Pub Date : 2021-08-31DOI: 10.18356/2076099x-28-2-3
S. Elia, L. Fratocchi, P. Barbieri, Albachiara Boffellid, M. Kalchschmidt
The COVID-19 pandemic is expected to trigger a reconfiguration of global value chains according to four alternative trajectories: reshoring, regionalization, replication and diversification. This paper focuses on the first two scenarios. On the basis of a review of the extant reshoring literature and policies implemented in several major developed and emerging economies, we present a comprehensive framework to classify and analyse the evolution of such policies before and after the pandemic. The paper develops some policy recommendations suggesting that reshoring policies need to be supported by and combined with industrial policies enforcing the competitiveness and sustainability of production systems.
{"title":"Post-pandemic Reconfiguration from Global to Domestic and Regional Value Chains: The Role of Industrial Policies","authors":"S. Elia, L. Fratocchi, P. Barbieri, Albachiara Boffellid, M. Kalchschmidt","doi":"10.18356/2076099x-28-2-3","DOIUrl":"https://doi.org/10.18356/2076099x-28-2-3","url":null,"abstract":"The COVID-19 pandemic is expected to trigger a reconfiguration of global value chains according to four alternative trajectories: reshoring, regionalization, replication and diversification. This paper focuses on the first two scenarios. On the basis of a review of the extant reshoring literature and policies implemented in several major developed and emerging economies, we present a comprehensive framework to classify and analyse the evolution of such policies before and after the pandemic. The paper develops some policy recommendations suggesting that reshoring policies need to be supported by and combined with industrial policies enforcing the competitiveness and sustainability of production systems.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45602867","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-31DOI: 10.18356/2076099x-28-2-5
Stephen R. Buzdugan
This article seeks to explain recent decisions by countries to terminate their existing bilateral investment treaties (BITs) and revisit their commitment to future international investment agreements (IIAs). It argues that BITs, transnational corporations (TNCs), host States and international arbitration institutions form a decentralized system of global governance of foreign direct investment (FDI), based on insights from the fields of international political economy and international law, and that the nonmarket strategies of these TNCs have not only shaped the contours of this system but have also prompted host States to reform this system, from the perspective of a “political bargaining model”. The article illustrates this argument through the case of South Africa, which terminated its BITs with several European countries as a response to cases of investor–State dispute settlement (ISDS) and has sought to redefine its engagement with this system of global governance as a result.
{"title":"The Global Governance of FDI and the Non-market Strategies of TNCs: Explaining the “Backlash” Against Bilateral Investment Treaties","authors":"Stephen R. Buzdugan","doi":"10.18356/2076099x-28-2-5","DOIUrl":"https://doi.org/10.18356/2076099x-28-2-5","url":null,"abstract":"This article seeks to explain recent decisions by countries to terminate their existing bilateral investment treaties (BITs) and revisit their commitment to future international investment agreements (IIAs). It argues that BITs, transnational corporations (TNCs), host States and international arbitration institutions form a decentralized system of global governance of foreign direct investment (FDI), based on insights from the fields of international political economy and international law, and that the nonmarket strategies of these TNCs have not only shaped the contours of this system but have also prompted host States to reform this system, from the perspective of a “political bargaining model”. The article illustrates this argument through the case of South Africa, which terminated its BITs with several European countries as a response to cases of investor–State dispute settlement (ISDS) and has sought to redefine its engagement with this system of global governance as a result.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43249312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-31DOI: 10.18356/2076099x-28-2-1
Eliane Choquette, S. Haakonsson, Peter D. Ørberg Jensen, Søren Feodor Nielsen
The current stage of globalization involves geographically dispersed research and development (R&D) investments that are not confined to advanced economies. These cross-border R&D investments are driven by multinational enterprises’ (MNEs’) strategies for exploring and/or exploiting foreign locations. In this paper, we analyse location choice and the moderating effect of project-level investment strategy (i.e. exploration or exploitation) and type of host economy (i.e. advanced or emerging) on the importance of the innovation framework and local innovation capabilities. Our analysis of 588 R&D-related foreign direct investment (FDI) projects in the pharmaceutical and biotech industries during the 2006–2016 period reveals that whereas a host country’s innovation framework and capability overall do affect the location decision, their ultimate effects are conditional on the combination of project-level investment strategy and type of economy. Our findings have policy implications for FDI policies aiming at enhancing linkages between MNEs and local actors and national science, technology, innovation and educational policies and programmes.
{"title":"Globalization of Innovation: The Moderating Role of Project-level Investment Strategy and Country Type in Location Choicee for R&D-related FDI","authors":"Eliane Choquette, S. Haakonsson, Peter D. Ørberg Jensen, Søren Feodor Nielsen","doi":"10.18356/2076099x-28-2-1","DOIUrl":"https://doi.org/10.18356/2076099x-28-2-1","url":null,"abstract":"The current stage of globalization involves geographically dispersed research and development (R&D) investments that are not confined to advanced economies. These cross-border R&D investments are driven by multinational enterprises’ (MNEs’) strategies for exploring and/or exploiting foreign locations. In this paper, we analyse location choice and the moderating effect of project-level investment strategy (i.e. exploration or exploitation) and type of host economy (i.e. advanced or emerging) on the importance of the innovation framework and local innovation capabilities. Our analysis of 588 R&D-related foreign direct investment (FDI) projects in the pharmaceutical and biotech industries during the 2006–2016 period reveals that whereas a host country’s innovation framework and capability overall do affect the location decision, their ultimate effects are conditional on the combination of project-level investment strategy and type of economy. Our findings have policy implications for FDI policies aiming at enhancing linkages between MNEs and local actors and national science, technology, innovation and educational policies and programmes.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44486609","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-31DOI: 10.18356/2076099x-28-2-2
D. Audretsch, M. Belitski, Farzana Chowdhury, Sameeksha Desaia
Direct exporting activities and outward foreign direct investment (OFDI) are two types of internationalization that differ in firms’ opportunities, resources and risks. We study home-country institutional factors for internationalization and empirically investigate the direct and joint effects of export regulations, credit markets and corruption in explaining exporting and OFDI from a country. Using country-level data from 96 developed and developing countries between 2000 and 2018, we test a series of hypotheses and examine nonlinearity in the relationships. The results of the study suggest that export regulations partially affect exporting but do not affect OFDI. Access to financial resources can be critical in parts for both exports and OFDI. The findings also show that corruption can have different implications for exports and OFDI. The interactions of corruption with export regulations and credit markets reveal some unexpected and counter-intuitive results, highlighting the importance of distinguishing between the direct and indirect (joint) effects of business environment factors and corruption on exports and OFDI. The results of the study contain important information for policymakers.
{"title":"Home-country Export Regulations, Credit Markets, and Corruption: Implications for Different Types of Internationalization","authors":"D. Audretsch, M. Belitski, Farzana Chowdhury, Sameeksha Desaia","doi":"10.18356/2076099x-28-2-2","DOIUrl":"https://doi.org/10.18356/2076099x-28-2-2","url":null,"abstract":"Direct exporting activities and outward foreign direct investment (OFDI) are two types of internationalization that differ in firms’ opportunities, resources and risks. We study home-country institutional factors for internationalization and empirically investigate the direct and joint effects of export regulations, credit markets and corruption in explaining exporting and OFDI from a country. Using country-level data from 96 developed and developing countries between 2000 and 2018, we test a series of hypotheses and examine nonlinearity in the relationships. The results of the study suggest that export regulations partially affect exporting but do not affect OFDI. Access to financial resources can be critical in parts for both exports and OFDI. The findings also show that corruption can have different implications for exports and OFDI. The interactions of corruption with export regulations and credit markets reveal some unexpected and counter-intuitive results, highlighting the importance of distinguishing between the direct and indirect (joint) effects of business environment factors and corruption on exports and OFDI. The results of the study contain important information for policymakers.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41653059","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-31DOI: 10.18356/2076099x-28-2-6
Emily Blanchard, Amelia U. Santos‐Paulino, C. Trentini, Emanuel Milet
This paper offers preliminary evidence of the extent to which global FDI patterns have responded to the sharp increase in trade barriers since 2018, focusing in particular on the impact of new United States tariffs imposed on imports from China. Using detailed project-level data on new greenfield FDI as well as complementary research, this paper tracks the differential changes in FDI across countries and industries most affected by the trade tensions. There is some evidence of diversion to South-East Asia in specific industries, confirming findings of other research, but the aggregate effect on investment in China is limited and the overall effect on investment in South-East Asia is actually negative. A possible explanation lies in the importance of global value chain linkages as key determinants of firms’ investment decisions.
{"title":"Implications of Rising Trade Tensions for FDI Projects","authors":"Emily Blanchard, Amelia U. Santos‐Paulino, C. Trentini, Emanuel Milet","doi":"10.18356/2076099x-28-2-6","DOIUrl":"https://doi.org/10.18356/2076099x-28-2-6","url":null,"abstract":"This paper offers preliminary evidence of the extent to which global FDI patterns have responded to the sharp increase in trade barriers since 2018, focusing in particular on the impact of new United States tariffs imposed on imports from China. Using detailed project-level data on new greenfield FDI as well as complementary research, this paper tracks the differential changes in FDI across countries and industries most affected by the trade tensions. There is some evidence of diversion to South-East Asia in specific industries, confirming findings of other research, but the aggregate effect on investment in China is limited and the overall effect on investment in South-East Asia is actually negative. A possible explanation lies in the importance of global value chain linkages as key determinants of firms’ investment decisions.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48457096","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-30DOI: 10.18356/2076099x-28-1-4
Ricardo Monge-González, L. Rivera, N. Mulder
We study cultural spillovers from multinational corporations (MNCs) to domestic companies in the information technology (IT) sector of Costa Rica. Using firm-level panel data for 2001–2011, we explore to what extent domestic firms’ female labour share increases as a result of business operations of MNCs. We find evidence of two channels for cultural spillovers from foreign direct investment (FDI) to domestic IT firms influencing higher shares of female employment: learning (imitation) effects through labour mobility, which allows former MNC employees working in domestic firms to apply skills and gender practices from their previous work experience, and demonstration effects with the presence of MNCs (through competition in the labour market), which include imitation of social norms and values of MNCs by local firms. No evidence was found for a relationship between backward linkages (purchases) of MNCs from domestic suppliers and female labour share. To promote greater participation by women in labour markets through FDI attraction, strengthening cultural spillovers would require implementing FDI promotion policies to (i) enhance the absorptive capacity of domestic IT firms, (ii) attract IT MNCs with greater potential to generate spillovers, and (iii) foster a favourable national investment climate for enhancing business interactions between IT MNCs and domestic IT firms.
{"title":"Cultural Spillovers from Multinational to Domestic Firms: Evidence on Female Employment in Costa Rica","authors":"Ricardo Monge-González, L. Rivera, N. Mulder","doi":"10.18356/2076099x-28-1-4","DOIUrl":"https://doi.org/10.18356/2076099x-28-1-4","url":null,"abstract":"We study cultural spillovers from multinational corporations (MNCs) to domestic companies in the information technology (IT) sector of Costa Rica. Using firm-level panel data for 2001–2011, we explore to what extent domestic firms’ female labour share increases as a result of business operations of MNCs. We find evidence of two channels for cultural spillovers from foreign direct investment (FDI) to domestic IT firms influencing higher shares of female employment: learning (imitation) effects through labour mobility, which allows former MNC employees working in domestic firms to apply skills and gender practices from their previous work experience, and demonstration effects with the presence of MNCs (through competition in the labour market), which include imitation of social norms and values of MNCs by local firms. No evidence was found for a relationship between backward linkages (purchases) of MNCs from domestic suppliers and female labour share. To promote greater participation by women in labour markets through FDI attraction, strengthening cultural spillovers would require implementing FDI promotion policies to (i) enhance the absorptive capacity of domestic IT firms, (ii) attract IT MNCs with greater potential to generate spillovers, and (iii) foster a favourable national investment climate for enhancing business interactions between IT MNCs and domestic IT firms.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42416645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-30DOI: 10.18356/2076099x-28-1-3
Yuanyuan Li, J. Cantwell
This research explores the enablers of emerging-market firms (EMFs) leapfrogging in the internationalization process. Although many studies on rapid internationalization focus on exporting activities, we expand the concept to a higher-commitment entry mode: foreign direct investment (FDI). In addition, we investigate the role of an understudied force, foreign multinational enterprises (MNEs) in emerging markets, in enabling rapid internationalization of EMFs. Our hypotheses are tested using 1,612 first-time outward FDI projects from China between 2000 and 2014. The largely supported results suggest that minority foreign ownership and co-location with foreign MNEs allow EMFs to leapfrog certain stages in the establishment chain. Our findings offer alternative explanations, besides the government steward logic, to EMFs’ international expansion and contribute to the understanding, from a policy standpoint, that encouraging foreign-local partnerships is conducive to host-country industrial upgrading.
{"title":"Rapid FDI of Emerging-market Firms: Foreign Participation and Leapfrogging in the Establishment Chain","authors":"Yuanyuan Li, J. Cantwell","doi":"10.18356/2076099x-28-1-3","DOIUrl":"https://doi.org/10.18356/2076099x-28-1-3","url":null,"abstract":"This research explores the enablers of emerging-market firms (EMFs) leapfrogging in the internationalization process. Although many studies on rapid internationalization focus on exporting activities, we expand the concept to a higher-commitment entry mode: foreign direct investment (FDI). In addition, we investigate the role of an understudied force, foreign multinational enterprises (MNEs) in emerging markets, in enabling rapid internationalization of EMFs. Our hypotheses are tested using 1,612 first-time outward FDI projects from China between 2000 and 2014. The largely supported results suggest that minority foreign ownership and co-location with foreign MNEs allow EMFs to leapfrog certain stages in the establishment chain. Our findings offer alternative explanations, besides the government steward logic, to EMFs’ international expansion and contribute to the understanding, from a policy standpoint, that encouraging foreign-local partnerships is conducive to host-country industrial upgrading.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45612026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-05DOI: 10.18356/2076099x-27-3-3
J. Poole, Amelia U. Santos‐Paulino, J. Zhan
Foreign direct investment (FDI) and multinational enterprises (MNEs) are important sources of financing for developing countries. In this context, the United Nations Conference on Trade and Development (UNCTAD) has a long track-record of looking at both spillovers from FDI and gender equality. The policy study on investment by transnational corporations and gender provided a preliminary review of the academic literature on the impact of foreign investment on gender policy and practice, focusing on the wage and employment effects, and the related potential for women’s empowerment (UNCTAD, 2014). In addition, the 2020 World Investment Report (UNCTAD, 2020a) describes that the world’s leading multinational enterprises are increasing their gender equality reporting and policies, contributing to broader female representation and positive development impacts. Finally, several of the papers in this special issue served as background research for the UNCTAD (forthcoming) policy report on The International Transmission of Gender Policies and Practices: The Role of Multinational Enterprises. This original academic research was presented at an expert group meeting in May 2020, which brought together researchers, practitioners, and policymakers to discuss tangible policy recommendations and development impacts, while formally validating the quality of the research as part of the review process.
{"title":"Articles: Introduction to the Transnational Corporations special issue on multinational enterprises and gender equality","authors":"J. Poole, Amelia U. Santos‐Paulino, J. Zhan","doi":"10.18356/2076099x-27-3-3","DOIUrl":"https://doi.org/10.18356/2076099x-27-3-3","url":null,"abstract":"Foreign direct investment (FDI) and multinational enterprises (MNEs) are important sources of financing for developing countries. In this context, the United Nations Conference on Trade and Development (UNCTAD) has a long track-record of looking at both spillovers from FDI and gender equality. The policy study on investment by transnational corporations and gender provided a preliminary review of the academic literature on the impact of foreign investment on gender policy and practice, focusing on the wage and employment effects, and the related potential for women’s empowerment (UNCTAD, 2014). In addition, the 2020 World Investment Report (UNCTAD, 2020a) describes that the world’s leading multinational enterprises are increasing their gender equality reporting and policies, contributing to broader female representation and positive development impacts. Finally, several of the papers in this special issue served as background research for the UNCTAD (forthcoming) policy report on The International Transmission of Gender Policies and Practices: The Role of Multinational Enterprises. This original academic research was presented at an expert group meeting in May 2020, which brought together researchers, practitioners, and policymakers to discuss tangible policy recommendations and development impacts, while formally validating the quality of the research as part of the review process.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90606361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-05DOI: 10.18356/2076099x-27-3-11
Renata Vargas Amaral, Lillyana Sophia Daza Jaller
Government policy and private sector practice have the ability to spread gender equality, which can have an impact on growth and development. Over the past years, an upsurge has been observed in trade agreements that carve out space for gender issues in their agendas. The same is not true for international investment treaties. Foreign direct investment inflows can lead to more opportunities for women in the job market but may also exacerbate disparities. This paper aims to address and compare the role and effect of gender provisions in trade and investment agreements, and to shed light on additional policies that may be needed to ensure that governments and multinational enterprises address gender constraints.
{"title":"The role of regulation and MNEs in ensuring equal opportunities for women","authors":"Renata Vargas Amaral, Lillyana Sophia Daza Jaller","doi":"10.18356/2076099x-27-3-11","DOIUrl":"https://doi.org/10.18356/2076099x-27-3-11","url":null,"abstract":"Government policy and private sector practice have the ability to spread gender equality, which can have an impact on growth and development. Over the past years, an upsurge has been observed in trade agreements that carve out space for gender issues in their agendas. The same is not true for international investment treaties. Foreign direct investment inflows can lead to more opportunities for women in the job market but may also exacerbate disparities. This paper aims to address and compare the role and effect of gender provisions in trade and investment agreements, and to shed light on additional policies that may be needed to ensure that governments and multinational enterprises address gender constraints.","PeriodicalId":40060,"journal":{"name":"Transnational Corporations","volume":"111 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77861135","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：