The IMPACT OF FOREIGN DIRECT INVESTMENTS (fdi) FROM MARKET ECONOMIES TO CENTRALLY PLANNED COUNTRIES
Submission Deadline: March 31, 2015
Pervez N. Ghauri, King’s College, UK
Byung Il Park, Hankuk University of Foreign Studies, South Korea
Purpose and Research topics:
Despite the recent economic slump and subsequent reductions and fluctuations of investment activities undertaken by multinational enterprises (MNEs) in host markets, the overall volume of foreign direct investment (FDI) has significantly grown over the last three decades. The major proportion of the FDI flows from market economies to centrally planned countries with the latter currently receiving huge amounts of inward FDI from the West. A representative example of this flow is China. China is often referred to as the factory of the world and/or the black hole of inward FDI. According to UNCTAD (2001, 2011), the recorded figure for 2010 revealed a more than doubling in the increase of China’s inward FDI (i.e., US$105.7 billion) since the year 2000 (US$40.7 billion). The same information also reveals that inward FDI in Vietnam dramatically increased from an annual average of US$651 million between 1989 and 1994 to US$ 2.1 billion in 2000 and US$8.2 billion in 2010.
A more direct example that clearly demonstrates the interaction between market and centrally planned economies is the Korean case. Based on mutual agreements between South (market) and North (centrally planned) Korean governments, South Korea established an industrial complex through FDI in Gaesung, North Korea. A number of South Korean MNEs participated in the project in order to exploit their capital and technology in combination with North Korea’s cheap labor force. As of March 2012, South Korean MNEs invested in a wide range of industrial sectors, such as textile, chemical, machinery, metal engineering, electricity & gas, electronics, food products, paper & wood, ceramics and so on. Since its establishment in 2008, the stock of production exceeded US$1 billion in September 2010 and approximately 50,000 North Koreans were employed as of January 2012 (EncyKorea, 2013). As the first industrial complex inaugurated jointly by South and North Korea, it has been a mutually beneficial contribution to political reconciliation, economic development, economical collaboration and cultural exchange.
However, we do not know enough that what impact this cooperation between market and centrally planned economies has had on the political, economic development, social and cultural areas. In this regard, the aim of this special issue is to bring together theoretical and empirical advancements examining the impact of FDI from disparate economies. We seek both theoretical and empirical papers that may address, but are not limited to, the following list of potential research questions:
The deadline for submissions is March 31, 2015. Thunderbird International Business Review, including style guidelines, please visit the Thunderbird International Business Review website at: http://tibr.thunderbird.edu/submission.
All submissions will be subject to the regular double-blind peer review process at the Thunderbird International Business Review. The guest editors are seeking reviewers for this issue and are soliciting nominations and volunteers to participate as reviewers. Please contact the guest editors to volunteer or nominate a reviewer.
To obtain additional information, please contact the guest editors:
Pervez N. Ghauri, King’s College London, UK ([log in to unmask])
EncyKorea (2013), Industrial complex established in Gaesung. Available http://terms.naver.com/entry.nhn?docId=1821118&cid=1599&categoryId=1599
UNCTAD (2001). World investment report: Promoting linkages. Geneva: United Nations.
UNCTAD (2011). World investment report: Non-equity modes of international production and development. Geneva: United Nations.
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Full Professor (Ph.D in International Business)
Hankuk University of Foreign Studies
College of Business Administration
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