The Effects of Vertical and Horizontal FDI Projects on a Host Country's Economy: Trade and Local-linkages

2003 ◽  
Vol 7 (2) ◽  
pp. 1
Author(s):  
Yung-Chul Kwon
Keyword(s):  
Horizontal Fdi

scholarly journals ANALISIS FOREIGN DIRECT INVESTMENT (FDI) INDONESIA DI NIGERIA PERIODE 2014—2017: STUDI KASUS PT. INDOFOOD SUKSES MAKMUR*

2019 ◽  
Vol 2 (1) ◽  
pp. 115
Author(s):  
Fitri , Chaerunisa
Keyword(s):  
Foreign Direct Investment ◽  
Life Cycle ◽  
Data Analysis ◽  
Direct Investment ◽  
Product Life Cycle ◽  
Qualitative Method ◽  
Product Life ◽  
International Trading ◽  
Horizontal Fdi ◽  
A Company

Liberalism in international trading opens the opportunity for any country to sell their products to the whole world. One of the activities that cannot be separated from international trading is Foreign Direct Investment (FDI). Nigeria is one of many countries which really welcome the concept of FDI. There are Indonesian corporations that have been investing in Nigeria, one of them is PT. Indofood Sukses Makmur. With the Toleram Group from Singapore, the company has built a new corporation together, called De United Foods Industries Ltd (DUFIL). FDI concept and Product Life Cycle (PLC) theory are used in this research, along with the qualitative method and descriptive technique of data analysis. The result shows that PT. Indofood Sukses Makmur (De United Foods Industries Ltd) is a company with horizontal FDI model. The company classified in greenfield FDI category, which developed with merger. According to PLC theory, instant noodle from PT. Indofood Sukses Makmur which has been produced by De United Foods Industries Ltd in Nigeria is currently in the mature step. 

Determinants of Foreign Direct Investment in Indonesia

2022 ◽  
pp. 097491012110678
Author(s):  
Barli Suryanta ◽  
Arianto A. Patunru
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Physical Capital ◽  
Unskilled Labor ◽  
Macroeconomic Factors ◽  
Factor Endowments ◽  
Open Policy ◽  
Vertical Fdi ◽  
Horizontal Fdi

We examine what determines the flow of foreign direct investment (FDI) in Indonesia, focusing on the role of institutional measures. A knowledge-and-physical-capital (KPC) model is applied to a panel dataset that covers 42 of Indonesia’s FDI partners from 2004 to 2012. Evidence shows that both horizontal and vertical FDIs coexist in the bilateral aggregate data of Indonesia’s FDI flows, but horizontal FDI appears to be dominant. This can be explained by the market size (proxied by the total GDP of both countries and similarity in incomes per capita) and the relative factor endowments (proxied by skilled labor and physical capital). The vertical FDI, on the other hand, could be only explained by the significant effect of unskilled labor. Institutional factors, particularly corruption, are apparently important in affecting Indonesia’s bilateral FDI flows. The results also show that a higher FDI level in Indonesia positively correlates with macroeconomic factors, open policy factors, and utility infrastructure factors.

The internationalization process of agrifood firms: a proposed conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexandre Borges Santos ◽  
Mário Otávio Batalha ◽  
Bruno Larue
Keyword(s):  
Conceptual Framework ◽  
Design Methodology ◽  
Meat Processing ◽  
Public And Private ◽  
Content Type ◽  
Safety Issues ◽  
Uppsala Model ◽  
Top Managers ◽  
Horizontal Fdi ◽  
Pattern Distribution

PurposeThis research seeks to develop a better understanding of internationalization patterns of agrifood firms and explains why different paths are adopted. Further, a conceptual framework to support public and private decision-making is proposed.Design/methodology/approachAn exploratory qualitative research framework was developed featuring case studies about three highly internationalized Brazilian meat processing firms. Top managers were interviewed, and documents were collected to support the intraand crosscase analyses.FindingsResults suggest that meat processing firms tend to adopt a dual internationalization pattern. Distribution-oriented foreign direct investment (FDI) is normally established gradually, whilst horizontal FDI – the establishment of foreign production facility – tends to be conducted through a fast-paced expansion mode. Interestingly, it was found that food safety issues play a central role in internationalization decisions.Originality/valueAn extension to the Uppsala model was provided by considering agrifood characteristics in the analysis. The results have broad appeal to managers and policymakers. Agribusiness managers could use the theoretical and empirical evidence to support their internationalization decisions. Policymakers can also use this research to gain a better understanding of how agrifood firms expand internationally to either attract or foster FDI.

THE IMPACT OF THE BELT AND ROAD INITIATIVE ON FIRMS’ EMPLOYMENT STRUCTURE AND WAGE — EVIDENCE FROM CHINA’S PUBLIC LISTED FIRMS

2020 ◽  
pp. 1-18
Author(s):  
BO CHEN ◽  
YUE CHEN
Keyword(s):  
Natural Experiment ◽  
Belt And Road Initiative ◽  
Total Employment ◽  
Listed Firms ◽  
Wage Payment ◽  
The World ◽  
Belt And Road ◽  
Horizontal Fdi ◽  
The Impact ◽  
The Belt And Road

In this paper, we use the Belt and Road Initiative (B&R) as a semi-natural experiment and apply a difference-in-difference analysis together with the propensity score matching approach to estimate the impact of the B&R on China’s A-Share listed firms with outbound FDI to the B&R countries during 2011–2017. We find that China’s firms investing in B&R countries, compared to those investing elsewhere in the world, tend to reduce their total employment, increase the share of skilled labor, and increase wages. Various tests show that the key results of B&R impacts remain robust. We also find that the adjustment after investing in B&R countries is mainly found in non-SOEs, the firms in key provinces that enjoy pilot B&R policies. Both vertical and horizontal FDI firms are found to significantly adjust their employment, skill structure, and wage payment, the former is more responsive.

scholarly journals Spillover Effect of FDI on Food Exports: Based on Firm-Level Analysis in China

2021 ◽  
Vol 13 (9) ◽  
pp. 4818
Author(s):  
Yue Jin ◽  
Chen Chen ◽  
Zhanyi Shi
Keyword(s):  
Firm Heterogeneity ◽  
Generalized Method Of Moments ◽  
Spillover Effect ◽  
Firm Level ◽  
The Sustainable Development ◽  
Export Spillovers ◽  
Horizontal Fdi ◽  
The Impact ◽  
Level Analysis ◽  
Domestic Food

This paper examines the spillover effect of foreign direct investment (FDI) on Chinese domestic food exports under firm heterogeneity. By using a rich firm-level panel data of China’s food firms, the empirical analyses rely on the first-order difference generalized method of moments (GMM) for industry-level analysis, and Heckman’s two-stage method for firm-level analysis. The results show that the horizontal FDI led to a positive spillover effect on domestic food industry exports, varying across food subindustries. The paper also finds that a large part of the promotion effect is driven through extensive margin (the probability to export) instead of intensive margin (the quantities of exports) in firm-level analysis. The heterogeneous export spillovers across food firms are further considered to depend on their nature characteristics, like productivity, size, and ownership. Moreover, the heterogeneities of FDI origins and business purpose are confirmed to influence export spillovers. The estimation results are quite robust for different types of regression specifications and substitutions of variable measurement. These findings provide suggestions for decision-makers to carefully assess the impact of FDI and make policy for the sustainable development of domestic food exports.

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