Viewpoint escape FDI from emerging markets: clarifying and extending the concept

Enderwick, Peter

doi:10.1108/ijoem-11-2016-0325

Cited by 14 publications

(14 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Other recent studies that emphasized on the need for foreign capital also focused on foreign capital inflows and FDI (see e.g. Enderwick, 2017 for some emerging markets; Kumari and Sharma, 2017 for a panel of developing countries; Ramasamy et al , 2017 for a panel of countries; Godwin and Cook, 2018 for UK; Hakimi and Hamdi, 2017 for MENA countries; Padilla-Perez and Nogueira, 2016 for small developing economies; White III et al , 2015 for South East Asia). Against this background, it becomes pertinent to ascertain the contributions and impact of foreign aid in the form of ODA on capital formation in Nigeria.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of capital formation and foreign aid nexus in Nigeria

Ogbuabor

Orji

Mbonu

2019

IJOEM

View full text Add to dashboard Cite

Purpose The issue of foreign aid has continued to gain renewed economic cum political attention in the early years of the twenty-first century. At a summit, popularly known as the Millennium Summit, which took place in 2000, there was an agreement by the international community concerning some goals known as the Millennium Development Goals which were targeted to be reached by the year 2015 but have now been replaced by the Sustainable Development Goals. Against this background, it becomes pertinent to ascertain the contributions and impact of foreign aid in the form of Overseas Development Assistance (ODA) on capital formation in Nigeria. This is an area of foreign aid studies that has been ignored by many researchers. Most studies are seen delving into analyzing the aid-growth nexus without evaluating the transmission link through which foreign aid transmits to affect economic growth. There is paucity of studies on the aid-capital nexus. The paper aims to discuss these issues. Design/methodology/approach The empirical method used was autoregressive distributed lag (ARDL) model. Findings The empirical results from the ARDL model estimations show that foreign aid, which is proxied by ODA, has a positive and significant impact on capital formation in Nigeria for the years under analysis. The result of the Granger causality test shows that a bi-directional granger causality exists between foreign aid and gross fixed capital formation (GFCF). Originality/value Empirical results from the ARDL model estimations show that foreign aid, which is proxied by ODA, has a positive and significant impact on capital formation in Nigeria for the years under analysis. The result of the Granger causality test shows that a bi-directional Granger causality exists between foreign aid and GFCF. It is therefore recommended that government should make serious efforts toward the implementation and effective utilization of foreign aid. Appropriate policy measures that would monitor the maximum and effective utilization of foreign aid are also required.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Analysis of capital formation and foreign aid nexus in Nigeria

Ogbuabor

Orji

Mbonu

2019

IJOEM

View full text Add to dashboard Cite

show abstract

“…Many scholars imply some notion of contestation in how the concept is used, for example Luo and Tung (2007:487) when they argue that some South African MNCs "have to operate globally to avoid governmental control over foreign exchange usage". Similarly, Enderwick (2017) argues that escape FDI can result from "discriminatory" government policy. The notion of contestation is clearly implicit in such arguments.…”

Section: Contestationmentioning

confidence: 99%

Escape FDI and the dynamics of a cumulative process of institutional misalignment and contestation: Stress, strain and failure

Barnard

Luiz

2018

Journal of World Business

View full text Add to dashboard Cite

We argue that escape foreign direct investment (FDI) happens when unknown future "rules of the game" cause concern about the continued productive capacity of the economy. Adapting the stressstrain-fail model of materials failure, we argue that escape FDI is a process with three cumulative phases. Conditions for escape FDI (stress) are created by institutional deterioration and contained contestation. Limited escape FDI (strain) results from periods of societal instability and/or inadequate institutional reforms. Extensive escape FDI (failure) results from pervasive societal instability and/or fundamental changes in institutions. Using a historical approach, we develop these propositions for South Africa, 1956 to 2012.

show abstract

“…Most research on FDI has focused on location factors (Mucchielli and Mayer, 2004), the conditions of companies that perform FDIs (Padilla-Perez and Gomes Nogueira, 2016) or the conditions that facilitate or constrain FDIs, such as laws, government funding in the recipient country and incentives. Studies also highlight the effects of attracting FDI to a country (Abdouli and Hammami, 2017; Enderwick, 2017; Hakimi and Hamdi, 2017; Kumari and Sharma, 2017; White et al , 2015) but not the effects of the project itself on the management process. Other authors have considered a territory to be a product for sale that should maximize its sale price to a foreign investor by applying the techniques of yield management (Carluer and Foignet, 2012; Foignet and Carluer, 2009).…”

Section: Introductionmentioning

confidence: 99%

Foreign direct investment in an emerging country: a Brazilian case of a triple helix as practice

Coussi

Faccin

Balestrin

2018

IJOEM

View full text Add to dashboard Cite

Purpose The purpose of this purpose is to understand the territorial management process behind the implementation and anchoring of a foreign direct investment (FDI) project in an emerging country during its project life cycle. This research contributes to the “strategy as practice” and “triple helix” research fields. Design/methodology/approach The authors use qualitative and single-case research with secondary public sources and confirmatory interviews. The case is related to the process of implementing and anchoring a joint venture in the semiconductor industry between a South Korean company and a Brazilian company. The relations between the university, the companies and the government are analyzed in terms of supporting territorial attractiveness. Findings Viewing the attraction of FDI in collaborative terms provides new empirical evidence and explanations of the phenomenon. From this single-case study, the authors can offer the following research propositions, which can be further developed and tested: P1 – the use of a triple helix strategy is an attractive factor when applying an exogenous investment; P2: the entrepreneurial university is an attractive factor when applying an exogenous investment; and P3: contemporary public policies must be involved in complex networks with the community to achieve success when locating and anchoring an exogenous investment. Research limitations/implications One of the main limitations is linked to the secondary data sources for the reconstruction of the case narrative. Secondary data sources omit important details when reporting events. The authors tried to overcome this limitation by using multiple sources and providing different types and breadth of details; for the triangulation stage, the authors held interviews to confirm the data collected in the newspapers and to look for details that could have passed unnoticed. Additionally, it should be noted that the confirmatory interviews were retrospective. An intensive interview promotes the clarification of each participant’s interpretation of his or her own experience and therefore represents a very useful method for interpretative research. However, the limitation is that between the experience and the date of the interviews, the interviewee undergoes many other experiences, learning and contexts that modify his or her point of view and way of interpreting what happened in the past. Finally, in this study, the authors have chosen a “Gioia method” template rather than an “Eisenhardt” template (Langley and Abdallah, 2011) and one impression may be the result of a limitation of this template, as pointed out by Langley and Abdallah (2011) “This template has limitations too. One potential limitation that seems, however, not to have hindered these researchers concerns the challenge of convincing readers about the transferability and relevance of the findings given the propensity to study single cases.” In an interpretive research, it is argued that it is the depth of contextual detail in a case study that provides the understanding necessary for a reader to judge whether the theoretical implication is pertinent. Practical implications This paper presents a case of success in attracting FDI in emerging countries. The authors emphasize the mechanisms, agreements and difficulties experienced by the government and the local community involved in the management process for the implementation and anchoring of an FDI project. This study offers a valuable resource for FDI attraction for public sector managers and society members. The management of the implementation process of an FDI project life cycle leads to a “territorial triple helix” model that can be used by emerging countries to promote sustainable economic development in high-tech industries. By choosing the theoretical choice of narrative, the authors have a better understanding of the process for anchoring FDI because the authors can identify key events and present information on how territories develop their policies. Social implications The example of the Brazilian experience in the management of the FDI anchor of the semiconductor industry implies a series of learning for the emerging economies, particularly in terms of the possibility to discover new features to increase the attractiveness of their FDIs. Usually when the authors think about or consult the literature on attracting and anchoring FDI projects, the authors find that countries are concerned about market size, trade openness or interest rate data. However, in the case of HT Micron, an unknown or untouched criterion can be added: the collaboration between the agents of society. Originality/value The present research challenges the linear views of project life and displays a successful project that follows a quite different path. This study is original because it provides public sector managers and society members with a valuable resource for FDI implementation and anchoring. Usually when the authors think about or consult the literature on attracting and anchoring FDI projects, the authors find that countries are concerned about market size, trade openness or interest rate data. However, in the HT Micron case, it is possible to add an unknown or untouched criterion: the collaboration between agents of society.

show abstract

Viewpoint escape FDI from emerging markets: clarifying and extending the concept

Cited by 14 publications

References 42 publications

Analysis of capital formation and foreign aid nexus in Nigeria

Analysis of capital formation and foreign aid nexus in Nigeria

Escape FDI and the dynamics of a cumulative process of institutional misalignment and contestation: Stress, strain and failure

Foreign direct investment in an emerging country: a Brazilian case of a triple helix as practice

Contact Info

Product

Resources

About