2020
DOI: 10.1111/1758-5899.12788
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The Rise of Foreign Direct Investment Regulation in Investment‐recipient Countries

Abstract: This research paper seeks to explain why investment-recipient countries, like Australia and Canada, reject certain investments in strategic industries and shield some domestic business from foreign acquisitions. Existing studies suggest that the decision to restrict FDI is driven by national security concerns, which are often conceptualized as a catch-all concept. This paper develops a novel theoretical construct -'FDI acceptability threshold' (a maximum point of political tolerance for any given foreign inves… Show more

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Cited by 17 publications
(10 citation statements)
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References 18 publications
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“…The role of the Committee on Foreign Investment in the USA (CFIUS) in reviewing inward FDI has been expanded and supported by the 2018 Foreign Investment Risk Review Modernisation Act which has lowered ownership levels triggering CFIUS review and expanded the purview of strategic asset reviews. The same concerns have been expressed by other countries including India, Canada, and Australia which have also moved to tighten investment approvals, with an intensifying focus on strategic sectors and the conduct of state-owned enterprises (Uflmtseva, 2020).…”
Section: Threats To the Belt And Road Initiative: China In The Global Economymentioning
confidence: 87%
“…The role of the Committee on Foreign Investment in the USA (CFIUS) in reviewing inward FDI has been expanded and supported by the 2018 Foreign Investment Risk Review Modernisation Act which has lowered ownership levels triggering CFIUS review and expanded the purview of strategic asset reviews. The same concerns have been expressed by other countries including India, Canada, and Australia which have also moved to tighten investment approvals, with an intensifying focus on strategic sectors and the conduct of state-owned enterprises (Uflmtseva, 2020).…”
Section: Threats To the Belt And Road Initiative: China In The Global Economymentioning
confidence: 87%
“…Local firms that do not export would have difficulty remaining in business as re-investments will become more expensive ( Desai et al, 2004 ). The fifth is the weak investment regulation environment in some countries ( Ufimtseva, 2020 ). Whilst these could lead to delays in translating FDI on the balance of payments into investments, the weak investment regulation environment could have other effects.…”
Section: Discussion Of Estimationsmentioning
confidence: 99%
“…As a matter of fact, States seem no longer satisfied with mere restrictions on foreign firm establishment or the use of competition law to screen proposals by foreign firms intended to acquire local rivals. 45 It is also worth noting that several governments stressed the need to keep their economies open to FDI. Governments were obligated, at the very least, to broaden the spectrum of economic activity covered by FDI screening while avoiding the outright imposition of restrictions.…”
Section: The Rise Of Fdi Screening As Regulation Of Digital Fdimentioning
confidence: 99%