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Where Does FDI Go? FDI Determinants in the Context of Economic Sanctions

Parshina, Aleksandra LU (2024) EKHS21 20241
Department of Economic History
Abstract
Economic sanctions, a key foreign policy tool in global diplomacy, present both challenges and opportunities, yet relatively underexamined in scholarly research. Unlike previous sanctions aimed at natural resources, the US-China trade war targets labour-intensive manufacturing, creating unique opportunities for investment relocation to labour-abundant countries. Vietnam’s success in attracting substantial FDI after the trade war escalation highlights the extensive impact of sanctions on third countries. Using an analytic narrative this study compares
Vietnam and the Philippines in terms of their attractiveness to FDI post-trade war escalation, aiming to identify FDI determinants in the context of investment diversion prompted by... (More)
Economic sanctions, a key foreign policy tool in global diplomacy, present both challenges and opportunities, yet relatively underexamined in scholarly research. Unlike previous sanctions aimed at natural resources, the US-China trade war targets labour-intensive manufacturing, creating unique opportunities for investment relocation to labour-abundant countries. Vietnam’s success in attracting substantial FDI after the trade war escalation highlights the extensive impact of sanctions on third countries. Using an analytic narrative this study compares
Vietnam and the Philippines in terms of their attractiveness to FDI post-trade war escalation, aiming to identify FDI determinants in the context of investment diversion prompted by sanctions. The findings reveal that context plays a significant role in determining FDI location. Moreover, in the context of FDI relocation during the US-China trade war, institutions –
particularly the investment climate for establishing enterprises and the stance towards FDI compared to domestic investments – emerged as the pivotal factor influencing investment
relocation. These institutional factors not only impact the level of transparency and predictability but also shape the overall perception of an economy as an FDI destination. (Less)
Please use this url to cite or link to this publication:
author
Parshina, Aleksandra LU
supervisor
organization
alternative title
A Comparative Analysis of Vietnam’s and the Philippines’ Divergent Success in Attracting FDI Amid the US-China Trade War
course
EKHS21 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
economic sanctions, FDI determinants, trade war, Vietnam, the Philippines
language
English
id
9184800
date added to LUP
2025-06-03 09:43:48
date last changed
2025-06-03 09:43:48
@misc{9184800,
  abstract     = {{Economic sanctions, a key foreign policy tool in global diplomacy, present both challenges and opportunities, yet relatively underexamined in scholarly research. Unlike previous sanctions aimed at natural resources, the US-China trade war targets labour-intensive manufacturing, creating unique opportunities for investment relocation to labour-abundant countries. Vietnam’s success in attracting substantial FDI after the trade war escalation highlights the extensive impact of sanctions on third countries. Using an analytic narrative this study compares 
Vietnam and the Philippines in terms of their attractiveness to FDI post-trade war escalation, aiming to identify FDI determinants in the context of investment diversion prompted by sanctions. The findings reveal that context plays a significant role in determining FDI location. Moreover, in the context of FDI relocation during the US-China trade war, institutions – 
particularly the investment climate for establishing enterprises and the stance towards FDI compared to domestic investments – emerged as the pivotal factor influencing investment 
relocation. These institutional factors not only impact the level of transparency and predictability but also shape the overall perception of an economy as an FDI destination.}},
  author       = {{Parshina, Aleksandra}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Where Does FDI Go? FDI Determinants in the Context of Economic Sanctions}},
  year         = {{2024}},
}