The role of FDI in promoting cross border linkages in the Greater Mekong Subregion
-
Upload
smriti-sharma -
Category
Economy & Finance
-
view
97 -
download
1
Transcript of The role of FDI in promoting cross border linkages in the Greater Mekong Subregion
GLOBAL VALUE CHAINThe value chain describes the full range of activities that firms and workers perform to bring a product from its conception to end use
and beyond.
R&D RAW MATERIAL
COMPONENT NETWORK
PRODUCTION NETWORK
EXPORT MARKETING
FOREIGN DIRECT INVESTMENT
• A long term investment by a non-resident entity • Exerts substantial management control • By either setting up a subsidiary company, acquiring
shares (usually 10% or more as specified by OECD) or through the formation of a joint venture or undergoing a merger.
(www.investopedia.com)
METHODOLOGY
• 2 databases World Investment Report, 2013 (UNCTAD) fDi Markets• Period under study (2003-12)• FDI– Mergers & Acquisitions (Purchase/sale of
existing equity) & Greenfield Investments (New investments)
POLICY RECOMMENDATIONS
• Garment and Textiles – High employment generating sector
• FDI will add to the capital of the countries• Required for investment, new technology, research
and best practices• Supportive policies required – reduce regulation,
bureaucracy, improve absorptive capacity• Border Area Promotion – Complementary Factor
Endowment• Reduce Service Link Costs