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This study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18 countries covering the period of 1975–2017.

The study employed Levin et al. (2002) test (LLC) and Im et al. (2003) panel unit root test. Furthermore, Kao’s cointegration test was applied to examine the long-run relationship between the variables. Both the Dynamic OLS and Fully modified OLS were used in estimating the short-run relationship.

The results of the DOLS and FMOLS indicate that both inward and outward FDI influence the manufacturing sector growth positively. This shows that much of the manufacturing sector growth in the MENA region is driven by both inward and outward FDI. Our findings made a strong new proposition that aside from the negative influence proposed by Stevens and Lipsey (1992), outward FDI could also have a positive influence on the manufacturing sector of a country through effective utilization of domestic raw materials that are produced locally for production of goods in a foreign country.

MENA countries should concentrate more on making policies that will encourage the effective utilization of domestic resources for outward foreign direct investment in other countries of the world as it has the capacity to boost the manufacturing sector growth. Also, policies that will attract more inflows of FDI in the region should be encouraged. Both inward and outward FDI should be considered as an integral part of MENA economic policy in order to spur the manufacturing sector growth.

Previous empirical studies on the relationship between FDI and manufacturing sector growth have focused much on the influence of inward FDI. Thus, very little attention has been paid to the contribution that the outward FDI makes to the growth of the manufacturing sector of the host country. Our empirical study focused on the influence of both inward and outward FDI on the manufacturing sector growth with specific emphasis on the MENA region that remains the center of attraction of inward FDI and a source of inward FDI to most nonoil producing developing and developed countries given the oil-rich nature of the region.

Since China initiated its “go global” policy that promotes its overseas investment, China’s Outward Foreign Direct Investment (OFDI) has increased almost twenty times during the last 10 years, reaching $55.9 billion in 2008. The issue of internationalization of Chinese OFDI has attracted increasing attention of researchers from a business perspective. This article systematically reviews the previous studies on overseas investments by Chinese MNEs and discusses the characteristics of Chinese internationalization behavior at both firm level and country level. The internationalization of Chinese companies cannot be understood as a simple game of “catch up” with established MNEs, and more firm‐level empirical studies should be carried out on how these characteristics influence firms’ strategic decisions.

To analyze the industrial development of South, East, and Southeast Asian nations in terms of investment and trade and how the institutional environment – in particular, the government policy with regard to outward foreign direct investment (OFDI) – has played a role in this respect.

The chapter puts OFDI policy and industrial upgrading in newly industrialized, emerging, and developing Asian economies (NIEDAEs) in historical perspective to attempt to draw inference from their past behavior.

The chapter provides information about each NIEDAE’s experience with OFDI policy through a comparative analysis of OFDI promotional policy.

A useful source of information about each NIEDAE’s OFDI policy approach, the chapter attempts to draw recommendations for OFDI policy.

This chapter fulfills an information need and offers practical help to government policy makers.

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large market size, low GDP growth, high volumes of imports from China or India, and low corporate tax rates. We also find important differences between China and India. While Chinese FDI is drawn to countries with open economic regimes, depreciated host currencies, better institutional environments, and English speaking status, none of these factors are important for Indian FDI. Chinese FDI is also deterred by geographic distance and OCED membership. However, neither of these has any impact on Indian FDI.

This paper aims to explore the spatio-temporal patterns of Chinese foreign direct investment (FDI) since the inception of the Belt and Road Initiative (BRI) in 2013 as an extended version of geographically weighted regression.

The panel data are used to examine spatial and temporal dynamics of the magnitude and the direction of China's outward FDI stock and its flow from 2011 to 2015 at a country level. Using the geographically and temporally weighted regression (GTWR), spatio-temporal distribution of FDI is explained through Logistic Performance Index, the size of gross domestic product (GDP), Shipping Linear Connectivity Index and Container Port Throughput.

A comparative analysis between participating and non-participating countries in the BRI shows that the size of GDP and Container Port Throughput of the participating countries have a positive effect on the increases of China's outward FDI Stock to Asia especially after 2013, while non-participating countries, such as North America, Western Europe and Western Africa, have no significant effect on it before and after the implementation of the BRI.

The findings, however, will not necessarily provide insight into the needs of China's outward FDI in certain countries to develop their economy. The findings provide the evidence to inform policy making to help identify the winners and losers of the investment, scale and direction of investment and the key drivers that shape the distributive investment patterns globally.

The study provides the empirical evidence to inform investment policy and strategic realignment by quantifying scale, direction and drivers that shape the spatio-temporal shifts of China's FDI.

The analysis also guides the Chinese government improve bilateral trade, build infrastructure and business partnerships with preferential countries participating in the BRI.

There is an urgent need to adopt a new perspective to unfold the spatial temporal complexity of FDI that incorporates space and time dependencies, and the drivers of the situated context to model their effects on FDI. The model is based on GTWR and an extended geographically weighted regression (GWR) allowing the simultaneous analysis of spatial and temporal decencies of exploratory variables.

The paper investigates the relationship between China’s net direct foreign investment position and economic development and the investment development path (IDP) theory introduced by Dunning (1981). Using annual data for the period 1979 to 2005 and a fourth order single variable polynomial function we demonstrate that form of the IDP for China and conclude that China entered stage 3 of the path postulated by the IDP theory. By analyzing key factors which have impacted FDI inflows and outflows we find that certain idiosyncratic characteristics of Chinese companies and institutional factors may limit the significant increase in the multinationalization of Chinese firms which would be required for the country to move along the IDP.

The concept of globalisation has received wide currency in the literature on international business strategy. Authors such as Levitt and Ohmae argue that, in the future, only global companies will succeed. This paper examines the theoretical concepts and their applicability to clothing products and then studies the global spread of the UK clothing industry's exports and overseas investments. It concludes that the applicability of the concept of globalisation to this sector may be limited by the nature of the product and that, in practice, the global spread of export and investment activity as exhibited by the UK clothing industry reveals some potentially disturbing features; notably an over concentration upon the EU. This is the second part of a paper which was published in the previous issue, JFMM Vol 2, No 2.

The investment development path of emerging markets’ MNEs is significantly different from the developed (TRIAD) world’s MNEs; BRIC MNEs seem to have taken a different trajectory on account of various political and economic reasons, ranging from the ‘forms of entry’ to ‘country-specific advantages’ (Tulder, R. V. (2010). Toward a renewed stages theory for BRIC multinational enterprises? A home country bargaining approach. In K. P. Sauvant, G. McAllister, & W. A. Maschek (Eds.), Foreign direct investments from emerging markets: The challenges ahead (pp. 61–74). New York, NY: Palgrave Macmillan). Yet, some believe that in the long run the internationalization strategy of the developed world MNEs and BRIC MNEs will converge. Internationalization strategies as measured by OFDI depend on various macroeconomic determinants such as income, interest rate, openness of the economy, etc. The chapter intend to highlight, the significant difference between these two groups of countries on account of diverse political reforms towards internalization of firms, yet see if these different countries might converge.

Regression analysis examines the significance of the role of home government by testing the effect of governance indicators; that is voice and accountability, on OFDI. It further, tests for convergence of internationalization strategies of the two historically divergent groups, also, it tests convergence amongst the BRIC nations. Along with forecasting, time series analysis is also employed to examine convergence using univariate sigma convergence techniques.

Impact of voice and accountability is significant but it hinders OFDI for BRIC nations, while it promotes OFDI for TRIAD & ALL. Moreover, the analysis found the existence of convergence, that is BRIC will catch up with TRIAD, but though convergence exists amongst BRIC if we take a long span of time (45 years), it is absent in short span of time (19 years), as lately BRIC have shown divergent tendency.

Small sample size in multivariate regression analysis. Also, the governance indicator, that is voice and accountability, is perception based, and missing gaps in data for governance indicator is filled using interpolation.

Empirically testing the convergence of BRIC nations with the developed world. A univariate time series analysis is undertaken to understand each country’s heterogeneous FDI outflows and to address the research gap in existing forecasting literature. In addition, the comparison specifically between the Emerging Market Economies, that is the BRIC nations and the developed world gives some useful insights. This chapter ascertains the impact of governance indicator on OFDI; empirical literature shows such analysis for IFDI & FDI, but OFDI is rarely been dealt with.

We question whether the Chinese state has played an effective role in promoting outward foreign direct investment via its “Go Global” policies. Using the literature in International Management as our framing, we observe three inter-related stylized realities. First, it is state-owned enterprises (SOEs) – not private enterprises – that tend to principally benefit from the favorable “Go Global” policies. Second, SOEs tend to pay much higher acquisition premiums in outward FDI as compared to non-SOEs. Third, SOEs tend to be less effective as compared to non-SOEs in gaining synergies and enhancing competitiveness as a result of these cross-border experiences. These results yield clear policy implications for the Chinese government: first, more effective public policy would involve enhanced targeting of private enterprises as the recipients of policies promoting outward FDI; second, the Chinese government should continue along the path toward privatization of SOEs. The continued bolstering of economic and social development in China is contingent upon efforts to reduce the state’s active role in outward FDI.

This paper aims to use the eclectic paradigm as a broad organizing framework to bring together two somewhat parallel international business (IB) literatures, one on the development effects of multinational enterprise activity and the other on the internationalization of emerging market multinationals (EMNEs). The author does so to better understand how outward foreign investment shapes economic development in firms’ home countries.

Considering that the characteristics of foreign investment by EMNEs likely differ from that of their developed economy counterparts and that such characteristics may have unique development consequences, the author revisits one of IB’s overarching theories to rethink how ownership, location and internalization advantages take shape and stimulate diverse development outcomes.

My narrative review and conceptual analysis indicate that the eclectic paradigm is a valuable framework that can be used to shed light on underexplored phenomena and thereby inform important policy debates. The analysis suggests that unique characteristics of EMNE investment simultaneously have positive and negative development consequences in their home countries.

The author sets out a research agenda that revolves around six propositions that separately relate one of these three distinct characteristics of EMNE investment to two development outcomes, namely, spillovers and direct effects on home-country employment. My propositions suggest that important policy dilemmas potentially apply, in that each of the three characteristics positively affects one of the aspects of development, but negatively the other.

My research agenda presents international business scholars with new opportunities to build on a history of policymaking impact, now geared toward resolving society’s grand challenge of underdevelopment.