Komparativ studie om Singapore och Islands mottagande av Foreign Direct Investments
(2021) STVK02 20202Department of Political Science
- Abstract
- This article analyses why Singapore compared to Iceland, has received greater amount of FDIs during the time from year: 1977-2007. FDIs have often been proven to increase a state’s economy since it is used as a tool for states to establish a long term relationship and trade with each other. Moreover, New Economic Geography (NEG), a theory written by Paul Krugman will be used to prove that the geographical position of a country or region is crucial for economic growth. Furthermore, by applying the theory on this study it is aiming to prove that the theory can be used to explain why Iceland received less amount of FDI’s compared to Singapore. The study came to the conclusion that several factors affected the amount of FDIs, first that new... (More)
- This article analyses why Singapore compared to Iceland, has received greater amount of FDIs during the time from year: 1977-2007. FDIs have often been proven to increase a state’s economy since it is used as a tool for states to establish a long term relationship and trade with each other. Moreover, New Economic Geography (NEG), a theory written by Paul Krugman will be used to prove that the geographical position of a country or region is crucial for economic growth. Furthermore, by applying the theory on this study it is aiming to prove that the theory can be used to explain why Iceland received less amount of FDI’s compared to Singapore. The study came to the conclusion that several factors affected the amount of FDIs, first that new policys that were conducted in the governments in both countries was decisive in order to receive greater amount of FDIs. In Singapore the new policies were providing benefits for foreign enterprises to do FDI in Singapore. New Economic Geography explains that it is a result of their geographical position, they knew they could be international financial hub for countries not only in Asia but in rest of the world. Second factor that affected the amount of FDIs in Singapore compared to Iceland was the availability of labour intensive goods. Since both of the countries have focused on the finical, and business sector foods, textiles and other needs should be easily accessible from a country not too far away in order to reduce the amount of money spent on transportation costs. Singapore was geographically positioned close to countries who export these goods. Iceland on the other hand was not close to states that could export these goods which NEG would explain as a result of the importance of have access to goods and services within the close region in other to increase the economy. The third factor that affected the amount of FDIs is education. NEG explains that education contributes to economic growth since knowledge leads to more innovative technology and more efficient work. Furthermore, according to PISA examinations that Singapore was ranked above Iceland which explains further why Singapore has received more FDIs compared to Iceland. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9033802
- author
- Sjöberg, Sofia LU
- supervisor
- organization
- course
- STVK02 20202
- year
- 2021
- type
- M2 - Bachelor Degree
- subject
- keywords
- Singapore, Iceland, Foreign Direct Investment, New Economic Geography, Paul Krugman, domestic policies, labour intensive goods, education
- language
- Swedish
- id
- 9033802
- date added to LUP
- 2021-05-25 12:46:58
- date last changed
- 2021-05-25 12:46:58
@misc{9033802,
abstract = {{This article analyses why Singapore compared to Iceland, has received greater amount of FDIs during the time from year: 1977-2007. FDIs have often been proven to increase a state’s economy since it is used as a tool for states to establish a long term relationship and trade with each other. Moreover, New Economic Geography (NEG), a theory written by Paul Krugman will be used to prove that the geographical position of a country or region is crucial for economic growth. Furthermore, by applying the theory on this study it is aiming to prove that the theory can be used to explain why Iceland received less amount of FDI’s compared to Singapore. The study came to the conclusion that several factors affected the amount of FDIs, first that new policys that were conducted in the governments in both countries was decisive in order to receive greater amount of FDIs. In Singapore the new policies were providing benefits for foreign enterprises to do FDI in Singapore. New Economic Geography explains that it is a result of their geographical position, they knew they could be international financial hub for countries not only in Asia but in rest of the world. Second factor that affected the amount of FDIs in Singapore compared to Iceland was the availability of labour intensive goods. Since both of the countries have focused on the finical, and business sector foods, textiles and other needs should be easily accessible from a country not too far away in order to reduce the amount of money spent on transportation costs. Singapore was geographically positioned close to countries who export these goods. Iceland on the other hand was not close to states that could export these goods which NEG would explain as a result of the importance of have access to goods and services within the close region in other to increase the economy. The third factor that affected the amount of FDIs is education. NEG explains that education contributes to economic growth since knowledge leads to more innovative technology and more efficient work. Furthermore, according to PISA examinations that Singapore was ranked above Iceland which explains further why Singapore has received more FDIs compared to Iceland.}},
author = {{Sjöberg, Sofia}},
language = {{swe}},
note = {{Student Paper}},
title = {{Komparativ studie om Singapore och Islands mottagande av Foreign Direct Investments}},
year = {{2021}},
}