and Middle East

108. Competing with Whom? European Tax Competition, the “Great Fragmentation of the Firm,” and Varieties of FDI Attraction Profiles

Author:
Javier Garcia-Bernardo and Arjan Reurink
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
International tax competition is generally framed as states competing for foreign direct invest- ment (FDI), and analyses of the phenomenon draw heavily on FDI statistics. In and of themselves, however, FDI statistics are merely a quantification of the value of investment projects and tell us little about the heterogeneity of these projects and the distinct patterns of competitive dynamics between countries they generate. In this paper, we create a more sophisticated understanding of international tax competition by pointing out its variegated nature. To do so, we introduce the notion of the “great fragmentation of the firm” to distinguish between five categories of FDI: manufacturing affiliates, shared service centers, research and development facilities, intermedi- ate holding companies, and top holding companies. Using a novel combination of firm-level and country-level data, we identify for each category of FDI which European Union member states are most successful in attracting it, what macro-institutional and tax arrangements they rely on for doing so, and what benefits they receive from it in terms of tax revenues and employment creation. In this way we were able to identify five distinct FDI attraction profiles and show that, rather than being a game of all against all, tax competition in the European Union increasingly takes place amongst subsets of countries that compete for similar categories of FDI.
Topic:
Foreign Direct Investment, European Union, and Tax Systems
Political Geography:
Europe

109. Quarterly Review of the Georgian Economy ( III Quarter, 2018)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
01-2019
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

110. Quarterly Review of the Georgian Economy (IV Quarter, 2018)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
04-2019
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

111. Quarterly Review of the Georgian Economy (I Quarter, 2019)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
07-2019
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

112. Quarterly Review of the Georgian Economy (II Quarter, 2019)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

113. Can China’s Diplomatic Partnership Strategy Benefit Outward Foreign Direct Investment?

Author:
Churen Sun and Yaying Liu
Publication Date:
12-2019
Content Type:
Working Paper
Abstract:
In the context of global integration, whether a diplomatic partnership strategy can promote outward foreign direct investment (OFDI) and how it works are very important issues for China. Based on a dataset featuring China’s partnerships collected from the Ministry of Foreign Affairs website, we establish an empirical framework to assess the role of China’s diplomatic strategy in its OFDI arising from partnerships since 1993. The results show that the establishment or upgrade of partnerships has had a positive effect on Chinese firms’ decisions on OFDI for at least the short term, especially for firms with higher demand for policy guarantees from the government, such as noncentral firms and non-Beijing firms. The results also show that the increase in OFDI is concentrated in host countries with higher political risks, such as developing countries, neighboring countries, and Belt and Road countries, which is consistent with China’s diplomatic focus. Our research proves that China’s diplomatic strategy can assist firms to invest abroad.
Topic:
Diplomacy, Foreign Direct Investment, Partnerships, Belt and Road Initiative (BRI), Risk, and Economic Diplomacy
Political Geography:
China and Asia

114. Forty Years Development of China’s Outward Foreign Direct Investment: Retrospect and the Challenges Ahead

Author:
Tao Wang and Kailin Gao
Publication Date:
05-2019
Content Type:
Working Paper
Abstract:
Outward foreign direct investment (OFDI) has increasingly become an importantmethod for China to integrate into the world economy. This paper comprehensivelyreviews and analyses policy development and the changing pattern of China’s OFDIover the past 40 years. We divide the development into “restricted” (1978–1999), “relaxed” (2000–2016) and “regulated” (2017 onwards) stages. This paper alsoreviews literature on the impact of Chinese OFDI on China and host countries. Despite its generally positive ef ects, large-scale and unbalanced OFDI activitieshave alarmed Chinese policy-makers. Both developing and developed host countrieshave expressed their concern over national security and the misbehavior of someChinese overseas enterprises. Therefore, greater supervision and adjustment fromquantity to quality growth is necessary for the future development of China’s OFDI.
Topic:
Development, History, and Foreign Direct Investment
Political Geography:
China and Asia

115. Trade And Foreign Direct Investment Nexus In West Africa: Does Export Category Matter?

Author:
Chukwuka Onyekwena, Idris Adermuyiwa, and Eberechukwu Uneze
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Centre for the Study of the Economies of Africa (CSEA)
Abstract:
This paper examines the effect of inward FDI in West Africa on exports to EU countries. It investigates from a host country perspective, the impact of FDI on different export categories: primary, intermediate, and final goods.
Topic:
Economics, Foreign Direct Investment, European Union, Exports, and Trade
Political Geography:
Africa and West Africa

116. Financing Energy Access in Sub-Saharan Africa

Author:
Nicola Bilotta and Lorenzo Colantoni
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The electrification of Sub-Saharan Africa has traditionally suffered from a lack of adequate investments, given the scarcity of domestic funds and the higher regional risk perceived by foreign investors. And yet, electrification of the continent has accelerated lately, driven by innovative financing instruments that fit the African framework. Such tools as aggregation, securitization and guarantee instruments reduce risk premiums, thus increasing the attractiveness of the sector and making it easier for international institutions to provide back-up funding for private, local and decentralized projects. Critical in this regard has been Africa’s FinTech system, which enables forms of mobile payment and micro-credit access, resulting in innovative business models. Such sets of tools will be then fundamental to maintaining the current trends and, eventually, reach the long-awaited universal access to energy for those in Sub-Saharan Africa. Paper prepared in the framework of the IAI-Eni Strategic Partnership, December 2018.
Topic:
Climate Change, Energy Policy, Natural Resources, Foreign Direct Investment, and Sustainable Development Goals
Political Geography:
Africa and Europe

117. Russia’s National Oil Champion Goes Global

Author:
Edward C. Chow and Andrew J. Stanley
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
After the Soviet Union collapsed and Russia was roiled by political and economic chaos, many state-owned assets were privatized based on political connections and corrupt practices. The oil sector was a particularly attractive, but by no means the only, target for these privatizations. By the end of the 1990s, almost all of Russia’s oil production was privately owned. In spite of continued nontransparency, the oil sector began to resemble a competitive market with private investors introducing Western technology, financial accounting, and operating and management practices. It also started to attract major foreign investments. The remaining state oil assets were managed by a sleepy state enterprise named Rosneft that, in spite of its name (Russian Oil), produced less than 5 percent of Russia’s oil. Today, majority state-owned Rosneft produces almost half of Russia’s oil. Its daily oil production of 4.6 million barrels, according to its last reported quarterly results, is double that of the world’s largest oil company by market capitalization, ExxonMobil, which last reported daily liquids production of 2.3 million barrels. Rosneft’s rapid rise coincided with the rule of Vladimir Putin, who first became president of Russia in 2000. Its production increases were built largely on the backs of controversial acquisitions of assets previously held by private companies such as Yukos, TNK-BP, and Bashneft. Rosneft’s acquisition spree accelerated after Putin’s close associate and Russia’s then-deputy prime minister Igor Sechin became chairman of its board of directors in 2004. Sechin left government in 2012 to take over as Rosneft’s chief executive officer. Rosneft’s board of directors is now chaired by former German chancellor Gerhard Schroeder. Rosneft’s transformation as Russia’s national oil champion is consistent with Putin’s policy of regaining state control over the commanding heights of the Russian economy, which is more reliant on oil income today than the Soviet Union ever was. Rosneft is Russia’s largest taxpayer and contributed a quarter of government revenue in 2014. Until recently, Rosneft concentrated mainly on consolidating its dominance over the domestic oil patch. It is also Russia’s leading refiner and is increasing natural gas production for direct sales to domestic gas users, producing 67 billion cubic meters in 2016. In 2014, Russia was hit by the twin shocks of a global oil price collapse and Western economic sanctions enacted after its aggression against Ukraine in the Donbas region and annexation of Crimea. These developments affected Rosneft severely since it involved the value of the commodity it produces and sells and restricted Rosneft’s access to international financing when it was heavily indebted from the aforementioned acquisitions. A normal company might hunker down, repair its balance sheet, and wait for external conditions to improve. Instead Rosneft has done the exact opposite and expanded its international business aggressively. As part of the 2014 U.S.-led sanction efforts, Igor Sechin, as the leading figure of Russia’s largest petroleum company and his having “shown utter loyalty to Vladimir Putin,” was directly sanctioned. Further Russian sanctions enacted by Congress in 2017 called on the U.S. Department of the Treasury to submit a detailed report on senior political figures, oligarchs, and parastatal entities as determined by their “closeness to the Russian regime and their net worth.” While the unclassified version of the report released to Congress on January 29 included Igor Sechin, the report was poorly received and largely regarded as nothing more than a “rich list” by Russian experts. However, the report also contains classified annexes, including a list of parastatal entities and supporting analysis, which by definition would have included Rosneft. Although Rosneft’s rapid international expansion is too recent to assess definitely, this paper describes some of Rosneft’s overseas ventures and explores possible motivations, economic and political, behind them.
Topic:
Energy Policy, Oil, Foreign Direct Investment, Sanctions, Gas, Transparency, and Private Sector
Political Geography:
Russia, United States, Europe, and Eastern Europe

118. Volume 68 Issue 2

Author:
Haluk Alkan
Publication Date:
06-2018
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Economics, International Political Economy, Foreign Direct Investment, Economic Growth, Political Science, and Banking
Political Geography:
Turkey and Global Focus

119. Quarterly Review of the Georgian Economy (IV Quarter of 2017)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
04-2018
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

120. Quarterly Review of the Georgian Economy ( I Quarter, 2018)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
07-2018
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

121. Quarterly Review of the Georgian Economy ( II Quarter, 2018)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
10-2018
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The Quarterly Review of the Georgian Economy is an electronic publication of the Georgian Foundation for Strategic and International Studies (Rondeli Foundation), which aims at informing readers about the ongoing processes within the country’s economy. The review is based on data of official statistics and on expert estimates.
Topic:
Debt, International Trade and Finance, Foreign Direct Investment, Budget, Employment, Economic Growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

122. The three stages of China’s ODI development

Author:
Bijang Wang and Kailin Gao
Publication Date:
11-2018
Content Type:
Policy Brief
Abstract:
In 2016, China became the world’s second-largest outward investor after the United States, with US$196.2 billion of outward direct investment (ODI) flows. China’s foray into ODI developed in three stages, moving from a ‘restricted’ to a ‘relaxed’ and most recently to a ‘regulated’ approach. Today’s strengthened ODI regulations correct imbalanced ODI practices of earlier eras, but some challenges remain. Before 2000, capital shortages prompted China to invite capital inflows and restrict capital outflows. Chinese enterprises had to apply for approval to invest overseas on a case-by-case basis, which minimised overseas investment. By the end of 1999, China ranked 23rd in the world for outward investment with an ODI stock of US$27 billion, representing 0.4 per cent of the global total.
Topic:
Foreign Direct Investment, Investment, and Economic Development
Political Geography:
China and Asia

123. The Development of U.S.-China Trade and the Result of Conflict

Author:
Ma Tao
Publication Date:
06-2018
Content Type:
Working Paper
Abstract:
The very success of globalization has flourished since World War II. The benefits of economic globalization are not evenly distributed among countries, especially among different groups within a country. Before the financial crisis in 2008, as the major promotors of globalization, developed countries intensified their internal contradictions. So populism, protectionism and isolationism are rising in many developed countries, which are the main features of anti-globalization. Brexit happened against the polls in 2016, in large part, because of the migrant crisis tipping the British towards protection of its borders. In the beginning of his presidency, Donald Trump declared to withdraw from TPP, build Mexican border wall, renegotiate NAFTA and so on. Trump’s protectionism policies may be gradually implemented in 2017. Going on like these, the tide of anti-globalization may be further strengthened in the future.
Topic:
Globalization, Bilateral Relations, Foreign Direct Investment, Trade Wars, and Trade
Political Geography:
China, Asia, North America, and United States of America

124. Country-Risk Rating of Overseas Investment from China (2018)

Author:
CROIC-IWEP
Publication Date:
01-2018
Content Type:
Working Paper
Abstract:
China's outbound direct investment hit a new high in 2016, reaching $196.15 billion, making the country the world's second-largest overseas investor. The volume of its outbound direct investment increased by 34.7% year-on-year in 2016 and accounted for 13.5% of the world's total — the first time it exceeded 10%. Since 2003, when the Ministry of Commerce joined hands with the National Bureau of Statistics and the State Administration of Foreign Exchange to start releasing authoritative investment data annually, China's outbound direct investment has kept increasing for 14 consecutive years. From 2002 to 2016, the annual average growth of its outbound direct investment reached 35.8%. In 2016, China's outbound direct investment once again exceeded the foreign direct investment it received, making it a net capital exporter for two consecutive years. Meanwhile, its outbound direct investment stock hit $1.35739 trillion at the end of 2016, the 6th largest in the world, two notches up compared with in 2015. In 2016, China had the most overseas M&A deals in history in terms of both number and value of M&A deals. In the future, China is expected to bring out more of its investment potentials and build a win-win cooperative relationship with other countries following its economic transition and upgrading, rising competitiveness of Chinese enterprises in overseas markets and steady advancement of the Belt and Road Initiative.
Topic:
Economics, Foreign Direct Investment, and Investment
Political Geography:
China and Asia

125. China’s Relationship with Chile: The Struggle for the Future Regime of the Pacific

Author:
Evan Ellis
Publication Date:
11-2017
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Though superpower diplomacy dominated coverage of the Asia Pacific Economic Cooperation forum (APEC) leaders summit in November, China’s upgrading of a free-trade agreement with Chile served to highlight the strength of an economic and political relationship that it has built with the country, and the influential position Chile currently occupies in shaping Chinese engagement with Latin America.
Topic:
International Trade and Finance, Treaties and Agreements, Bilateral Relations, Infrastructure, and Foreign Direct Investment
Political Geography:
China, Asia, South America, and Chile

126. Nation-Branding: the Case of Russia

Author:
Anna Velikaya
Publication Date:
08-2017
Content Type:
Commentary and Analysis
Institution:
Rethinking Russia
Abstract:
Russia seems to have finally realized in recent years that nation branding, seen as a set of actions to improve country’s image abroad, is a form of investment, not a cost. In order to analyze the Russian approach to nation branding, it is necessary to highlight several dimensions: economic, scientific, cultural, sport, media, and development.
Topic:
Foreign Policy, Foreign Direct Investment, Public Opinion, Economy, Soft Power, and Cultural Diplomacy
Political Geography:
Russia and Eurasia

127. Intra-Regional Foreign Direct Investment In SADC: South Africa and Mauritius Outward Foreign Direct Investment

Author:
Onelie B. Nkuna
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This paper looks at intra-SADC (Southern African Development Community) Foreign Direct Investment (FDI) and focuses on Mauritius and South Africa’s outward FDI. Data from 1999 to 2010 are collated and qualitative analyses conducted. The study reveals that Mauritius’ outward FDI was mainly in the service sector and largely went to Madagascar, Seychelles and Mozambique, which were also the country’s main trading partners, except for Botswana. Meanwhile, South African investments were mainly in Mauritius, Tanzania and Mozambique, while the country’s main trading partners were Botswana, Zambia, Zimbabwe, Swaziland and Angola. The study also found the following to be potential drivers of Mauritian and South African outward investments, and hence intra-SADC FDI flows: geographical proximity, market access, liberalized markets, stable macroeconomic and political environment, natural resource availability, and policy and institutional framework. Graphical analyses and simple correlations reveal that trade and FDI are positively correlated for Mauritius and South Africa’s outward investment, suggestive of a complementarity relationship.
Topic:
Economics, International Political Economy, International Trade and Finance, Regional Cooperation, Foreign Direct Investment, and Regional Integration
Political Geography:
Africa, South Africa, and Mauritius

128. Foreign Investment in Cuba: From Conflict to Resolution

Author:
Rafael-Andrés Velázquez-Pérez, Miguel-Ángel Michinel-Álvarez, Margaret Crahan, and Gabriel Vignoli
Publication Date:
01-2017
Content Type:
Book
Institution:
Institute for Latin American and Iberian Studies at Columbia University
Abstract:
This manuscript originates from research initiated in 2010 at the University of Vigo in International Private Law with a specific focus on International Investment Law. The objective was to analyze the impact of the new paradigm of sustainability on this sphere of the law, with an emphasis on developing countries, and more specifically Cuba. This line of research has resulted in several publications intended for a Spanish-speaking scientific-juridical audience. Yet there is no scholarly work directly aimed at US investors as a prioritized target group. Being the first single Foreign Direct Investor in the world, and given its geopolitical and economic proximity, the US is bound to play a prime role in the field of investments in Cuba—despite political complications. As a consequence, we opted for a bilingual monograph on this topic with a dual purpose. The first part of the book, which is aimed at reaching a wide audience, examines the role played by foreign investment in Cuba and the country’s interest in attracting it by providing investors with a modern, stable, and coherent legal framework that is in line with current international standards. The second part of the book delves into specific technicalities of international investment law— with an emphasis on the conflict resolution system, which finds in arbitrage its main mechanism. This part, technical in nature, is not directly aimed at potential investors as much as their legal advisers, legal firms, arbitrators, and specialized scholarly communities—without whose input the success of foreign direct investment would be impossible. The text also engages critically with the specificities of US-Cuba relations in the context of Foreign Direct Investment. As shown in the first part of this monograph, it seems clear that the strategies pursued by different US administrations have thus far failed. It would be to the US’ benefit to forego the current policy of confrontation in favor of one of cooperation, as exemplified by the approaches taken by Latin America, xiv Europe, and Canada. The US should not lag, if it wants to attain a strategic position in the global repositioning toward the developing Cuban market. There is a need for targeted diplomatic and legislative efforts aimed at strengthening cooperation between the two countries in terms of investment. Among the challenges is the absence of a Bilateral Investment Treaty (BIT) between Havana and Washington. The obstacles faced by the Trump administration in the political, diplomatic, and financial sphere indicate that excessive isolationism and protectionism are not only counterproductive from a financial viewpoint, but they also imply for the US a loss of sovereignty and a diminished capacity to influence the international context. Should the US not change its current policy, it will be outperformed by other international actors such as the European Union and the BRICS (Brazil, Russia, India, and China) as investors in Latin America and in Cuba.
Topic:
Treaties and Agreements, Bilateral Relations, Foreign Direct Investment, Law, Economy, and Legislation
Political Geography:
Cuba, Latin America, Caribbean, and United States of America

129. Zambia’s Bilateral Investment Treaties Review and Evaluation

Author:
Joseph Simumba
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Zambia attracts foreign direct investments (FDI) from many countries that vary in terms of income levels and geographical location. In the last two decades, the country witnessed a rapid increase in bilateral investment treaty (BIT) activities triggered by massive economic liberalisation of the early 1990s. From a single ratified BIT with Germany prior to 1990, there are now 31 BITs locally called Investment Promotion and Protection Agreements (IPPAs) of which two (2) are ratified, eleven (11) are signed and eighteen (18) exist in draft form. However, BIT activities in Zambia have plummeted in line with a post 2010 global slowdown, a situation linked to rising uncertainty caused by a surge in the number of investment treaty-based cases at international tribunals. Foreign investors are suing host states over disputes ranging from direct expropriation to claims of adverse business regulation especially in the energy and extractives sectors. This study reviews Zambia’s BITs and evaluates their impact on the accumulation of FDI stocks using data collected from the Private Investment and Investor Perception Surveys conducted by Bank of Zambia, Central Statistical Office and Zambia Development Agency for the period 2007-2014 were data is publicly available. The findings show that BITs significantly matter for accumulation of FDI stocks in Zambia. The group of countries with a ratified BIT (Germany and Switzerland) maintain 1.6 times more FDI stocks than the corresponding group with only signed BITs controlling for income groups and geographical location and their interactions based on the World Bank classification. The groups of countries with a draft or without a BIT maintain FDI stocks that are less than four times lower than FDI stocks maintained by the group of ratified BITs countries. This evidence is robust to several potential confounders of the relationship between BITs and FDI stocks. Therefore, ratified BITs work for Zambia’s FDI stocks, a result that challenges some pessimism against IPPAs in Zambia.
Topic:
Treaties and Agreements, Foreign Direct Investment, Economy, and Investment
Political Geography:
Africa and Zambia

130. Türkiye'de Terör ve Doğrudan Yabancı Yatırım: Saklı Eşbütünleşme ve Asimetrik Nedensellik İlişkisi.

Author:
Mehmet Zeki Ak and Veysel Inal
Publication Date:
12-2017
Content Type:
Journal Article
Journal:
Bilgi
Institution:
Sakarya University (SAU)
Abstract:
Bu çalışmada Türkiye’de terörizm ve doğrudan yabancı yatırım arasındaki ilişkiler eşbütünleşme ve nedensellik testleriyle, 1980-2015 dönemi için incelenmiştir. Seriler arasındaki ilişkiler, mevcut literatür-den farklı olarak önce Hatemi-J ve Irandoust (2012) tarafından geliştirilen, saklı eşbütünleşme yaklaşımıyla incelenmiştir. Bu analiz sonucunda terörizm ve doğrudan yatırımlar arasında eşbütünleşme ilişkisinin olmadığı belirlenmiştir. Daha sonra, seriler arasındaki asimetrik neden-sellik ilişkileri Hatemi-J (2012) yöntemiyle araştırılmıştır. Bu analiz sonucunda ise literatürdeki mevcut çalışmaların bulgularına ters düşecek biçimde terör eylemleri ile ekonomik büyüme arasında herhangi bir nedensellik ilişkisi olmadığı tespit edilmiştir. Bütün bu bulgular birlikte değerlendirildiğinde, Türkiye özelinde terörist saldırıların doğrudan yabancı yatırım davranışlarını etkilemediği sonucuna ulaşılmaktadır.
Topic:
Terrorism, Foreign Direct Investment, and Economic Growth
Political Geography:
Turkey and Middle East

131. Chinese Investment in Critical U.S. Technology: Risks to U.S. Security Interests

Author:
Council on Foreign Relations
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Chinese firms, both private and state-owned, have in recent years invested billions of dollars in the U.S. technology industry, raising concerns that a powerful rival has gained or could soon gain access to sensitive and, in some cases, critical technologies that underpin American military superiority and economic might. At the workshop entitled “Chinese Investment in Critical U.S. Technology: Risks to U.S. Security Interests,” held in San Francisco, on July 18, 2017, CFR convened nearly thirty current and former government officials, academics, bankers, investors, and corporate executives to explore whether the large and growing early-stage Chinese investment in critical U.S. technology poses a threat to U.S. national security, and, if so, to outline policies that mitigate the risks of unbridled Chinese investment and to bolster U.S. competitiveness.
Topic:
Security, Science and Technology, Foreign Direct Investment, and Cybersecurity
Political Geography:
United States, China, Asia, and North America

132. Writing New Rules for the U.S.-China Investment Relationship

Author:
Jennifer M. Harris
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Chinese outbound investment is on the rise, and much of it is finding its way into the United States. Be- tween 2010 and 2015, China’s foreign direct investment (FDI) inflows to the United States grew by an average of 32 percent annually.1 Within the past two years alone, Chinese foreign investment inflows to the United States increased four-fold, and available data suggests 2017 will see the second highest annual investment on record, after 2016.2 This is not a two-way street: the United States and other foreign investors do not enjoy similar open market access in China. China maintains a dizzying assortment of formal and informal barriers to for- eign investment—from outright restrictions and quotas to mandatory joint ventures, forced localization measures, and domestic licensing regimes. Despite years of negotiations, these barriers are, if anything, growing more cumbersome in many sectors. U.S. firms paint a darkening picture of the business climate they face in China. U.S. FDI in China has slowed considerably in recent years: after growing roughly 180 percent from 2002 to 2007 (albeit from a low baseline), U.S. FDI flows into China have declined since 2012.3 The one-way surge of Chinese investment into the United States comes against a backdrop of strategic mistrust between Washington and Beijing. Ongoing accusations of state-sponsored cyber predation of U.S. firms, Beijing’s increasing aggressiveness over territorial disputes, its systematic efforts to under- mine the U.S. alliance system in Asia, and mounting tensions over North Korea all contribute to a dark- ening mood in the U.S.-China relationship. And, like so much involving China, this investment is simply different. Rarely, if ever, has the United States seen an increase in investment of this magnitude—espe- cially from a non-ally and especially from one where the lines between state ownership and private own- ership are so inherently blurred. For all the concern surrounding Japanese investment in the United States in the 1980s—coming as it did amid fierce economic competition—those debates ultimately re- mained under the umbrella of the U.S.-Japan military alliance. All of this raises questions about whether the United States needs to tighten its stance on Chinese in- bound investment; proposals to that effect have bipartisan support in the Congress. The Donald J. Trump administration has signaled its desire for a tougher approach in its economic dealings with China, which U.S. businesses seem to welcome. One foundation for such an approach is the principle of reciprocity. Roughly two dozen sectors in China—construction, mining, banking, insurance, and so on—remain effectively off-limits to American investment, because the Chinese government protects its domestic companies through regulations and financial subsidies. Even in sectors that technically allow foreign investment, discriminatory industrial policies tilt the playing field in favor of Chinese firms. Until this changes, Washington would be justi- fied—even obligated—to limit Chinese investment in the U.S. market. However, U.S. policymakers do not have a consensus on what a policy of reciprocity would entail, and different policy interpretations could spell quite different economic and foreign policy consequences for the United States. The United States should aim for a version of reciprocity that allows it the flexibility to maximize pressure on the broad range of Chinese industrial policy concerns while leaving a clear route to negotiations. The United States should also encourage European and other Western countries, many of which are seeing similar increases in Chinese investment, to adopt this new approach.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Foreign Direct Investment
Political Geography:
United States, China, Asia, and North America

133. A Deeper Look at China’s “Going Out” Policy

Author:
Hongying Wang
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
In recent years, the world has seen rapid growth in China’s financial reach beyond its borders. Following the announcement of a “going out” strategy at the turn of the century, many Chinese enterprises have ventured to invest and operate abroad. After three decades as primarily a recipient of foreign direct investment (FDI), China has now emerged as a major FDI-originating country as well. Much of China’s foreign aid is closely entangled with its outgoing FDI, and it has also been rising. Since 2013, the Chinese government has been pushing for a new One Belt, One Road (OBOR) initiative, aiming to connect China with countries along the ancient Silk Road and a new Maritime Silk Road via infrastructure investment. In addition, since 2009, China has actively promoted the internationalization of its currency, the renminbi (RMB). There has been a great deal of anxiety about the motivations behind China’s going out policy and its possible international consequences. Many view it as an expression of China’s international ambition and a strategy that threatens the existing international order; however, that is not the whole story. An equally important but often less understood issue is the role of China’s domestic politics and political economy in shaping its new activism in foreign financial policy. Moreover, it is unclear how successful the going out policy is. The complexity of China’s going out policy was the topic for a recent round table discussion hosted by the Centre for International Governance Innovation and the Foreign Policy Institute at the School of Advanced International Studies of Johns Hopkins University in Washington, DC.[1] Participants discussed a number of issues around two broad themes: the impact of domestic political economy on China’s foreign economic policy and the challenges for China’s external financial strategy — in particular, its OBOR initiative.
Topic:
Markets, Political Economy, Monetary Policy, Infrastructure, Foreign Direct Investment, and Financial Markets
Political Geography:
China

134. Costa Rica and the United States: An Enduring Partnership

Author:
S. Fitzgerald Haney
Publication Date:
04-2016
Content Type:
Working Paper
Institution:
The Ambassadors Review
Abstract:
The United States’ strong partnership with Costa Rica has deep roots: our countries established diplomatic relations in 1851, when Costa Rican Minister Felipe Molina presented his credentials in Washington, and a Treaty of Friendship, Commerce, and Navigation was finalized the following year. This early cooperation provided a strong foundation for a bilateral relationship that has only gained depth and breadth, and which continues to grow, evolve, and reveal new sources of strength. Today, the United States is Costa Rica’s largest trading partner and greatest source of foreign investment. Costa Rica’s stability, natural beauty, and proximity to the United States make it a favorite destination for US citizens—tourists, investors, and residents alike—further deepening the connections between our countries. Our shared values, long history of close cultural and commercial ties, and growing cooperation on regional initiatives make Costa Rica a valued strategic partner as the United States promotes prosperity, good governance, and security—the three pillars of the US Strategy for Engagement in Central America (the Strategy)—throughout the region.
Topic:
Diplomacy, Bilateral Relations, Foreign Direct Investment, and Governance
Political Geography:
Costa Rica and United States of America

135. Journal of Public and International Affairs 2016

Author:
Megan Campbell, Geoff Cooper, Kathryn Alexander, Aneliese Bernard, Nastasha Everheart, Andrej Litvinjenko, Kabira Namit, Saman Rejali, Alisa Tiwari, and Michael Wagner
Publication Date:
05-2016
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
It is rare to find a journal that examines women’s participation in South Sudan in one chapter and the exploitation of outer space resources in the next; that dissects the effects of Chinese investment in Sub-Saharan Africa and demystifies the Ferguson effect. But the Journal of Public and International Affairs is not your average journal. It represents the very best of what graduate-level public policy students have to contribute to the pressing policy debates of today. It is wide-ranging in subject matter and trenchant in its recommendations. Founded in 1990, but with an ancestor publication dating back to 1963, the JPIA is based on the notion that students of public policy have important things to say about public affairs and that careful analysis and targeted critique can pave the way for meaningful change and progress. The graduate students published in this year’s JPIA combine practical experience from around the world with intensive academic study. They have spent the last year diving deep into the issues they are passionate about and have all been challenged by the need to move past descriptive analysis and towards concrete solutions. These papers represent the best of their scholarship.
Topic:
Security, Gender Issues, Government, Regional Cooperation, International Affairs, Foreign Direct Investment, Counter-terrorism, Women, Inequality, Protests, Policy Implementation, Rural, and Sanitation
Political Geography:
China, Iran, Middle East, India, Central America, West Africa, North America, South Sudan, Sahel, and United States of America

136. Brazilian Foreign Policy and Investments in Angola

Author:
Pietro Carlos De Souza Rodrigues and Sonia Delindro Goncalces
Publication Date:
06-2016
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The literature has given increasing attention to the role played by Brazilian transnational companies in its international insertion. In this context, special attention has been given to Brazilian private activities in Africa and, in particular, in Angola. Some countries in Sub-Saharan Africa are understood as potential markets for investments, especially given the similarities of the challenges for development and expertise of some of the Brazilian firms in sectors as agriculture, mining and civil construction. The objective of this paper is to try to capture possible relations between Brazil-Angola bilateral relations over the international operations of Brazilian firms. Our argument is that the business environment to investments has been favoured by a simultaneous international political alignment, as a consequence of the changes in the Brazilian foreign policy orientation.
Topic:
Foreign Policy, Agriculture, International Cooperation, Foreign Direct Investment, Mining, and transnationalism
Political Geography:
Africa, Brazil, South America, and Angola

137. Commitment to Development Index 2014

Author:
Owen Barder and Petra Krylová
Publication Date:
01-2015
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The Commitment to Development Index ranks 27 of the world's richest countries on their policies that affect more than five billion people living in poorer nations. Moving beyond comparing how much foreign aid each country gives, the CDI quantifies a range of rich country policies that affect poor people.
Topic:
Development, Poverty, Foreign Aid, and Foreign Direct Investment

138. Investor-State Arbitration Between Developed Democratic Countries

Author:
Armand de Mestral
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Investor-state arbitration (ISA), also known as Investor-State Dispute Settlement (ISDS), by which a foreign investor is entitled to sue a state for damages resulting from the alleged violation of an applicable bilateral investment treaty or an investment chapter in a regional trade agreement, has come under scrutiny in many parts of the world. But in no countries has it been subject to greater scrutiny and challenge than in developed democracies. First in Canada and the United States as a result of the adoption of NAFTA Chapter 11, subsequently in the European Union as a result of the adoption of the International Energy Charter, and latterly in other countries such as Australia, critics have alleged that ISA grants an undue privilege to foreign investors whose complaints should be heard by domestic courts instead of panels of international arbitrators. Availability of ISA is in fact worldwide, due to a network of more than 3,200 investment treaties; criticisms have been voiced in different parts of the world and various proposals for change have been made. The criticisms in developed democracies have become sufficiently strong for it to be necessary to raise the question of whether recourse to ISA is appropriate in any form in developed democracies. Armand de Mestral’s paper is the first in the Investor-State Arbitration project. The series of papers will be prepared by leading experts from a number of developed democracies. Each will review the experience of ISA within specific jurisdictions, with a view to understanding the debates that have occurred in each one. The focus of the debate is on developed democracies, but the implications for the whole international community are very much in mind.
Topic:
Development, Energy Policy, Treaties and Agreements, Bilateral Relations, Foreign Direct Investment, and Democracy
Political Geography:
United States and Canada

139. Unconventional Monetary Policy, Spillovers, and Liftoff: Implications for Northeast Asia

Author:
Marcus Noland
Publication Date:
11-2015
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
Unconventional monetary policy (UMP) has had predictable effects. How exit plays out is scenario-dependent. Quantitative easing has had the predictable effect of encouraging currency depreciation and some partner countries may have attempted to offset these exchange rate effects. Korea presents a particularly interesting case: it is relatively small and relatively open and integrated, in both trade and financial terms, with the United States and Japan, two practitioners of UMP. Authorities have acted to limit the won's appreciation primarily against the currency of China, not the US or Japan. Nevertheless, Korea's policy is a source of tension with the US. Under legislation currently being considered, the currency manipulation issue could potentially interfere with Korean efforts to attract direct investment from the US and create an obstacle to Korea joining the Trans-Pacific Partnership.
Topic:
Economics, International Trade and Finance, Political Economy, Monetary Policy, and Foreign Direct Investment
Political Geography:
Asia

140. Japanese Investment in the United States: Superior Performance, Increasing Integration

Author:
Theodore H. Moran and Lindsay Oldenski
Publication Date:
02-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Japan is reemerging as the most important source of foreign direct investment (FDI) in the United States. In 2013 Japanese firms were the largest source of new inflows of FDI into the United States for the first time since 1992, injecting almost $45 billion of fresh investment into the US economy in that year alone. Moran and Oldenski show how Japanese investment in the United States differs from that of other countries along several dimensions. These differences not only make FDI by Japanese firms especially valuable but point to some important policy goals for attracting it. Although the automotive sector is the single largest industry for Japanese investment in the United States, the focus should not be on competing to attract the auto industry in particular nor should any active industrial policy of "picking winners" be pursued. Japanese investment is unique because of its research and development intensity, manifested across a number of industries in which Japanese multinationals invest other than automobiles. US policy should focus on reinforcing and expanding the factors that attract high-performing firms and high-value production stages to the United States, regardless of industry.
Topic:
Development, Economics, Foreign Direct Investment, and United States
Political Geography:
Japan

141. Chinese Investment and CFIUS: Time for an Updated (and Revised) Perspective

Author:
Theodore Moran
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
For more than a decade, China has complained about what it maintains has been a pattern of erratic and politicized treatment of Chinese investors when they attempt to acquire US companies. The Chinese want the Committee on Foreign Investment in the United States (CFIUS) to be more open and transparent in its rulings and to not discriminate against Chinese firms. The United States is not likely to accede to these demands in any formal or legal manner. Moran proposes practical steps to address the concerns of Chinese investors without diluting CFIUS procedures. He provides a national security threat assessment filter, which allows Chinese investors—like investors of all nationalities—to determine when their proposed acquisitions might pose a genuine threat and when any such threat is simply not plausible. He also suggests that first-time Chinese investors seek expert counsel to overcome the secrecy surrounding CFIUS objections to figure out how to proceed with problematic acquisitions.
Topic:
Economics, Markets, and Foreign Direct Investment
Political Geography:
United States

142. The Influence of Foreign Direct Investment, Intrafirm Trading, and Currency Undervaluation on US Firm Trade Disputes

Author:
J. Bradford Jensen, Dennis P. Quinn, and Stephen Weymouth
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
The authors investigate a puzzling decline in US firm antidumping (AD) filings in an era of persistent foreign currency undervaluations and increasing import competition. Firms exhibit heterogeneity both within and across industries regarding foreign direct investment (FDI). Firms making vertical, or resource-seeking, investments abroad are less likely to file AD petitions and firms are likely to undertake vertical FDI in the context of currency undervaluation. Hence, the increasing vertical FDI of US firms makes trade disputes far less likely. Data on US manufacturing firms reveals that AD filers generally conduct no intrafirm trade with filed-against countries. Persistent currency undervaluation is associated over time with increased vertical FDI and intrafirm trade by US multinational corporations (MNCs) in the undervaluing country. Among larger US MNCs, the likelihood of an AD filing is negatively associated with increases in intrafirm trade. The authors confirm that undervaluation is associated with more AD filings. However, high levels of intrafirm imports from countries with undervalued currencies significantly decrease the likelihood of AD filings. The study also highlights the centrality of firm heterogeneity in international trade and investment in understanding political mobilization over international economic policy.
Topic:
Economics, International Political Economy, International Trade and Finance, and Foreign Direct Investment
Political Geography:
United States of America

143. International Investment Law and the European Union: Towards a New Generation of International Investment Agreements

Author:
Catharine Titi
Publication Date:
07-2015
Content Type:
Journal Article
Abstract:
For about half a century, the European investment treaty model has been associated with European Union (EU) member states’ bilateral investment treaty practice, often referred to as their ‘best practices’. Member state bilateral investment treaties, which are liberal instruments strongly protective of investor interests, have remained relatively unchanged over the years, in contrast with their North American counterparts, which have come to represent a new type of investment treaty, cognizant for the first time of the contracting parties’ right to regulate. With the entry into force of the Treaty of Lisbon and the exercise of the EU’s new competence over the conclusion of treaties covering foreign direct investment, Europe marks its distances with the old approach of the member states and appears eager to set its own ‘model’. While broadly in harmony with the new generation of North American investment treaties, the nascent EU policy aims to improve international investment law in innovative ways, targeting both substantive and procedural protections, and leading to a yet newer generation of international investment treaties. The present article explores this new EU standard, which is set to change the face of international investment law as we know it.
Topic:
International Law, Treaties and Agreements, Foreign Direct Investment, and European Union
Political Geography:
Europe and European Union

144. How Should States Own? Heinisch v. Germany and the Emergence of Human Rights-Sensitive State Ownership Function

Author:
Mikko Rajavuori
Publication Date:
07-2015
Content Type:
Journal Article
Abstract:
State ownership is thriving. Emerging economies are extending their growing economic power outward through sovereign wealth funds. State-owned multinationals have become top sources of foreign direct investment. Bailouts have recreated powerful state ownership structures in regions where private ownership has traditionally prevailed. The state is back – in shareholder capacity. Approaching the rise of state ownership from a human rights perspective, this article submits that a new conceptualization of state ownership function is emerging. State ownership provides a strong link connecting corporate actions with the international human rights system. Yet the conventional methods used to integrate state ownership in human rights treaty bodies’ discretion seem unable to grasp the changing economic role of governments in the global economy. The article suggests that the notion of the ‘public shareholder’, introduced by the European Court of Human Rights in Heinisch v. Germany (2011), provides a useful lens for interrogating how states should govern the human rights performance of corporations through ownership. When exposed to the recent practice of a range of United Nations treaty bodies, internationalizing state ownership activity becomes framed in human rights terms. In this vision, the whole ownership function becomes a site for turning companies in the state’s portfolio into responsible corporate citizens who take the impact of human rights seriously. Specifically, treaty bodies should advise states to seek human rights governance through private mechanisms in the capacity of the shareholder. In the process, human rights’ checks and balances should constitute a counterweight for market-based initiatives that regulate state activity in the capacity of the shareholder.
Topic:
Human Rights, International Law, Treaties and Agreements, Foreign Direct Investment, Economies, and Courts
Political Geography:
Europe, Norway, and Germany

145. M. Sornarajah. Resistance and Change in the International Law on Foreign Investment

Author:
Harm Schepel
Publication Date:
10-2015
Content Type:
Journal Article
Abstract:
In 1994, Muthucumaraswamy Sornarajah published the first edition of his treatise, The International Law on Foreign Investment. There, he sought to demonstrate that investment law as a separate branch of international law was ‘in the process of development’ and could and should be isolated for separate study. Organizing his material from the disparate sources of domestic law, contract-based arbitration and public international law along the overarching tension between the interests of developing countries and those of traditionally capital-exporting states, his stated aim was to ‘help in the identification of the nature of the disputes’, which would lead, in turn, to the ‘formulation of acceptable solutions’. The treatise was a well-timed pioneering effort that rightfully earned the author a lasting reputation as one of the founding fathers and towering figures of the academic discipline. There seems to be no one better placed, then, to ask, 20 years on, what happened or, rather, what went wrong. Investment law has developed with breathtaking speed into a (very) separate branch of international law – yes – but almost entirely on the waves of treaty-based investor–state arbitration, which has all but eclipsed contractual and domestic processes, at least in terms of academic interest. And this system has, in the eyes of Sornarajah and many others, rather spectacularly failed to lead to ‘acceptable solutions’, especially for developing countries.
Topic:
International Law, Treaties and Agreements, Foreign Direct Investment, Neoliberalism, and Book Review
Political Geography:
Europe and United States of America

146. Economic Recovery in Somalia

Author:
Timothy Wilson
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Bildhaan: An International Journal of Somali Studies
Institution:
Macalester College
Abstract:
There were high hopes for a brighter future. After more than two decades of conflict, political uncertainty, multiple droughts and Soma- lia’s worst famine in sixty years, the landscape began to change. The Federal Government lost its transitional status and became officially of State, John Kerry. It appeared that the recovery was not just political. Economic for- tunes were improving as well. Trading activity began to increase again. Shops reopened, rising numbers of diaspora started return- ing and investment firms began opening in Mogadishu. The national post service resumed operations. The Central Bank Act was passed, which simultaneously gave the institution a stronger mandate as well 3 as preclude it from lending to the Government. A veritable construc- tion boom kicked off in Mogadishu, the city received its first ATM cash machine and in June 2015, an agreement between MasterCard and a Somali bank launched the first ever domestic issuance of debit cards. The Wall Street Journal wrote of ‘glimmers of hope’4 while Afri- can Development Bank wrote of a ‘turning point’ due to the ‘positive political and security developments as well as the commitment of the international community.’5 Emerging from the clamour of countless conferences, consultations, summits and high-level meetings, a belief was emerging that this time, something was different. This time, Soma- lia was recovering. Or was it? What turn did Somalia take? As the Federal Government approaches its fifth year, new developments have raised concern over the trajectory and pace of progress. The Prime Minister was dismissed by a no-confidence motion in December 2014. The new Prime Minister, Mr Omar Abdirashid Ali Sharmake, took three attempts to success- fully appoint a new cabinet endorsed by parliament. Concerns about corruption have threatened the steady flow of development finance. High profile attacks by Al Shabaab, both within Somalia and beyond, have raised questions about whether the organisation can be con- tained. Meanwhile, instability in Yemen has led to large numbers of refugees arriving into Somalia. It seems timely, therefore, to reassess the pace of progress and trajectory of recovery in Somalia. More than that, it is essential to examine whether economic recovery is occurring at the same pace and align- ment with political and social recovery. If this is not the case, as we will argue, peace-building gains may be temporary. The roots of conflict are grown in the fertile soil of economic desperation. The contribution of this article is to provide an overview of economic recovery in Somalia that is largely absent from the academic litera- ture. We collate and summarise the most recent quantitative statistics available and match these against qualitative information, including government reports and economic analysis. Our primary conclusion is a positive one; for the first time in more than two decades, Soma- lia’s economy is finally beginning to recover. Growth has returned. New market opportunities are being generated. The trade structure is diversifying and confidence is rising among investors, the diaspora and donors. To be clear, this trajectory is fragile. Political uncertainties and the looming arrival of oil exploration are threats that we discuss in this regard. Nonetheless, our primary thesis is that the five years since the establishment of the Federal Government has been, on balance, a positive period for economic reconstruction in Somalia. Our paper is structured as follows. We first make the case for the importance of economic development despite the massive social and political challenges that prevail in Somalia. We then outline the path- way to recovery that has been delineated by the Federal Government. We assess progress along this route and then identify some of the major threats to further progress.
Topic:
Economics, International Trade and Finance, Foreign Direct Investment, and Recovery
Political Geography:
Africa and Somalia

147. Identifying Foreign Suppliers in U.S. Import Data

Author:
Fariha Kamal and Ryan Monarch
Publication Date:
08-2015
Content Type:
Commentary and Analysis
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Relationships between firms and their foreign suppliers are the foundation of international trade, but data limitations and reliability concerns make studying such relationships challenging. We evaluate and enhance supplier information in U.S. import data and present new facts about importer-exporter relationships. Count of foreign exporters from U.S. import data tends to exceed those from source country data, especially from China. The pattern of U.S. imports from origin countries changes substantially by tracing trade back to the supplier's location instead. Related-party relationships trade more, while larger countries have more relationships.
Topic:
International Cooperation, Foreign Direct Investment, Business, Trade, Data, and Imports
Political Geography:
North America and United States of America

148. Foreign investments in Uganda's oil sector: linkages and issues for the local economy

Author:
Anne Mette Kjær
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The Ugandan economy resembles many other economies in sub-Saharan Africa in that it has a large subsistence sector, relies on a few primary commodities for export and depends on aid to finance its public services. Oil and minerals have so far not been important to the economy. However, this might change as an estimated 3.5 billion barrel oil reservoir has been discovered in Uganda's Western and Northwestern Albertine Graben. Minerals have also been found and are being sold off as concessions. If oil revenues start to be mobilized as currently planned (2016-17), significant changes in not only government finance but also in the governments' relationships with donors and in state–society relations are likely to occur. The consequences for local communities and the environment are also likely to be significant.
Topic:
Development, Economics, Oil, Natural Resources, Foreign Aid, Fragile/Failed State, and Foreign Direct Investment
Political Geography:
Uganda and Africa

149. From enclave to linkage economies? A review of the literature on linkages between extractive multinational corporations and local industry in Africa

Author:
Michael W. Hansen
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
If African developing countries are to benefit fully from the current boom in foreign direct investment (FDI) in extractives (i.e. mining and oil/gas), it is essential that the foreign investors foster linkages to the local economy. Traditionally, extractive FDI in Africa has been seen as the enclave economy par excellence, moving in with fully integrated value chains, extracting resources and exporting them as commodities having virtually no linkages to the local economy. However, new opportunities for promoting linkages are offered by changing business strategies of local African enterprises as well as foreign multinational corporations (MNCs). MNCs in extractives are increasingly seeking local linkages as part of their efficiency, risk, and asset-seeking strategies, and linkage programmes are becoming integral elements in many MNCs' corporate social responsibility (CSR) activities. At the same time, local African enterprises are eager to, and increasingly capable of, linking up to the foreign investors in order to expand their activities and acquire technology, skills and market access. The changing strategies of MNCs and the improving capabilities of African enterprises offer new opportunities for governments and donors to mobilize extractive FDI for development goals. This paper seeks to take stock of what we know about the state of and driving forces of linkage formation in South Sahel Africa extractives based on a review of the extant literature. The paper argues that while MNCs and local enterprises by themselves will indeed produce linkages, the scope, depth and development impacts of linkages eventually depend on government intervention. Resource-rich African countries' governments are aware of this and linkage promotion is increasingly becoming a key element in their industrialization strategies. A main point of the paper is that the choice between different linkage policies and approaches should be informed by a firm understanding of the workings of the private sector as well as the political and institutional capacity of host governments to adopt and implement linkage policies and approaches.
Topic:
Development, Economics, Markets, Foreign Aid, and Foreign Direct Investment
Political Geography:
Africa

150. The Development of Natural Resource Linkages in Mozambique: The Ruling Elite Capture of New Economic Opportunities

Author:
Lars Buur
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This paper explores linkage creation in Mozambique related to mega-projects in natural resource extraction and development from a political economy perspective. It explores through a focus on linkage development related to extractive industries in Mozambique the 'best practice' attempts between commodity producers and local content providers. The paper argues that a relatively elaborate state organizational and institutional setup based on policies, strategies and units with funding tools has emerged over time in order to begin to reap the benefits of large-scale investments in the extractive sectors. However, despite the formal acknowledgement, very little has been achieved with regard to forward and backward linkages, state institutions are often despite the official government rhetoric of importance simply bypassed not only by foreign investors, but also by the political leadership.
Topic:
Development, Economics, International Trade and Finance, Political Economy, Natural Resources, and Foreign Direct Investment
Political Geography:
Africa