Denna webbplats lagrar cookies i begränsad omfattning. Genom att besöka sidan, godkänner du villkoren i vår integritetspolicy. Läs mer

Journal of Asian Economics

EU – China and the Non–transparent Race for Inward FDI

Tidskriftsartikel
Referens
Oxelheim, Lars och Pervez Ghauri (2008). ”EU – China and the Non–transparent Race for Inward FDI”. Journal of Asian Economics 19(4), 358–370. doi.org/10.1016/j.asieco.2008.04.001

Författare
Lars Oxelheim, Pervez Ghauri

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 nontransparent 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.

Lars Oxelheim

+46 (0)8 665 4527
+46 (0)70 861 9361
lars.oxelheim@ifn.se