(EGM) Foreign Direct Investment in Southeast Asia - Unido

More documents

Recommendations

Info

Recent years have seen increasing competition between countries to attract and host finite FDI flows. But the challenge for policy-makers is not just about attracting a greater share of FDI inflows, but also harnessing it to optimal effect. International experience provides some lessons on optimal policy designs and instruments (and their implementation). However, the topic remains the subject of continuing and continual research and analyses, not least because FDI activity itself (both in manufacturing and services) is in a state of permanent evolution and change. For example, the steady rise of global value chains and global production networks, briefly depicted above, has become an increasing source of interest. For policy-makers, the key question is: how can a country best position itself to take advantage of this new phenomenon? While policy instruments that proved effective in attracting and harnessing FDI yesterday may prove less effective today (and tomorrow), new instruments may be part of the answer. It is in this context that a UNIDO expert group meeting (EGM) was conceptualised and conducted; using the experience of Southeast Asia as a lens through which to depict and debate the challenges currently confronting developing countries in successfully attracting and best harnessing FDI inflows. The Southeast Asian region spans a diverse range of countries, at very different stages of economic development and transition, and therefore serves as a useful object of study for most developing countries [Freeman and Bartels (2004)]. This report is intended to serve as a summary of the EGM’s presentations and discussions. 10
Theme 1 FDI and Multinational Enterprises in Southeast Asia: Globalisation’s Challenges Presentation summary Providing a robust platform on which the topic of FDI in Southeast Asia can be explored, Peter Buckley provided a ‘long view’ perspective of global and regional FDI activity. He introduced the notion of multinational enterprises (MNEs) as global networks, seeking to “circulate mobile inputs globally, to combine with locationally fixed factors”. The primary motives for FDI by MNEs can be categorised as seeking to gain: i) market access; ii) access to immobile inputs, such as raw materials like oil; and iii) access to immobile resources, such as competitive labour inputs and tax rates. The role of MNEs is to circulate mobile inputs across the globe, so as to combine them most effectively (and efficiently) with these immobile factors. This results in the formation, co-ordination and movement of various operations and functions within an MNE, distributed across countries. And can be likened to that of an ‘integrated global factory’. See Figure 1, below. DISTRIBUTED INTERNATIONAL & INTRA-REGIONAL BORDERS Design Engineering Branding M arketing BRAND OWNER Engineering Contractor THE INTEGRATED GLOBAL FACTORY DISTRIBUTED OPERATIONS & SPATIALLY CO- CO ORDINATED FUNCTIONS R&D Contractor Design Contractor Low-Tech Parts Supplier BPO 11 M ed-Tech Parts Supplier Low-tech Parts Supplier Hi-Tech Contract Assembler M ed-Tech Contract Assembly Hi-Tech Parts Supplier Outsourced Parts Supplier M ed-Tech Parts Supplier Final Assembly, Adaptation, Warehousing, Distribution & Logistics LOCAL MARKET CORE, NON- NON CORE FUNCTIONS DISTRIBUTED MANUFACTURING ADAPTATION IN INTEGRATED TEGRATED IN INTERNATIONAL TERN ATION AL SOURCING SOURCING , , TECHNOLOGY, TECHNOLOGY, PRODUCTION, PRODUCTION, MARKETING MARKETING & & SERVICING SERVICING NETWORK N ETWORK OPERATIONS OPERATIONS 3PL 3PL FTZs Figure 1: The integrated global factory. Adapted from Buckley (2003); Buckley and Ghauri (2004). In terms of product classification, and therefore global value (or supply) chains, each MNE may have several global factories, some of which may
Page 3: Foreign Direct Investment in Southe
Page 6 and 7: Abbreviations and Acronyms ADB Asia
Page 8 and 9: thinkers and writers on FDI and mat
Page 10 and 11: The realignment of structural facto
Page 14 and 15: overlap according to production pro
Page 16 and 17: enchmark rankings should be one aim
Page 18 and 19: Theme 2 FDI and National Experience
Page 20 and 21: ‘pipeline’ of harmonising legis
Page 22 and 23: major determinant of success. This
Page 24 and 25: and viii) general foreign investor
Page 26 and 27: Investment policy craft -- creating
Page 28 and 29: policies, as they would treat forei
Page 30 and 31: It appears that the advantages and
Page 32 and 33: seeking to attract FDI? Examining t
Page 34 and 35: attractiveness of the region to inv
Page 36 and 37: Theme 4 FDI and the China Dimension
Page 38 and 39: greater regional collaboration, the
Page 40 and 41: The increasing significance of outs
Page 42 and 43: aise their own finance like any oth
Page 44 and 45: Notwithstanding the dynamics of ris
Page 46 and 47: The logistics of the UNIDO ITPO Del
Page 48 and 49: no longer be an appropriate indicat
Page 50 and 51: FDI lens. Consequently, some IPAs h
Page 52 and 53: Select References Bartels F.L. and
Page 54 and 55: Annex 2: Participants at the EGM Co
Page 56 and 57: Appendix I: Thematic Programme of t
Page 58 and 59: 12.30-14.0 Lunch Plenary Discussion
Page 60 and 61: Appendix II: Opening Statement by t
Page 62 and 63:
Appendix III: Opening Statement by
Page 64 and 65:
and practitioners in other developi
Page 66 and 67:
The themes of the EGM have been car
Page 68 and 69:
Appendix V: EGM Working Paper EF Un
Page 70 and 71:
ABSTRACT This working paper discuss
Page 72 and 73:
In recent years, we have seen incre
Page 74 and 75:
usiness domestically (improving int
Page 76 and 77:
intra-industry trade, which account
Page 78 and 79:
The agglomeration of markets and di
Page 80 and 81:
These patterns are characterised by
Page 82 and 83:
etween locations and maximises the
Page 84 and 85:
ecome insiders and thus avoid being
Page 86 and 87:
(iv) Those that relate to the “pu
Page 88 and 89:
their indicators 50 of industrial p
Page 90 and 91:
evolve more rapidly to account for
Page 92 and 93:
changing morphology of MNEs with a
Page 94 and 95:
92 Appendix I - Doing Business in A
Page 96 and 97:
94 Appendix II - ASEAN Investment C
Page 98 and 99:
96 Appendix III - Ranking of Econom
Page 100 and 101:
Buckley P. J., Carter M. J., 2004,
Page 102 and 103:
McKinsey & Company, 2003, New Horiz
show all

(EGM) Foreign Direct Investment in Southeast Asia - Unido

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?