The Political Economy of Chinese Foreign Direct Investment in Developing Areas

Tuman, John P.; Shirali, Majid

doi:10.1111/fpa.12092

Cited by 46 publications

(29 citation statements)

References 24 publications

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“…The OLI model, or “eclectic theory,” is often employed to study the aggregate, cross‐national flow of FDI (Dunning, ). Reflecting a behavioral approach to the firm, the OLI model points to a number of economic and political factors that might influence the location decisions of multinational firms (see Dunning & Narual, ; Jensen et al, ; Montero, ; Tuman & Emmert, ; Tuman & Shirali, ). Here we complement the OLI model with the theory of asset and sector specificity (see Frieden, ; Shafer, , pp.…”

Section: Theoretical Approach and Review Of The Literaturementioning

confidence: 99%

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

Tuman

Erlingsson

2019

Growth and Change

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This study examines the subnational flow in foreign direct investment (FDI) to Mexican states, with a focus on the finished vehicle industry. Although prior studies have examined subnational FDI in Mexico, research on the automobile sector has been scant. Utilizing a framework associated with the theory of asset specificity, we examine the influence of human capital and labor conditions, infrastructure, subnational policies, and security. The study employs a data set on finished vehicle FDI across 31 states and the Federal district for the period of 2004–2014. We adopt a two‐part model. The first part, which includes all states and the Federal district, is estimated with pooled logistic and Firth logistic regressions. In the second part, we examine variation in levels of FDI among states selected for investment with pooled ordinary least squares with panel‐corrected and Driscoll Kraay standard errors. Labor conditions are significant for both state selection and levels of FDI, but education is influential only in the selection stage. In addition, states with trunk rail lines linked to the U.S. border are more likely to be selected and receive higher FDI. After controlling for these influences, murder and homicide rates, and state development have no significant effects.

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Section: Theoretical Approach and Review Of The Literaturementioning

confidence: 99%

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

Tuman

Erlingsson

2019

Growth and Change

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“…Prior studies of Chinese FDI in Latin America have suggested that state guidance has been associated with several objectives. These goals include promoting trade, deepening China’s global market access, and securing natural resources (Dussel Peters, 2012, 2019; Gallagher & Porzecanski, 2010; Hiratuka, 2019; Tuman & Shirali, 2017; Wise, 2016). We review briefly these national goals, with a focus on how each factor might shape subnational location decisions within Mexico.…”

Section: Theoretical Approach and Review Of The Literaturementioning

confidence: 99%

“…Over the course of the past 20 years, Chinese firms have increased their economic engagement with Latin America and the Caribbean. Although growth in trade between China and the region has been notable, there have also been significant inflows of Chinese foreign direct investment (FDI) to various Latin American countries (CEPAL, 2019; Dussel Peters, 2012; Gallagher & Porzecanski, 2010; Tuman & Shirali, 2017; Wise, 2016). Among the Latin American countries selected for Chinese FDI, Mexico has consistently ranked in the top two or three of the region’s host economies (National Bureau of Statistics, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Yet although few analysts would doubt the policy significance of Chinese investment in Mexico, the extant literature on the topic has been limited in several respects. Recent studies have tended to concentrate on the aggregate, cross‐national pattern of Chinese FDI flow to the region (e.g., Gallagher & Porzecanski, 2010; Tuman & Shirali, 2017; Urdinez et al, 2016; Wise, 2016). By contrast, there has been little quantitative study of the subnational determinants of Chinese FDI flows to Mexico or other Latin American countries .…”

Section: Introductionmentioning

confidence: 99%

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The Determinants of Chinese Foreign Direct Investment Flows in Mexican States, 2004–2014

Tuman¹,

Erlingsson²

2020

Latin American Policy

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Despite the growth of scholarship on Chinese outward foreign direct investment, we still know little about the determinants of it at the subnational level within developing countries. This article seeks to fill that gap in the literature through a study of Chinese investment across 31 Mexican states and Mexico City (formerly the Federal District). Focusing on the period of 2004 to 2014, the analysis employs a two‐part estimation method to understand why Chinese firms select some Mexican states for investment, and what drives the level of investment among states selected. The first part is estimated with pooled logistic and Firth logistic regression with adjustments for serial correlation. The second stage equations are estimated with pooled OLS with panel‐corrected and Driscoll‐Kray standard errors, and adjustments for serial correlation. We find that market size, education, and partisan control in state government exhibit an influence on both the selection stage and the level of foreign direct investment. The presence of deep‐water ports in a state is also important in the selection stage. After controlling for these influences, the models suggest that mining resources, homicides, unionization, state taxes, and other factors have no significant effect in either stage.

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“…One of these is part of the growing amount of Chinese investment overseas in food-producing enterprises in a planned strategy to address national food security issues. Whilst most Chinese foreign direct investment (FDI) has focused on natural resources in Africa and Latin America (Cui and Jiang, 2018;Tuman and Shirali, 2017), growing focus is now directed at agriculture, sometimes emotively characterised as 'land grabs' (Brautigam, 2015;Carter and Harding, 2015). In Australia, Chinese FDI rose by 12% in 2016 to reach A$15.4 billion, making Australia the second largest recipient of such investment (Ferguson et al, 2017).…”

Section: Cherry Futures: New Links Between China and Australiamentioning

confidence: 99%

Rural transformation: Cherry growing on the Guanzhong Plain, China and the Adelaide Hills, South Australia

Robinson

Song

2019

J. Geogr. Sci.

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This paper echoes a tradition in agricultural geography by focusing on a single crop: cherries. It illustrates how developments associated with globalisation and growing urban markets are reshaping rural areas. The interplay between global and local is investigated in two different contexts. A Chinese example reflects transformations affecting the countryside following national economic reforms. Focusing on the hinterland of Xi'an, capital of Shaanxi Province, it examines farmers' responses to the changing socio-political context and the rising size and wealth of the local market. Individual initiatives backed by government support have spawned localised concentrations of cherry growing and increased horticultural production. Farm-based tourism is creating new relationships between farmers and consumers, with farms becoming more diversified and multifunctional. The second example is the Adelaide Hills, South Australia, where cherry growing is increasingly combined with direct sales to consumers and gastronomic tourism. The paper addresses contrasts and similarities between the two examples in the interplay between global and local, and a 'multifunctional transition' in farming. Concluding remarks include reference to new economic links forged between China and Australia through relaxations on cherry imports to China and new patterns of Chinese foreign direct investment into Australian cherry production. A research agenda for future research is suggested.

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The Political Economy of Chinese Foreign Direct Investment in Developing Areas

Cited by 46 publications

References 24 publications

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

The Determinants of Chinese Foreign Direct Investment Flows in Mexican States, 2004–2014

Rural transformation: Cherry growing on the Guanzhong Plain, China and the Adelaide Hills, South Australia

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