Foreign direct investment in economic transition: the changing pattern of investments

Lankes, Hans Peter; Venables, Anthony J.

doi:10.1111/j.1468-0351.1996.tb00176.x

Cited by 241 publications

(154 citation statements)

References 2 publications

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“…Moreover, early entrants may even be able to influence the local regulatory environment in their favour. The perceived importance of first-mover advantages is highlighted by Lankes and Venebles (1996) who report a bimodal distribution on the first-mover motive: very important for 39% of investors, especially for those targeting the local market, but unimportant for most others.…”

Section: Strategies For Timing and Acceleration Of Entrymentioning

confidence: 99%

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International Business Research on Transition Economies

Meyer¹

2001

Oxford Handbook of International Business

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Focuses on challenges faced by businesses in the transition context, drawing on research beyond the main business journals. First, the microeconomic aspects of economic transition are summarized, taking the development of new institutions as starting points as they set the stage for developments in the enterprise sphere. Next, multinational enterprises entering the region are discussed, considering their motives, and their strategies for dealing with the specific context. Lastly, some managerial challenges are addressed that arise for multinational enterprises operating in the region.

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Section: Strategies For Timing and Acceleration Of Entrymentioning

confidence: 99%

“…Meyer 1998a, Pye 1998, OECD 1995, Lankes and Venebles 1996. Many MNEs considering entry expect considerable long-term growth of demand, especially as the income of the middle class, their prime customers, grows faster than the average measured by GDP (Batra 1997 EBRD 1996).…”

Section: Motivationsmentioning

confidence: 99%

International Business Research on Transition Economies

Meyer¹

2001

Oxford Handbook of International Business

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“…Lankes andVenables, 1996, Abraham andKonings, 1999 it is worth mentioning -as a background -the distinction that is made in the literature between horizontal and vertical FDI because this is also related to labour cost differentials in different locations. The vertical FDI viewpoint is that the MNE locates in a particular place to take advantage of international factor-price differences (e.g.…”

Section: Related Literaturementioning

confidence: 99%

Do Multinational Enterprises Relocate Employment to Low-Wage Regions? Evidence from European Multinationals

2006

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This paper analyses the employment behavior of multinational enterprises (MNEs) in Europe.To this end we use a unique firm level panel data set of more than 1,000 European multinational parent enterprises and their affiliates. The affiliates are located either in the European Union divided into (North, South), Central and Eastern Europe or both.We find that for parent firms operating in the manufacturing sector the elasticity of parent employment with respect to North EU affiliates' labour costs is positive and statistically significant, ranging from 0.03 to 0.08, depending on the specification considered. This implies employment substitution between parents and their North EU based affiliates takes place in response to wage cost differentials between the parent and its North EU based affiliates. This substitution effect becomes stronger when affiliates are operating in a different sector than their parent firm.However, we find no evidence for such substitution effects between parent employment and its affiliates that are located in low wage regions in the EU and in Central and Eastern Europe.Furthermore, substitution effects are absent for parent firms operating in the non-manufacturing sector.Our results suggest that on average during the period of this study competition from low wage countries in Central and Eastern Europe and the South of the EU did not contribute to a relocation of domestic jobs to these low wage regions. JEL classification:F23, J23

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“…For a number of reasons, listed below, CEE-NMS differ from other OECD countries or incumbent EU countries and it will be argued that these differences may be conducive to the fact that CEE-NMS are more likely to use company taxation as an instrument to attract foreign investment: § The share of efficiency FDI Following a number of surveys (Lankes and Venables, 1996;Altzinger, 1998 on Austrian FDI; Lankes and Wes, 2001; for an overview see Szanyi, 1999) on the motives for manufacturing FDI in the CEE-NMS foreign investment enterp rises grosso modo can be separated into re-export -oriented and market-oriented companies. According to this division the most important motives for FDI were low production costs in the CEE-NMS on the one hand and gaining market access (to the host market or to the CEE-NMS region in total) on the other hand.…”

Section: 2mentioning

confidence: 99%