Use this URL to cite or link to this record in EThOS: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.550823
Title: Assessing the benefits of foreign direct investment from emerging economies : Chinese investment in Cambodia and Vietnam
Author: Kubny, Julia
Awarding Body: University of Leeds
Current Institution: University of Leeds
Date of Award: 2011
Availability of Full Text:
Access through EThOS:
Abstract:
This thesis assesses the impact of China's outward foreign direct investment on local workers and firms in- Cambodia and Vietnam and considers whether Chinese firms establish regional production networks through their outward investment. Previous studies have concluded that foreign direct investment from emerging economies may contribute more to host country development mainly due to a lower technology gap and greater psychic and institutional proximity. Empirical evidence that confirms this theory is scarce, however. Similarly, the extent to which emerging economies' outward investment induces new regional production networks is little understood. This thesis addresses these two research gaps on the basis of interviews with 60 Chinese investors in the manufacturing industries of Cambodia and Vietnam, complemented by interviews with domestically owned firms, stakeholders and experts, and secondary data. The analyses indicate that Chinese manufacturing investment has had few positive effects. On the other hand, no negative effects have been observed, either. Chinese firms have a positive impact on the domestic workforce, but little interaction with local firms, which reduces the potential gains from spillovers. Backward and forward linkages are stronger in Vietnam than in Cambodia, but local sourcing is in both host countries confined to simple types of input goods. As a consequence, benefits for local firms from training or other support are very limited. Chinese firms in Cambodia and Vietnam have also not yet been found to set up their own regional production networks. The limited benefits to host countries contrast with theoretical expectations, but are in line with findings on industrialised-country outward investment. This suggests that the effects of outward investment by emerging economies may not be so. different from those of outward investment from industrialised countries. Furthermore, the findings show that the impact of any investment, whether or not Chinese, is constrained by host-country conditions.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.550823  DOI: Not available
Share: