China’s Inward Foreign Direct Investment Success: Southeast Asia in the Shadow of the Dragon

Peter J. Buckley, Jeremy Clegg, Adam Cross and Hui Tan
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Peter J. Buckley: University of Leeds (CIBUL)
Jeremy Clegg: Leeds University Business School
Adam Cross: Leeds University Business School
Hui Tan: University of London

Chapter 11 in Foreign Direct Investment, China and the World Economy, 2010, pp 239-269 from Palgrave Macmillan

Abstract: Abstract A key aspect of the success of globalisation is the emergence of the People’s Republic of China as a major player in the world economy. This paper explores not only the success of China as a location for foreign direct investment (FDI) but also examines some negative externalities of this success for neighbouring countries of Southeast Asia, in particular those of the Association of South East Asian Nations (ASEAN).1 Much has been written on the character of inward FDI to China (Child and Lu, 1996; Wei and Liu, 2001) and, particularly following its accession to the World Trade Organisation (WTO) in December 2001, the determinants of FDI and its effect on the domestic economy, in terms of, for example, growth (Buckley, Clegg, Wang and Cross, 2002) and productivity (Liu, Parker, Vaidya and Wei, 2001). Other work assesses the implications of China’s WTO accession for world merchandise trade flows (e.g., Lardy, 2002; Ianchovichina, Martin and Fukase, 2000; Ianchovichina and Martin, 2001). However, with the notable exception of a report by the ASEAN-China Expert Group on Economic Cooperation (ACEGEC, 2001), much less has been written on how multinational enterprises (MNEs) might adjust investment strategies in response to opportunities arising from China’s deepening integration into the global economic system post-WTO and what the consequences of this might be for developing countries like those of Southeast Asia as FDI recipients.

Keywords: Foreign Direct Investment; World Trade Organisation; Southeast Asian Country; Foreign Direct Investment Stock; World Trade Organisation Accession (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-24832-8_11

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DOI: 10.1057/9780230248328_11

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