 |
 |
> > View this email in your browser > <http://us6.campaign-archive1.com/?u=ab15cc1d53&id=e2b122a8f5&e=df645fa32e> > > 哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看：http://ccsi.columbia.edu/public > ations/columbia-fdi-perspectives. > *Columbia FDI Perspectives* > Perspectives on topical foreign direct investment issues > No. 184 October 10, 2016 > Editor-in-Chief: Karl P. Sauvant ([log in to unmask]) > Managing Editor: Daniel Allman ([log in to unmask]) > *Less compelling than it seems: * > *rethinking the relationship between aggregate FDI inflows and national > competitiveness* > by > Lukas Linsi* * <#m_2978445610922470126_m_4438107073272831973__edn1>* > > Following the release of the OECD’s updated foreign direct investment > (FDI) statistics, the United Kingdom (UK) government proudly announced in > June 2015 that “[t]he UK has maintained its position as the number one > destination for FDI in Europe,” and then Prime Minister David Cameron > explained that “[t]he scale of foreign investment is a huge success story > which shows that Britain is the place to do business and is further > evidence that our long-term economic plan is working”.[1] > <#m_2978445610922470126_m_4438107073272831973__edn2> Such interpretations > of aggregate FDI data as an indicator of countries’ general economic > performance are widespread in today’s economic policy debates. They derive > in part from a widely held and largely unquestioned assumption that FDI > inflows are intimately connected to a country’s level of “competitiveness”. > > Although there are other uses of the term, the most common understanding > of the notion of national competitiveness as the quality of a country’s > business environment has been shaped by the extraordinarily influential > work of Michael Porter[2] > <#m_2978445610922470126_m_4438107073272831973__edn3> who defined it as > being essentially determined by the level of productivity of a national > economy relative to its peers. Following this view, the connection between > FDI inflows and competitiveness made in policy discourses thus appears to > assume that FDI inflows are either a *cause* or an *outcome*—or both—of a > highly productive business environment. This *Perspective* aims to show > that this connection is in fact not as straightforward as it might seem. > > Conceptually, it is important to distinguish between three distinct types > of FDI flows: greenfield investments, mergers and acquisitions (M&As) and > special purpose entity (SPE) FDI. I argue that only a subset of these > different types of FDI flows are related to national competitiveness in a > meaningful way—and even in the cases where they are related, the > relationship is always conditional. > > The claim that FDI inflows are a cause of economic competitiveness is > based on the intuitively compelling idea that investment by internationally > competitive multinational enterprises (MNEs) improves productivity in host > economies because it brings technology, managerial skills and access to > international markets—factors that are particularly important for > developing economies—as well as research-and-development (R&D) activities > and high-value-adding employment that are particularly desired by > policymakers in advanced economies. This relationship is unlikely to hold > for SPE FDI, which normally does not imply any real industrial activity in > the host economy. It can be true for either greenfield or M&A FDI, but > empirical studies have repeatedly highlighted that the positive spillover > dynamics frequently ascribed to inward FDI are in fact highly > context-specific, depending both on the nature of the FDI projects and the > absorptive capacities of the host economies, and should thus not be taken > for granted.[3] <#m_2978445610922470126_m_4438107073272831973__edn4> > > The claim that FDI inflows are an outcome of economic competitiveness is > based on the idea that global capital is “footloose” and freely moves to > places that offer the most attractive business environment. As a result, it > is frequently implied that the whereabouts of FDI inflows are an indicator > of the competitiveness of national economies. Such notions also have to be > qualified. While they might be correct for certain subsets of efficiency- > and strategic assets-seeking greenfield and M&A FDI, these assumptions are > unlikely to hold for a large number of FDI decisions. As is well known, an > important share of greenfield and M&A FDI flows primarily seeks access to > natural resources or consumer markets rather than the most productive > economic environments. Moreover, M&A FDI may in some cases be attracted by > the underperformance of local firms rather than their strength. In such > scenarios, inward FDI may be a negative rather than a positive sign of > competitiveness.[4] <#m_2978445610922470126_m_4438107073272831973__edn5> > Lastly, SPE FDI flows are determined primarily by international tax > considerations and are thus not related to industrial productivity in any > meaningful way. > > The policy implications of this are twofold. Firstly, FDI as such is not a > simple proxy for a country’s competitiveness, business environment or > overall economic performance. Secondly, the quality of inward FDI is more > important than its quantity. FDI quality cannot be assessed simply by > looking at aggregate FDI statistics. To measure FDI quality, it is > paramount to collect and analyze data at a more disaggregated level, > including information on MNEs’ operational details, such as the precise > industrial activity, R&D expenditures, etc. Although the collection of > better FDI data may be less rewarding politically than spending money to > attract FDI, it is essential to assess the real connections between inward > FDI and national competitiveness, which for now remain unclear. > > ------------------------------ > * <#m_2978445610922470126_m_4438107073272831973__ednref1> Lukas Linsi ( > [log in to unmask]) is a PhD candidate at the London School of > Economics. The author is grateful to Ashish Lall and Louis T. Wells for > their comments on an earlier version of this *Perspective*, and to > Richard Kozul-Wright, Peter Nunnenkamp and Terutomo Ozawa for their helpful > peer reviews. *The views expressed by the author of this Perspective do > not necessarily reflect the opinions of Columbia University or its partners > and supporters. Columbia FDI Perspectives (ISSN 2158-3579) is a > peer-reviewed series.* > [1] <#m_2978445610922470126_m_4438107073272831973__ednref2> UK Trade and > Investment, “UK wins a record number of investment projects and maintains > position as top investment destination in Europe,” Press release (Jun. 17, > 2015), available at www.gov.uk/government/news/uk- > wins-a-record-number-of-investment-projects-and-maintains- > position-as-top-investment-destination-in-europe. > [2] <#m_2978445610922470126_m_4438107073272831973__ednref3> Michael E. > Porter, *The Competitive Advantage of Nations* (London: MacMillan, 1998). > [3] <#m_2978445610922470126_m_4438107073272831973__ednref4> For an > overview of this literature, see Klaus E. Meyer and Evis Sinani, “When and > where does foreign direct investment generate positive spillovers? A > meta-analysis,” *Journal of International Business Studies*, vol. 40 > (2009), pp. 1075-1094. > [4] <#m_2978445610922470126_m_4438107073272831973__ednref5> Even if it is > conceivable that such FDI flows subsequently improve the productivity of > the target companies. > *The material in this Perspective may be reprinted if accompanied by the > following acknowledgment: “Lukas Linsi**, **‘Less compelling than it > seems: rethinking the relationship between* *aggregate FDI inflows and > national competitiveness**,’ **Columbia FDI Perspectives, No. 184, > October 10, 2016. Reprinted with permission from the Columbia Center on > Sustainable Investment (www.ccsi.columbia.edu > <http://www.ccsi.columbia.edu>).” A copy should kindly be sent to the > Columbia Center on Sustainable Investment at [log in to unmask]* > > For further information, including information regarding submission to the > *Perspectives*, please contact: Columbia Center on Sustainable > Investment, Daniel Allman, [log in to unmask] > > - No. 183, Karl P. Sauvant and Güneş Ünüvar, “Can host countries have > legitimate expectations?,” September 26, 2016. > - No. 182, Tania Voon and Andrew D. Mitchell, “Philip Morris vs. > tobacco control: two wins for public health, but uncertainty remains,” > September 12, 2016. > - No. 181, John Gaffney, “The EU proposal for an Investment Court > System: what lessons can be learned from the Arab Investment Court?,” > August 29, 2016. > > *All previous FDI Perspectives are available at **http://ccsi.columbia.edu/ > <http://ccsi.columbia.edu/>publications/columbia-fdi-perspectives/**. * > > *Other relevant CCSI news and announcements* > > - *On October 11, 2016*, CCSI and the Tamer Center for Social > Enterprise at Columbia Business School will co-host "Who Actually Controls > Public Companies and in Whose Interest Are They Run?" Drawing from his > decades’ long experience in stewardship and sustainable investment, *Colin > Melvin*, Global Head of Stewardship at Hermes Investment Management > and Chair of Hermes Equity Ownership Services, will examine who actually > controls companies and in whose interest they are run. Colin will describe > an emerging obligation and opportunity for pension plans, endowments and > other institutional investors with regard to business and the public good, > which he will characterize as a shift in focus from short term transactions > to longer term relationships. *For more information and to register, > click here > <http://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=36167f5d23&e=df645fa32e>.* > - *On October 17, 2016*, CCSI's* Fall 2016 International Investment > Law and Policy Speaker Series *continues with *Gabrielle > Kaufmann-Kohler* (Professor of Law, University of Geneva; Partner, > Lévy Kaufmann-Kohler). Remaining speakers in the series are Gabriel > Bottini, Allan Rosas and Mark Wu. The series, co-sponsored by Crowell & > Moring LLP, Baker & McKenzie LLP and Investment Claims, will be moderated > by Ian Laird, Grant Hanessian and Kabir Duggal. All talks will take place > at Columbia Law School, Jerome Greene Hall. Select presentations will be > webcast; *please see our website > <http://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=8e1ed68260&e=df645fa32e> for > the schedule and more details*. No registration is required. > - *From October 31 - November 3, 2016*, join us for "EU Judges Visit > Columbia Law School." CCSI and the European Legal Studies Center will host > two distinguished Judges– *Allan Rosas*, Court of Justice of the EU, > and *Savvas Papasavvas*, General Court of the EU– for a week of > discussions on matters of investment, trade, legal challenges in the EU, > and other timely developments in EU and International Law. *For > details on the lunchtime and evening talks throughout the week, please > click here > <http://columbia.us6.list-manage1.com/track/click?u=ab15cc1d53&id=7593eb32f0&e=df645fa32e>.* > > Karl P. Sauvant, Ph.D. > Resident Senior Fellow > Columbia Center on Sustainable Investment > Columbia Law School - Earth Institute > Ph: (212) 854-0689 > Fax: (212) 854-7946 > *Copyright © 2016 Columbia Center on Sustainable Investment (CCSI), All > rights reserved.* > [log in to unmask] > > *Our mailing address is:* > Columbia Center on Sustainable Investment (CCSI) > Columbia Law School - Earth Institute, Columbia University > 435 West 116th Street > New York, NY 10027 > > Add us to your address book > <http://columbia.us6.list-manage1.com/vcard?u=ab15cc1d53&id=a61bf1d34a> > > > unsubscribe from this list > <http://columbia.us6.list-manage.com/unsubscribe?u=ab15cc1d53&id=a61bf1d34a&e=df645fa32e&c=e2b122a8f5> > update subscription preferences > <http://columbia.us6.list-manage2.com/profile?u=ab15cc1d53&id=a61bf1d34a&e=df645fa32e> > > > [image: Email Marketing Powered by MailChimp] > <http://www.mailchimp.com/monkey-rewards/?utm_source=freemium_newsletter&utm_medium=email&utm_campaign=monkey_rewards&aid=ab15cc1d53&afl=1> > -- Best Regards, Yang Qiao ------------------------------ Spam <https://antispam.law.columbia.edu/canit/b.php?i=01RRQqqGK&m=1186256d1d92&t=20161010&c=s> Not spam <https://antispam.law.columbia.edu/canit/b.php?i=01RRQqqGK&m=1186256d1d92&t=20161010&c=n> Forget previous vote <https://antispam.law.columbia.edu/canit/b.php?i=01RRQqqGK&m=1186256d1d92&t=20161010&c=f> ____ AIB-L is brought to you by the Academy of International Business. For information: http://aib.msu.edu/community/aib-l.asp To post message: [log in to unmask] For assistance: [log in to unmask] AIB-L is a moderated list.