Multinationals, Asian success and the global economy

Résumé du document

For more than thirty years, Asian countries have known an amazing period of growth, and have now a real and consequent influence on the economic world. However, these countries, like all other developing countries have to face the problem of funding resources in order to develop their economic activity. Indeed, because of their important debts, Asian countries can not turn themselves towards credit operations and the various promises made by different world organizations to help them take time to be realised. Moreover, these potential resources do not represent the same advantages as the Foreign Direct Investments (FDIs) which allow inter-alia technology transfers and procure an easier access to the international market. As a consequence, in a market globalisation context, FDIs have strongly increased since the 90s and are nowadays acting at the heart of the developing countries' economy.

Extraits

[...] Multinationals, Asian Success and the Global economy Foreign Direct Investment in Southeast Asia Since more than thirty years, Asian countries know an amazing period of growth, and have now a real and consequent influence on the economic world. However, these countries, like all others developing countries have to face with funding resources problems in order to develop their economic activity. Indeed, because of their important debts notably, Asian countries can not turn themselves towards credit operations, and the various promises made by the different world organizations to help them take time to be realised. [...]

[...] Indeed, Multi-National companies (MNCs) demonstrate new technologies by notably providing technological assistance to their local suppliers and customers, which consequently directly improve competitive level of domestic companies. MNCs moreover train workers, whom local firms may employ later, which will lead also to an increase of human capital value. Furthermore, the competitive pressure exerted on markets by doing better quality product for example, foreign companies may force local firms to operate more efficiently, and stimulate them to adopt new technologies. According to Blostrom, Globerman and Kokko (2003), MNCs have a demonstration stimulating effect on domestic firm, which help companies moving to the top. [...]

[...] A contribution to the theory of economic growth, Quarterly Journal of Economics, Vol No 65–94 UNCTAD, (2002a), World investment report” Promoting linkages UNCTAD, (2002b), Trade and development Report”, Developing Countries in World trade UNCTAD, (2003), World Investment report” FDI Policies for Development National and International Perspectives Xiaoqin F. and Dickie M., The contribution of foreign Direct stability Investment to Growth and Stability. ASEAN Economic Bulletin Vol P.314 Xiaoqin F. and Dickie M., (1998) The contribution of foreign Direct stability Investment to Growth and Stability. [...]

[...] However, the crisis which has affected these countries in 1997 has had for fist consequence the fall of FDIs towards these countries. However, in spite of the crisis, this movement has been reduced by the fact that foreign investment had a stabilizing effect on the crisis. It is even more easier to understand the impact of FDIs when we know that in 2001, FDIs were representing more than a third of the GDP in Asian countries (see graph n2). Graph : Proportion of FDIs/GDP South East Asian Countries Sources: UNCTAD 2003 a. [...]

[...] Indeed, FDI influences other macro- economics variables as employment, exports, consumption and savings. The inflow of FDI is therefore contributing to growth by this way and improves as well technology, equipment and all the infrastructures in host economies. Bende et al (2000) explain the correlation between growth and FDIs for these developing countries. For them, through the increase of the human and financial capital, the international trade and the trade policy involved by FDIs, the growth could be maintained in a long term view. [...]