Changing Policy Regimes in Outward Foreign Direct Investment: From Control to Promotion

Beule, Filip De; Bulcke, Daniel Van Den

doi:10.1057/9780230112025_14

Cited by 16 publications

(7 citation statements)

References 32 publications

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“…Some governments of developed country (e.g., Japan, Germany, and the United States) have been vigorous in promoting their home country firms' overseas FDI, especially in the 1980s and 1990s (Buckley et al, 2010;Ramamurti, 2001). Governments in newly industrialized economies such as Singapore, South Korea, and Taiwan have also been active in assisting their home country MNEs to invest overseas (De Beule and Van Den Bulcke, 2010). These studies suggest that home country governments can affect firms' OFDI at the macro level by removing entry barriers in host countries and creating favorable economic environments (via, for example, international investment agreements and official development assistance) for MNEs to conduct business in host countries (Buckley et al, 2010;Ramamurti, 2001) and at the micro level by providing direct informational, technical, and financial support for firms (Buckley et al, 2010;De Beule and Van Den Bulcke, 2010).…”

Section: Resultsmentioning

confidence: 99%

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

Newenham‐Kahindi

Shapiro

et al. 2013

Global Strategy Journal

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In recent years, foreign direct investment (FDI) in natural resource industries by Chinese firms in Africa has increased rapidly. The strategic importance of the natural resource sector to host country governments produces considerable bargaining over entry and operating terms, with attendant political risks. Using case studies in Tanzania, we find that the Chinese government and firms engage in a bargaining model different from traditional models. Specifically, they engage in a modified one‐tier bargaining model in which the Chinese government represents the collective interests of Chinese natural resource firms to negotiate with the host country government. In exchange for investment deals in the natural resource sector, the Chinese government offers a package with loans that support multiple‐purpose development projects in various sectors, with a focus on infrastructure. Chinese firms act as a group to fulfill the Chinese government's commitments to the host country government. We discuss the boundary conditions for this Chinese‐style bargaining model and its relationship to political risk. We conclude that the Chinese model has unique elements, although they are likely limited to resource investments in developing countries.

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Section: Resultsmentioning

confidence: 99%

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

Newenham‐Kahindi

Shapiro

et al. 2013

Global Strategy Journal

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“…This is because up to now, most MNE/FDI research has focused on FDI made by MNEs from developed economies, and 'market-supporting institutions such as pro-OFDI policies by Western governments are now taken for granted and almost "invisible" ' (Peng, Wang, and Jiang, 2008: 927). As recently as in the 1960s and the 1970s, the U.S. and U.K. governments restricted OFDI (De Buele and Van Den Bulcke, 2010). As recently as in the 1960s and the 1970s, the U.S. and U.K. governments restricted OFDI (De Buele and Van Den Bulcke, 2010).…”

Section: The Role Of Home Country Governmentsmentioning

confidence: 99%

“…From an institutionbased view, since MNEs are affected by the 'rules of the game' both at home and abroad, the role of home country governments of the MNEs obviously cannot be ignored (Peng et al, 2008: 927). As recently as in the 1960s and the 1970s, the U.S. and U.K. governments restricted OFDI (De Buele and Van Den Bulcke, 2010). Yet, there is hardly any recent research attention devoted to the role of home country governments of MNEs.…”

Section: The Role Of Home Country Governmentsmentioning

confidence: 99%

The global strategy of emerging multinationals from China

Peng

2012

Global Strategy Journal

398

367

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The global strategy of multinational enterprises (MNEs) from China started to emerge recently. While sizable components of their strategy and behavior are consistent with what we observe of MNEs from other countries, Chinese MNEs are characterized by three relatively unique aspects: (1) the previously underappreciated role played by the home country governments of MNEs as an institutional force, (2) the challenge of going abroad in the absence of significantly superior technological and managerial resources, and (3) the rapid adoption of (often high‐profile) acquisitions as a primary mode of entry. Overall, this article argues that these three relatively unique aspects of emerging multinationals from China will have significant ramifications for future theory building and empirical efforts of the global strategy research community. Copyright © 2012 Strategic Management Society.

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“…Since developing countries encourage and reward indigenous technological efforts, providing favourable policies (De Beule et al, 2010) to motivate DMNEs to pursue technological development in their home market (Chaminade and Vang, 2008), these companies naturally seek to integrate the knowledge they have acquired internationally into their existing knowledge stocks and to concentrate on technological development at home (Child and Rodrigues, 2005). Thus, a primary goal of seeking knowledge overseas is to integrate it into the current knowledge stock to enhance innovativeness.…”

Section: Literature Backgroundmentioning

confidence: 99%

The impact of international R&D on home-country R&D for Indian multinationals.

Beule¹,

Somers²

2017

Transnational Corporations

Self Cite

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Extant research on internationalization of research and development (R&D) has notexamined what the impact of foreign R&D investments is for the investing corporate parent firms, in particular on domestic R&D investments. The aim of this paper is to examine the effectiveness of international knowledge sourcing through foreign R&D in an empirical analysis of the effects of foreign R&D investments on domestic R&D intensity for a panel of Indian firms. The paper specifically investigates the importance and impact of the role and the location of foreign R&D centres on parent-company R&D by analysing differences between foreign-technology-seeking and foreigntechnology-exploiting R&D, and between centres in advanced countries and in developing countries. The analysis finds contrasting results between advanced and developing countries and between technology-exploring and technology-exploiting investments.

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Changing Policy Regimes in Outward Foreign Direct Investment: From Control to Promotion

Cited by 16 publications

References 32 publications

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

The global strategy of emerging multinationals from China

The impact of international R&D on home-country R&D for Indian multinationals.

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