MNCs and Developmentalism: Domestic Structures as an Explanation for East Asian Dynamism

Clark, Cal; Chan, Steve

doi:10.1007/978-1-349-14121-0_6

Cited by 5 publications

(3 citation statements)

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“…A number of studies (UNCTAD, 1999;Kofele-Kale, 1992;Clarke and Chan, 1995) argue that restrictive foreign investment policies will only be effective if there is sufficient bureaucratic and political capacity to implement such policies effectively. This means that the bureaucracy must have the competence to select sectors where local industry will benefit from a joint venture requirement and must be sufficiently insulated from political pressures to ensure that joint venture partners are selected by foreign investors on business grounds rather than as a result of political manipulation.…”

Section: Maintenance Of Joint Venture Policiesmentioning

confidence: 99%

Why did China Benefit from a Joint Venture Policy? A Case Study of Shanghai

Bishop¹

2007

China and World Economy

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Mandatory joint venture requirements have played an important role in many developing countries' foreign investment policies. However, such policies have been criticized in some of the economic literatures on the grounds that they deter investment and lead to the development of inefficient industries. A significant amount of foreign direct investment in Shanghai has been in the form of joint ventures. Yet, by many measures, Shanghai has benefited enormously. This article argues that there are three reasons to explain Shanghai's successful use of the joint venture for its industrial development. First, local firms and industries have had the capability and willingness to learn from joint ventures and other foreign invested firms. Second, the joint venture policy has been more likely than not to have "crowded in" local investment rather than crowd it out. Third, investment authorities in Shanghai have had sufficient bureaucratic capacity and political insulation to prevent the joint venture policy from being manipulated by rent seekers. Copyright 2007 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

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Section: Maintenance Of Joint Venture Policiesmentioning

confidence: 99%

Why did China Benefit from a Joint Venture Policy? A Case Study of Shanghai

Bishop¹

2007

China and World Economy

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“…Dependency theory sees multinational corporations (MNCs) as exploiting weak Third World nations (Bornschier and Chase-Dunn 1985); the neoclassical approach sees their activities as promoting growth via market relationships by introducing capital and technology into poor economies; and statists argue that government regulatory initiatives are the prime determinant of whether MNCs will operate in a positive or negative manner for a local economy. Asia provides a plethora of varying cases that mock all these theoretical traditions, thereby suggesting that we need to look further than just state and market in understanding developmental dynamics (Chan and Clark 1995).…”

Section: Mncs In Asian Political Economies: a Fly In Everybody's Ointmentioning

confidence: 99%

“…This should turn our attention from the grand level of culture to the much less macro one of institutions (Clark and Chan 1995;Steinmo et al 1992;Vogel 1991). For example, Taiwan's formal financial system was not in line with the island's industrial structure; thus, the emergence of the curb market was probably necessary for the take-off in SMEs that occurred in the 1960s.…”

Section: Beyond the Developmental Statementioning

confidence: 99%

The Developmental Roles of the State: Moving Beyond the Developmental State in Conceptualizing Asian Political Economies

Clark

Chan

1994

Governance

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This article examines the role the state has played in the development of a variety of Asian nations through a series of "paired comparisons" to evaluate the model of the developmental state that has become prevalent in the analysis of East Asian political economy. The cases included in the study indicate that neither the state nor the market (as argued by neoclassical economists) can explain developmental outcomes by itself. Too many strong and interventionist states succeeded to gainsay the idea that economic competitiveness can be manipulated. However, the statist faith in strong and autonomous developmental states does not fare very well either. Strong states failed as well as succeeded. In fact, the strongest and most autonomous states may well be in the greatest danger of degeneration because they can resist pressures for change and can use their powers to become a "predator" over society. In addition, quite a few of these mini case studies directly imply that the nature of society is an important variable in determining how well a political economy operates. Thus, the case for "bringing society back in" appears to be a strong one.The study of the political economy of development has been marked by several debates between competing paradigms that revolve around opposite answers to dichotomous questions. From the late 1960s through the early 1980s the field was dominated by the debate between modernization and dependency theory about whether capitalism promoted or perverted development (Caporaso and Levine 1992;Randall and Theobald 1985). Neither of these approaches, it might be noted, assigned much analytic importance to states or to traditional cultures and institutions. Modernization theory believed that both state interference and traditional institutions hindered the operation of capitalist markets, while dependentistas argued that the economic dynamics of capitalism created social and political institutions, so that governments and cultures were only epiphenomenal.This debate, unfortunately, increasingly became a dialogue of the deaf. Moreover, the assumptions of both approaches were challenged by the rapid growth that occurred in a few places in the Third World, most particularly East Asia. This ultimately led to a call for "bringing

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Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?

Joshua

Bekun

Adedoyin

2020

Environ Sci Pollut Res

102

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This study examines the role of industrialization in the energy-growth-FDI nexus for the case of South Africa using data over the period 1970 to 2018. The empirical exercise was conducted using Pesaran Autoregressive Distributed Lag (ARDL) bounds testing approach. To accomplish our study objective, we analyze stationarity properties of the series using the unit root test after which we applied Bayer-Hanck (B-H) combined technique to cointegration to assess whether a long-run relationship exists among the series. Empirical results show that a 1% change in FDI account for 0.002% and 0.013% increase in economic expansion in the short-and long-run respectively. Also, a 1% increase in coal consumption influence GDP negatively by 0.083% and 0.207% in the short and long run respectively. Furthermore, a 1% increase in total natural resource rent positively affects GDP by 0.02% and 0.05% respectively in the short and long run. Industrialization, on the other hand, demonstrates a positive and significant impact on the economic growth process both in the short and long run. Industrialization contributes 0.506% and 1.274% to economic expansion both in the short and long run respectively. The causality tests suggest that a one-way causal link running from FDI to industrialization and from industrialization to coal consumption exists. Finally, FDI inflow drives total natural resource rents in South Africa. This study also gives reliable growth and energy policy proposals to policymakers applicable to countries around the globe.

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MNCs and Developmentalism: Domestic Structures as an Explanation for East Asian Dynamism

Cited by 5 publications

References 0 publications

Why did China Benefit from a Joint Venture Policy? A Case Study of Shanghai

Why did China Benefit from a Joint Venture Policy? A Case Study of Shanghai

The Developmental Roles of the State: Moving Beyond the Developmental State in Conceptualizing Asian Political Economies

Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?

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