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EU-China and the non-transparent race for inward FDI

Oxelheim, Lars LU and Ghauri, Pervez LU (2008) In Journal of Asian Economics 19(2). p.358-370
Abstract
In this paper it is argued that the restructuring following the stiffer competition stemming from increased global integration will trigger a race between countries to attract inward foreign direct investment (FDI). It is further argued that this race consists of last minute efforts and tailor-made packages designed by governments and their agencies to temporarily improve their country's otherwise inferior profile. This race is non-transparent and the factors used to compete for inward FDI (the ‘elements’ of the race) deviate from those of long-term efforts to develop a favourable investment climate and improve productivity, as well as medium-term efforts such as lowering corporate taxes. The paper elaborates on the research problem of... (More)
In this paper it is argued that the restructuring following the stiffer competition stemming from increased global integration will trigger a race between countries to attract inward foreign direct investment (FDI). It is further argued that this race consists of last minute efforts and tailor-made packages designed by governments and their agencies to temporarily improve their country's otherwise inferior profile. This race is non-transparent and the factors used to compete for inward FDI (the ‘elements’ of the race) deviate from those of long-term efforts to develop a favourable investment climate and improve productivity, as well as medium-term efforts such as lowering corporate taxes. The paper elaborates on the research problem of properly understanding the drivers of inward FDI in the absence of data on the elements of the non-transparent race. It also addresses the economic policy problem following from this race with a scenario where a large share of global FDI ends up in China, putting the cohesion of the European Union (EU) at stake and triggering a regional race within China. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Inward FDI, China, European Union, Investment-diverting policies
in
Journal of Asian Economics
volume
19
issue
2
pages
358 - 370
publisher
Elsevier
external identifiers
  • scopus:48549097815
ISSN
1049-0078
DOI
10.1016/j.asieco.2008.04.001
language
English
LU publication?
yes
id
74656b1e-b25e-41ef-81f8-30c4bf732f83 (old id 1513977)
date added to LUP
2009-12-16 10:48:18
date last changed
2017-06-18 03:50:45
@article{74656b1e-b25e-41ef-81f8-30c4bf732f83,
  abstract     = {In this paper it is argued that the restructuring following the stiffer competition stemming from increased global integration will trigger a race between countries to attract inward foreign direct investment (FDI). It is further argued that this race consists of last minute efforts and tailor-made packages designed by governments and their agencies to temporarily improve their country's otherwise inferior profile. This race is non-transparent and the factors used to compete for inward FDI (the ‘elements’ of the race) deviate from those of long-term efforts to develop a favourable investment climate and improve productivity, as well as medium-term efforts such as lowering corporate taxes. The paper elaborates on the research problem of properly understanding the drivers of inward FDI in the absence of data on the elements of the non-transparent race. It also addresses the economic policy problem following from this race with a scenario where a large share of global FDI ends up in China, putting the cohesion of the European Union (EU) at stake and triggering a regional race within China.},
  author       = {Oxelheim, Lars and Ghauri, Pervez},
  issn         = {1049-0078},
  keyword      = {Inward FDI,China,European Union,Investment-diverting policies},
  language     = {eng},
  number       = {2},
  pages        = {358--370},
  publisher    = {Elsevier},
  series       = {Journal of Asian Economics},
  title        = {EU-China and the non-transparent race for inward FDI},
  url          = {http://dx.doi.org/10.1016/j.asieco.2008.04.001},
  volume       = {19},
  year         = {2008},
}