The Foreign Banks' Influence in Information Technology Adoption in the Chinese Banking System

2011 ◽  
pp. 141-161
Author(s):  
Michelle W. L. Fong
Keyword(s):  
Information Technology ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Technology Adoption ◽  
Host Country ◽  
Direct Investment ◽  
Banking System ◽  
Foreign Banks ◽  
Domestic Banks ◽  
Chinese Banking

Foreign direct investment has been a common conduit of technology transfer for the locally funded enterprises in the host country to adopt foreign technology. In addition, it could be a powerful agent in affecting technology adoption within a technologically backward host country. By contrast, foreign direct investment has not been a significant source of information technology transfer into the Chinese banking system. Neither has it been an effective agent in affecting technology adoption in this system. The priority and concern of the Chinese government in protecting, and retaining control of, its domestic banks and financial market have kept foreign direct investment in the banking industry at a relatively modest level. The controlled industry, the long wait for full market competition, and the inadequate infrastructure and operating framework have inhibited the foreign banks from adopting highly sophisticated information technology for their restricted business operations and from being an effective conduit in technology transfer.

The Foreign Banks' Influence in InformationTechnology Adoption in the Chinese Banking System

2006 ◽  
pp. 323-347
Author(s):  
Michelle Fong
Keyword(s):  
Information Technology ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Technology Adoption ◽  
Host Country ◽  
Direct Investment ◽  
Banking System ◽  
Foreign Banks ◽  
Domestic Banks ◽  
Chinese Banking

Foreign direct investment has been a common conduit of technology transfer for the locally funded enterprises in the host country to adopt foreign technology. In addition, it could be a powerful agent in affecting technology adoption within a technologically backward host country. By contrast, foreign direct investment has not been a significant source of information technology transfer into the Chinese banking system. Neither has it been an effective agent in affecting technology adoption in this system. The priority and concern of the Chinese government in protecting, and retaining control of, its domestic banks and financial market have kept foreign direct investment in the banking industry at a relatively modest level. The controlled industry, the long wait for full market competition, and the inadequate infrastructure and operating framework have inhibited the foreign banks from adopting highly sophisticated information technology for their restricted business operations and from being an effective conduit in technology transfer.

scholarly journals Technology Adoption Strategies in the Supply Chain: The case of Vietnamese Young Small and Medium-sized Enterprises

2020 ◽  
Vol 6 (2) ◽  
pp. 37
Author(s):  
Quang-Thanh Ngo ◽  
Ngoc-Phuc Doan ◽  
Thanh-Hai Thi Tran ◽  
Tien-Dung Nguyen
Keyword(s):  
Foreign Direct Investment ◽  
Supply Chain ◽  
Technology Transfer ◽  
Technology Adoption ◽  
Direct Investment ◽  
Exporting Firms ◽  
Technology Transfers ◽  
Economic Constraints ◽  
The Impact ◽  
Shaped Pattern

The paper, using a three-wave unbalanced panel of 3252 observations of young small and medium-sized firms in 2011–2013, examines the effect of direct linkages between firms with foreign direct investment and young small and medium-sized firms on technology adoption strategies and the further influence of technology transfers from such linkages on technology adoption strategies. Moreover, the paper analyzes the extent that economic obstacles may cause young small and medium-sized firms to choose different adoptions. Our analysis shows that exporting firms do not tend to conduct embodied backward/forward adoptions, but more likely adopt the embodied backward purchasing. In addition, the impact of competitiveness follows an inverse U-shaped pattern for the embodied backward adoption, but a U-shaped pattern for the disembodied adoption. In terms of market power, there exists an inversed U-shaped pattern for the embodied backward adoption. Under the impact of foreign direct investment (FDI) linkages and vertical spillovers, it is found that technology transfer through backward/forward linkages is associated with the embodied ones, whereas a linkage with FDI domestic customers/suppliers is less likely associated with the embodied ones. In addition, under technology transfer, firms facing economic constraints may overcome these by looking for other financial sources and embodied technology transfer. The paper suggests the path for FDI firms, young small and medium-sized enterprises (SMEs), and technology adoption strategies in the future.

scholarly journals Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

2016 ◽  
Vol 16 (3) ◽  
pp. 245-267 ◽  
Author(s):  
Oleg Mariev ◽  
Igor Drapkin ◽  
Kristina Chukavina
Keyword(s):  
Foreign Direct Investment ◽  
Gravity Model ◽  
Host Country ◽  
Direct Investment ◽  
Recipient Country ◽  
Developed Countries ◽  
Likelihood Method ◽  
Empirical Estimation ◽  
Fdi Inflows ◽  
Russian Economy

Abstract The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI). Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML) is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy) overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine) underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan) also underinvest in the Russian economy.

Economic Policy Uncertainty, Bilateral Investment Treaties, and Chinese Outward Foreign Direct Investment

2021 ◽  
Vol 94 (3) ◽  
pp. 519-557
Author(s):  
Yue Lu ◽  
Linghui Wu ◽  
Ka Zeng
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Policy Uncertainty ◽  
Outward Foreign Direct Investment ◽  
Bilateral Investment Treaties ◽  
Economic Policy Uncertainty ◽  
Chinese Investment ◽  
Investment Treaties

This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outward foreign direct investment (COFDI) in the presence of rising economic policy uncertainty in China's partner countries. We postulate that the signing of BITs should help stimulate COFDI because the treaties send a credible signal to foreign investors about the host country's intent to protect Chinese investment, and make it more difficult for the host country to violate its treaty obligations. BITs that contain rigorous investment protection and liberalization provisions, in particular, should be more likely to encourage COFDI as they directly influence Chinese investors' expectations about the stability, predictability, and security of the host market. However, while BITs generally promote COFDI, host country economic policy uncertainty may also limit their effectiveness. This is because uncertainty tends to undermine investor confidence, trigger capital flows from high- to low-risk countries, and dampen commercial activities. Poisson pseudo-maximum likelihood (PPML) estimation models of the determinants of COFDI to 188 countries between 2003 and 2017 lend substantial support to our conjectures.

scholarly journals Effective factors to encourage the foreign direct investment in Iraq

2018 ◽  
Vol 162 ◽  
pp. 02038
Author(s):  
Shahla Mohammad Ali
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
World Bank ◽  
Direct Investment ◽  
Banking System ◽  
Effective Factors ◽  
World Bank Report ◽  
The World

Foreign direct investment in Iraq cannot take its complete role for different reasons, such as: Lack of security, Corruption, Lack of Transparency, Unequipped banking system, undeveloped arbitration law, Intellectual Property Rights (IPR) issue, and internal disputes over oil rights. It was found that Iraq rates as one of the worst places in the world to do business, languishing at 166 out of 183 countries, according to a World Bank report and for starting a business Iraq ranks even lower

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