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Recent trends in foreign direct investment

  • Foreign Direct Investment
  • Published:
Intereconomics

Abstract

Global investment strategies have become a central issue in international business and in international economics. The worldwide stock of foreign direct investment (FDI) can be estimated at over US $ 1500 billion in 1990—three times the value of the 1980 stock. The following article discusses the driving forces behind this trend and identifies some recent changes in the pattern of FDI.

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References

  1. Cf. Anne de Julius: Global companies and public policy. The growing challenge of foreign direct investment, Chatham House Papers, London 1990.

  2. Cf. UNCTC World Investment Report 1992, New York.

  3. Cf. UNCTC World Investment Report 1992, New York: Rolf Jungnickel: Weltwirtschaft und internationale Unternehmung, in: Handwörterbuch Export und Internationale Unternehmung, Stuttgart 1989.

  4. Cf. ILO: Employment and Multinationals in the 1990s, Geneva (forthcoming 1993).

  5. Cf. Anne de Julius, op. cit.; Global companies and public policy. The growing challenge of foreign direct investment, Chatham House Papers, London 1990; Philip Turner: Capital Flows in the 1980s: A Survey of Major Trends, BIS, Basel 1991.

  6. For details see Axel Borrmann, Rolf Jungnickel: Die Position ausländischer Investoren im asiatisch-pazifischen Integrationsprozeß, HWWA-Report, No. 102, Hamburg 1992; Rolf Jungnickel: Foreign Direct Investment: Recent Trends in a Changing World, HWWA-Report, No. 115, Hamburg 1993.

  7. Jetro: Japan New World's largest Investor, in: Tradescope, Jan. 1991, pp. 5–8.

  8. R. Komiya, R. Wakagusi: Japan's Foreign Direct Investment, in: The Annals of the American Academy, No. 513, Jan. 1991.

  9. SCB (Survey of Current Business), June 1991.

  10. E. M. Graham, P. R. Krugman: Foreign Direct Investment in the United States, Washington, D. C., 1989.

  11. A. M. Rugman, A. Verbeke: Corporate strategy after the free trade agreement and Europe 1992, in: J. Longair (ed.): Regional Integration in the World Economy: Europe and North America, Ottawa 1990.

  12. UNCTC: World Investment Report 1991, New York, John Cantwell: The Effects of Integration on the Structure of Multinational Corporation Activity in the EC, in: Klein, Welfens (eds.): Multinationals in the New Europe and Global Trade, Heidelberg (1992), pp. 193–233.

  13. Rolf Jungnickel: Unternehmensstrategien im Binnenmarkt, in: O. G. Mayer et al. (eds.): Der Europäische Binnenmarkt, Hamburg 1989.

  14. Susanne Erbe et al.: Drittlandsunternehmen im europäischen Binnenmarkt, Hamburg 1991.

  15. The motivation of Japanese FDI in the EC is discussed in more detail in Phedon Nicolaides, Stephen Thomsen: Can protectionism explain direct investment?, mimeo, Feb. 1991; Stephen Thomsen, Phedon Nicolaides: The evolution of Japanese direct investment in Europe: Death of a transistor salesman, Hemosteed 1991; Susanne Erbe et al., op. cit. Drittlandsunternehmen im europäischen Binnenmarkt, Hamburg 1991.

  16. UNIDO: Foreign Direct Investment in Central and Eastern European Countries, Vienna, 16 June 1992.

  17. OECD: Foreign Direct Investment Flows: Recent Development and Perspectives, in: Financial Market Trends, June 1992; Jan Stankovsky: Direktinvestitionen Österreichs in den Oststaaten, in: WIFO Monatsberichte No. 8, 1992, pp. 415–420.

  18. Jan Stankovsky, op. cit. Direktivestitionen Österreichs in den Oststaaten, in: WIFO Monatsberichte No. 8, 1992, pp. 415–420.

  19. Klaus Bolz (ed.): Ordnungspolitische Standortbedingungen für Direktinvestitionen in Mittel- und Osteuropa—Länderstudien CSFR, Polen, Rumänien, Ungarn, UdSSR-, Hamburg 1990; John H. Dunning: The Prospects for Foreign Direct Investment in Eastern Europe, University of Reading, Discussion Papers in International Investment and Business Studies, No. 155, 1991.

  20. Estimates by the Austrian Ministry of Economics. The host countries' statistics show a somewhat lower share (Stankovsky, op. cit. Direktinvestitionen Österreichs in den Oststaaten, in: WIFO Monatsberichte No. 8, 1992, pp. 415–420). Included in the Austrian FDI is an unknown share of indirect FDI by non-Austrian MNEs via their Austrian subsidiaries which often enjoy an advantage in dealing with eastern countries. The most recent example is the German tyre company Continental.

  21. Thomas L. Brewer: Foreign Direct Investment in Developing Countries, World Bank, WPS 712, 1991; UNIDO: Foreign Direct Investment Flows to Developing Countries: Recent Trends, Major Determinants and Policy Implications, Vienna 10.7.1990.

  22. BIS: 62nd Annual Report, Basel 1992.

  23. UNIDO: Foreign Direct Investment Flows to Developing Countries: Recent Trends, Major Determinants and Policy Implications, Vienna 10. 7. 1990.

  24. Ibid. UNIDO: Foreign Direct Investment Flows to Developing Countries: Recent Trends, Major Determinants and Policy Implications, Vienna 10. 7. 1990.

  25. Pekings Wirtschaftsstrategen registrieren einen starken Zufluß an Auslandskapital, in: Handelsblatt, 1. 12. 1992.

  26. BIS: 62nd Annual Report, Basel 1992, p. 93.

  27. Inter-American Development Bank: Economic and Social Progress in Latin America, 1992 Report, Washington, D. C.

  28. UNIDO: Foreign Direct Investment Flows to Developing Countries: Recent Trends, Major Determinants and Policy Implications, Vienna, 10. 7. 1990; UNTC: Transnational Corporations in World Development, New York 1988; Thomas L. Brewer: Foreign Direct Investment in Developing Countries, World Bank, WPS 712.

  29. UNCTC: World Investment Report 1991, New York.

  30. Rolf Langhammer: Competition among Developing Countries for Foreign Investment in the Eighties—Whom did OECD Investors Prefer?, in: Weltwirtschaftliches Archiv, No. 2, 1991.

  31. UNCTC: World Investment Report 1991, New York; John Cantwell: The relationship between international trade and international production, discussion paper No. 161, University of Reading, 1992.

  32. Axel Borrmann, Rolf Jungnickel, op. cit. Die Position ausländischer Investoren im asiatisch-pazifischen Integrationsproze 3, HWWA-Report, No. 102, Hamburg 1992; Rolf Jungnickel: Foreign Direct Investment: Recent Trends in a Changing World, HWWA-Report, No. 115, Hamburg 1993.

  33. Axel Borrmann et al.: Regionalismustendenzen im Welthandel (forthcoming).

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Authors and Affiliations

  1. Hamburg Institute for Economic Research (HWWA), Hamburg, Germany

    Rolf Jungnickel

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  1. Rolf Jungnickel
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This article is based on a study prepared for the ILO (HWWA-Report No. 115, Hamburg 1993).

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Jungnickel, R. Recent trends in foreign direct investment. Intereconomics 28, 118–125 (1993). https://doi.org/10.1007/BF02928115

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