Foreign Direct Investments and Economic Development

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: 8 August 2024 | Viewed by 5230

Special Issue Editor


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Guest Editor
Department of Business and Law, University of Milano-Bicocca, Milan, Italy
Interests: international economics; foreign direct investments; spillovers; global production networks; multinational enterprises (MNEs)

Special Issue Information

Dear Colleagues,

FDIs are a significant catalyst for development and growth. However, their benefits do not accrue automatically and evenly across sectors and over space because of the role of national and international policy instruments in enhancing FDI flows and ensuring the reaping of the full benefits of FDI for development. The challenges impact both the host countries, which need to establish a transparent and effective economic and institutional environment for FDI, and the home countries, which can facilitate emerging and less developed countries’ and regions’ access to international markets and technology through the participation in global value chains.

This Special Issue aims to provide an overview of the current knowledge about the FDI and development nexus from different perspectives. Some of the topics that this Special Issue might address include, but are not limited to, the contribution of FDI to economic growth and development; FDI and the SDGs; FDI and technology and knowledge diffusion; spillovers; FDI promotion policies; investment liberation policies; and GVCs and development.

Dr. Laura Resmini
Guest Editor

Manuscript Submission Information

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Keywords

  • foreign direct investment and sustainable development
  • FDI and growth nexus
  • spillovers effects
  • MNEs and global value chains
  • MNEs and the ESGs
  • MNEs and SDGs
  • MNEs and CSR
  • MNEs and human rights
  • FDI promotion policies
  • international agreements and FDI
  • MNEs from emerging countries

Published Papers (2 papers)

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Research

16 pages, 278 KiB  
Article
Does Chinese Investment into Europe Facilitate Strategic Asset Growth in the Chinese Parent Company? The Role of Entry Mode
by John Anderson, Dylan Sutherland and Sean Severe
Economies 2024, 12(3), 56; https://doi.org/10.3390/economies12030056 - 25 Feb 2024
Viewed by 1097
Abstract
Strategic asset seeking foreign direct investment has undergone tremendous growth over the past decade. This paper first attempts to evaluate the location choice of such investments in Europe. We find that Chinese companies target strategic assets in Europe. The paper then moves to [...] Read more.
Strategic asset seeking foreign direct investment has undergone tremendous growth over the past decade. This paper first attempts to evaluate the location choice of such investments in Europe. We find that Chinese companies target strategic assets in Europe. The paper then moves to understand the efficacy of these investments in terms of the creation of strategic assets in the Chinese parent company. Our results show the intangible assets of Chinese domestic parent firms significantly increase in the wake of their investments. For greenfield investments, there is a longer time-lag in creation of intangible strategic assets than for acquisitions. However, greenfield investments result in a larger increase in intangible asset creation than acquisition investments. Full article
(This article belongs to the Special Issue Foreign Direct Investments and Economic Development)
15 pages, 588 KiB  
Article
How Does Foreign Direct Investment Drive Employment Growth in Vietnam’s Formal Economy?
by Thi Bich Thuy Dao, Van Quy Khuc, Manh Cuong Dong and Thuy Linh Cao
Economies 2023, 11(11), 266; https://doi.org/10.3390/economies11110266 - 26 Oct 2023
Cited by 1 | Viewed by 3774
Abstract
Over the last three decades, Vietnam has undergone economic reforms and achieved rapid economic growth. However, the country is still facing numerous challenges linked to a relatively high share of employment in an informal economic sector, which could prevent Vietnam from escaping from [...] Read more.
Over the last three decades, Vietnam has undergone economic reforms and achieved rapid economic growth. However, the country is still facing numerous challenges linked to a relatively high share of employment in an informal economic sector, which could prevent Vietnam from escaping from the middle-income trap and becoming a high-income country. This research explores the effect of foreign direct investment (FDI) on job creation in the formal economic sector of Vietnam. A subnational dataset of 63 cities/provinces from 2006 to 2020 was analyzed using an instrumental variable two-stage least-squares fixed-effect model. The results show that FDI is an employment growth-enhancing factor in the formal economic sector. Specifically, FDI enterprises are found to be more capable than domestic enterprises in creating employment, and there is a positive employment spillover from the foreign to the domestic sector, although the magnitude of the effect remains small. Apart from FDI, firm agglomeration, capital resource productivity, and government support for sector development spur employment growth. Labor quality, profitability and foreign industrial agglomeration are identified to be determinants of FDI. Furthermore, the impact mechanism of FDI on the formal sector’s employment is further discussed using mindspongeconomics, the SM3D knowledge management system, and the culture tower. Full article
(This article belongs to the Special Issue Foreign Direct Investments and Economic Development)
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