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Begin New Search Topic Foreign Direct Investment Publication Year within 10 Years

1. Exporting out of China or out of Africa? Automation versus Relocation in the Global Clothing Industry

Author:
Tilman Altenburg, Xiao Chen, Wilfried Lütkenhorst, Cornelia Staritz, and Lindsay Whitfield
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The Discussion Paper examines the opportunities that the rising industrial wages in China will bring for Africa. China has been the industrial workbench of the global economy for decades. However, its competitive advantages are waning, particularly for labour-intensive assembly activities in the clothing, shoe, electronics and toy industries. The Chinese government estimates that up to 81 million low-cost industrial jobs are at risk of relocation to other countries - unless China can keep the companies in the country through automation. Against this background, three complementary studies were carried out. The first examines where the automation technology for clothing and footwear production stands today; the second, how clothing companies in China deal with the cost pressure: to what extent they automate, relocate within China or abroad and how great is the interest in Africa as a production location. The third part is devoted to Africa’s competitiveness in clothing assemly, with empirical findings from Ethiopia and Madagascar. The Discussion Paper shows that the manufacture of clothing can already be robotized today, but that for sewing, robotization will probably remain more expensive than manual labor in the next 15-20 years. China’s companies are investing heavily in the automation of all other production processes and at the same time shifting production to neighbouring Asian countries. In Africa, only Ethiopia is currently competitive in the manufacture of clothing, and here too there are significant institutional difficulties in absorbing large amounts of direct investment.
Topic:
Industrial Policy, Labor Issues, Foreign Direct Investment, Exports, and Automation
Political Geography:
Africa, Europe, Germany, Ethiopia, and Madagascar

2. New Productivity Drivers: Revisiting the Role of Digital Capital, FDI and Integration at Aggregate and Sectoral Levels

Author:
Amat Adarov and Robert Stehrer
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The paper studies the drivers of productivity at country and sectoral levels over the period 2000-2017 with the focus on the impact of capital accumulation and structure. The analysis confirms an especially important role of ICT and intangible digital capital for productivity growth, particularly in the manufacturing sectors. While backward global value chain participation and EU integration are also found to be instrumental for accelerating productivity growth, the impact of inward foreign direct investment is not robustly detected when the data is purged from the effects of special purpose entities and outlier countries.
Topic:
Economics, Foreign Direct Investment, European Union, Digital Economy, Capital Flows, and Trade
Political Geography:
Europe and Global Focus

3. Political Instability, FDI and Economic Growth in Sub-Saharan African Countries: Evidence from Modelling Dynamic Simultaneous Equations

Author:
Lewis Landry Gakpa
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
The aim of this study is to examine the consequences of interaction between political instability and foreign direct investment (FDI) on economic growth of 31 countries in Sub-Saharan Africa in order to analyse one of the channels through which political instability affects economic growth. To achieve this objective, the study relies on a dynamic panel procedure and the Three Stage Least Squares Method to estimate a model of simultaneous equations over the period 1984-2015. The empirical results indicate that political instability affects economic growth directly and indirectly through its impact on foreign direct investment. We also highlight the simultaneous character of the relationship between political instability and the level of economic development in Sub-Saharan African countries. The results of the study then corroborate the idea that political instability hinders growth and thus calls for measures to improve the quality of political climate, which is one of the conditions necessary for a country’s economy to benefit from foreign direct investment.
Topic:
Economics, Foreign Direct Investment, Political stability, Economic Policy, and Macroeconomics
Political Geography:
Africa, South Africa, Angola, Namibia, and Botswana

4. FDI another day: Russian reliance on European investment

Author:
Marta Dominguez-Jimenez and Niclas Poitiers
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Most foreign direct investment into Russia originates in the European Union: European investors own between 55 percent and 75 percent of Russian FDI stock. This points to a Russian dependence on European investment, making the EU paramount for Russian medium-term growth. Even if we consider ‘phantom’ FDI that transits through Europe, the EU remains the primary investor in Russia. Most phantom FDI into Russia is believed to originate from Russia itself and thus is by construction not foreign.
Topic:
Economics, Energy Policy, Foreign Direct Investment, Governance, Sanctions, European Union, and Global Political Economy
Political Geography:
Russia and Europe

5. ECONOMIC REBALANCING AND GEOECONOMIC CHALLENGES FOR CHINA: THE CASE OF INTRA-BRICS TRADE AND FOREIGN DIRECT INVESTMENTS

Author:
Marcelo Milan and Leandro Teixeira Santos
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
This article examines the geoeconomic challenges brought to China by the effects of trade and foreign direct investment (FDI) flows, and consequently by the nature and composition of international economic alliances, mainlycooperation among underdeveloped nations(Glosny, 2010), of rebalancing3of its drivers of growth4. It evaluates likely impacts on other BRICS countries, given the economic linkages developed during the past couple of decades, as an example of what may happen to broader geoeconomic arrangements as the process of rebalancing deepens
Topic:
International Political Economy, Foreign Direct Investment, Geopolitics, and Economic Cooperation
Political Geography:
Russia, China, India, South Africa, and Brazil

6. Quarterly Review of the Georgian Economy (III Quarter, 2019)

Author:
Merab Kakulia, Nodar Kapanadze, and Lela Bakhtadze
Publication Date:
01-2020
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, Economy, Economic growth, Banks, and Inflation
Political Geography:
Eurasia, Caucasus, and Georgia

7. Gulf financial aid and direct investment: Tracking the implications of state capitalism, aid, and investment flows

Author:
Karen E. Young
Publication Date:
08-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Much energy has focused on China’s Belt and Road Initiative and the debt-trap diplomacy it represents. But there is another set of players on the scene whose growth and influence in this sphere have been largely ignored. Gulf Arab states, particularly Saudi Arabia and the United Arab Emirates, have increasingly embraced an aggressive growth, investment, and development model for the broader Middle East. This report and the accompanying Gulf Financial Aid and Direct Investment Tracker are an effort to understand the breadth and scope of Gulf aid and financial intervention into a representative set of cases in the Middle East, the Horn of Africa, and West Asia. The objective is to demonstrate the competitive landscape for foreign investment in the receiving case countries and indicate the growing strength of Gulf capital investment, as it measures against a perception of Chinese capacity in the wider Middle East and emerging markets broadly. Most important, the comparative data here also demonstrate how private capital flows from the United States, United Kingdom, and European Union compete against flows of capital from state capitalism sources such as China and the Gulf.
Topic:
Foreign Direct Investment, Belt and Road Initiative (BRI), Investment, Strategic Competition, and State Capitalism
Political Geography:
China, Middle East, and Gulf Nations

8. China and the EU in the Western Balkans: A zero-sum game?

Author:
Wouter Zweers, Vladimir Shopov, Frans-Paul van der Putten, Mirela Petkova, and Maarten Lemstra
Publication Date:
08-2020
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
This Clingendael Report explores whether and how China’s approach to the six non-European Union (EU) countries of the Western Balkans (the WB6) relates to EU interests. It focuses in particular on the question of whether China’s influence affects the behaviour of the WB6 governments in ways that run counter to the EU’s objectives in the region. China engages with the Western Balkans primarily as a financier of infrastructure and a source of direct investment. This is in line with China’s main strategic objective for the Western Balkans – that is, to develop the Land–Sea Express Corridor, a component of its Belt and Road Initiative, aimed at improving China–EU connectivity. This report proposes a number of actions based on recognising the developmental needs of countries in the Western Balkans, and accepting that China’s economic involvement is inevitable and potentially beneficial for such developmental needs. In particular, the EU should maximise accession conditionality as a tool to influence the conditions under which China is involved in the region.
Topic:
International Relations, Foreign Direct Investment, and European Union
Political Geography:
China, Europe, Eastern Europe, and Balkans

9. Cooperation Between the United States and Pakistan: What is the Future?

Author:
Riaz A. Khokhar
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
Within the Indo-Pacific region, the United States and Pakistan have sharply divergent strategic objectives. While American objectives have changed over time, focusing in recent years on rivalry with China, Pakistan’s strategic objective has remained constant—to maintain a balance of power with India. Yet Pakistan retains close strategic and economic ties with China, and the United States considers India an important strategic partner. Nevertheless, the two countries have worked together for nearly two decades toward two tactical goals—achieving a political settlement in Afghanistan and eliminating terrorism in South Asia. There is potential for them to cooperate more broadly, for example, increasing direct foreign investment to Pakistan and helping Islamabad balance its relations with the United States and China. Washington’s willingness to expand such cooperation will depend on Pakistan’s cooperation in fighting terrorism in the region.
Topic:
International Cooperation, Terrorism, Power Politics, Foreign Direct Investment, and Geopolitics
Political Geography:
Pakistan, Afghanistan, China, South Asia, India, North America, United States of America, and Indo-Pacific

10. A return to Africa: Why North African states are looking south

Author:
Anthony Dworkin
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
European Council On Foreign Relations
Abstract:
North African countries, each for their own reasons, are increasingly turning their attention towards sub-Saharan Africa. Morocco is pursuing a comprehensive campaign to increase its influence and win support with regard to Western Sahara. Algeria may be showing new flexibility in its response to security threats to its south. Tunisia is beginning to look for new economic opportunities in Africa. Egypt is responding to a series of strategic concerns, particularly over the waters of the Nile. Morocco, Algeria, and Tunisia are also all dealing with increased migration flows, with migrants seeking to work on their territories or pass through it to reach Europe. This North African turn to sub-Saharan Africa offers opportunities for European cooperation. But the EU should be aware of the distinctive agendas of North African countries and the reservations that their initiatives engender in some countries.
Topic:
International Relations, Migration, Regional Cooperation, and Foreign Direct Investment
Political Geography:
Africa, Algeria, North Africa, Egypt, Morocco, and Tunisia