The nature and determinants of export-oriented direct foreign investment in a developing country: A case study of Taiwan

Riedel, James

doi:10.1007/bf02696445

Cited by 60 publications

(29 citation statements)

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“…Dunning (1996: 38) observes that 'real-wage costs are more likely to influence the mode of servicing developing country markets than developed country markets'. Riedel (1975) found that relatively lower costs of labour had been one of the key determinants of export-oriented FDI in Taiwan. Research on the determinants of FDI in developing countries also indicates that labour cost differentials were a significant determinant of FDI in the 1970s and 1980s (eg Schneider and Frey, 1985;Summary and Summary, 1995;Wheeler and Moody, 1992;London and Ross, 1995).…”

Section: Wage Ratementioning

confidence: 98%

Understanding the Strategic Motivations of Finnish Manufacturing FDIs in Emerging Asian Economies

Tahir

Larimo

2005

Asian Bus Manage

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The purpose of this paper is to empirically investigate how ownership-specific, location-specific, internalization and strategic advantages have influenced the location strategies of Finnish firms in 10 South and Southeast Asian countries from 1980 to 2000. Despite the increased interest in foreign direct investments (FDIs), very few studies have been undertaken to empirically analyse influential ownershipspecific, location-specific and internalization (OLI) variables together with strategic advantages in order to assess FDI decision-making among foreign investors. To the best of our knowledge, strategic motives particularly have remained primarily anecdotal. This paper is apparently the first attempt to analyse how the above OLI advantages have influenced Finnish manufacturing firms in Asian countries. The research results indicate that large parent firm size, large international experience, large market size in the target country, low cultural distance and low wage rates increase the probability of market-seeking and efficiency-seeking FDIs. It has also been found that low levels of inflation, low levels of risk and a high level of exchange rate fluctuation in the target country increase the probability of riskreduction seeking FDIs. Finally, the results show that high R&D intensity in the parent firm increases the probability of knowledge-seeking FDIs in Asian countries.

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Section: Wage Ratementioning

confidence: 98%

Understanding the Strategic Motivations of Finnish Manufacturing FDIs in Emerging Asian Economies

Tahir

Larimo

2005

Asian Bus Manage

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“…Este resultado foi encontrado para Coréia do Sul (Cohen, 1975), Taiwan (Riedel, 1975), Peru (Vaitsos, 1976, índia (Subrahamanian & Mohana, 1977), México (Jenkins, 1977) e Brasil (Newfarmer & Marsh, 1981). Diferenças não significativas foram encontradas para Indonésia (Reuber et alii, 1973), Cingapura (Cohen, 1975), Costa Rica ), índia, Quênia, Jamaica, Irã, Colõmbia e Malãsia (Lall & Streeten, 1977).…”

Section: Introductionunclassified

Mercado interno e externo: performance comparativa de empresas nacionais privadas e multinacionais na indústria de transformação

Gonçalves

1983

Rev. adm. empres.

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“…Consequently, "the supply of cheap labor in developing countries has always been regarded as one of their comparative advantages in international trade" and FDI in certain industries (Agarwal 1980, p. 762). Riedel (1975) found that relatively lower wage costs have been a primary determinant of FDI in Taiwan, and his finding is supported by Donges' (1976Donges' ( , 1980 studies in Spain and Portugal. Agarwal (1978) showed a significant positive correlation between German FDI and relative wage costs in Brazil, India, Iran, Israel, Mexico, and Nigeria.…”

Section: Location Factorsmentioning

confidence: 57%

What they learned from the crash: A comparison of Korean firms’ FDI before and after the 1997 financial crisis

2006

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■ This study examines the effect of the 1997 Asian financial crisis on the foreign direct investment (FDI) activities of Korean firms. It identifies differences in their behavior before and after the crisis and examines the determinants of their FDI in terms of location factors, ownership factors, and strategic factors. Key Results■ The study reveals a drop after the crisis in oligopolistic reactions among chaebols (Korean business conglomerates). It shows that both before and after the crisis, a firm's international experience was a major determinant of Korean FDI, as were the market size and political risk that a potential host country presented. The result for tariff system also indicates that the role of tariff shifted after the crisis.

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The nature and determinants of export-oriented direct foreign investment in a developing country: A case study of Taiwan

Cited by 60 publications

References 0 publications

Understanding the Strategic Motivations of Finnish Manufacturing FDIs in Emerging Asian Economies

Understanding the Strategic Motivations of Finnish Manufacturing FDIs in Emerging Asian Economies

Mercado interno e externo: performance comparativa de empresas nacionais privadas e multinacionais na indústria de transformação

What they learned from the crash: A comparison of Korean firms’ FDI before and after the 1997 financial crisis

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