Multinational companies from transition economies and their outward foreign direct investment

Abstract

Multinational companies (MNCs) based in 26 post-communist transition economies (PTEs) emerged during the 1990s. Their outward foreign direct investment (OFDI) boomed dramatically from 2000 to 2007 in these countries, and then muddled through ence is revealed in a sample of 15 PTEs for which data are available from 2000 to 2015. Most of these economies appear to be on the brink of moving from the second to the third stage of Dunning's investment development path. The geographical distribution of their OFDI favors host countries located in other PTEs, developed market economies, and tax havens while their industrial structure is more concentrated on services rather than on manufacturing and the primary sector. PTE-based MNCs primarily adopt a strategy of market-seeking OFDI. Econometric testing shows that push factors are major determinants of OFDI. The results demonstrate that OFDI is determined by the home country's level of economic development, the size of its home market, and its rate of growth as well as technological variables: OFDI decreases with an increase in the number of scientists in the home economy and with an increase in the share of high-tech products in overall exports, exhibiting a negative technological gap. A lagged relationship between OFDI and previous inward FDI suggests that Mathews' linkage-leverage-learning theory is relevant in the case of PTEs.

Empirical Study of the Impact of Outward Foreign Direct Investment on Water Footprint Benefit in China

“…The pathways for these impacts of OFDI are that OFDI improves the per capita water footprint and the water footprint land density through (1) an economic scale effect, (2) an export growth effect, (3) domestic investment effect, and (4) consumption effect. It reduces the water footprint intensity through (5) a technological progress effect, (6) a factor allocation effect, (7) an industrial structural effect, and (8) an income effect. It increases the water footprint abandonment rate through (9) the environmental pollution effect and (4) the consumption effect.…”

“…These studies have generally found that the technological progress effects of OFDI are heterogeneous across different regions, different industries, and enterprises with different ownership characteristics. As for the industrial structure effect of OFDI, most studies have found that OFDI has played an optimizing role in the home country's industrial structure (Pan and Yuan, 2016, Andreff, 2017, Nie, 2017, Zhao and Ye, 2018) [6][7][8][9]. However, there is no clear consensus regarding the industrial structural effect of OFDI.…”

Impacts of OFDI on Host Country Energy Consumption and Home Country Energy Efficiency Based on a Belt and Road Perspective

“…(2) In terms of economic development, most scholars have refined their research objectives to focus on the factors of production. There are significant impacts of OFDI on the labour force [24], technological innovation [25], and energy consumption. Meanwhile, the impact of factor distortions on OFDI is also of great concern [26].…”

The Influence of Foreign Direct Investment and Public Incentives on the Socio-Economic Development of Regions: An Empirical Study from the Czech Republic

“…This change is intended to bring greater benefits from supported foreign investment, which will increase the competitiveness of regions. Andreff (2017) proves that the promotion of science and research as well as the development of high-tech industries led to a decline in FDI outflow. For this reason, public policy was to support R&D and hightech sectors, for example, by amending the setting of investment incentives at a national and regional level in the priorities of regional innovation strategies.…”