IDEAS home Printed from https://ideas.repec.org/a/taf/fosoec/v39y2010i2p127-143.html
   My bibliography  Save this article

The Interaction of Foreign Direct Investment with Electronic Commerce in Less Developed Countries

Author

Listed:
  • Guilherme Pires
  • John Stanton
  • Ioannis-Dionysios Salavrakos

Abstract

This paper argues that the international growth of e-commerce (whether business--business, business--consumer or consumer--business) can increase a critical technology infrastructure gap that disadvantages less-developed countries (LDCs) in their future e-commerce participation. This gap is linked to the type as well as the volume of foreign direct investment (FDI) which economies at different levels of development attract. The macro technical, legal and socio-economic problems that entwine FDI inflow and e-commerce growth in LDCs, reducing e-commerce attractiveness and also making FDI less attractive, are classified. Governments must recognise this interdependence, pin-point the types of macro constraints operating in their particular economy that curb FDI in e-commerce attracting investment and prioritise the desirability and incentives offered to the various types of FDI infrastructure.

Suggested Citation

  • Guilherme Pires & John Stanton & Ioannis-Dionysios Salavrakos, 2010. "The Interaction of Foreign Direct Investment with Electronic Commerce in Less Developed Countries," Forum for Social Economics, Taylor & Francis Journals, vol. 39(2), pages 127-143, January.
    • Handle: RePEc:taf:fosoec:v:39:y:2010:i:2:p:127-143
    DOI: 10.1007/s12143-008-9021-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s12143-008-9021-x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s12143-008-9021-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roghieh Gholami & Sang-Yong Lee & Almas Heshmati, 2005. "The Causal Relationship between ICT and FDI," WIDER Working Paper Series RP2005-26, World Institute for Development Economic Research (UNU-WIDER).
    2. Tony Addison & Almas Heshmati, 2003. "The New Global Determinants of FDI Flows to Developing Countries: The Importance of ICT and Democratization," WIDER Working Paper Series DP2003-45, World Institute for Development Economic Research (UNU-WIDER).
    3. Catherine L. Mann, 2000. "Electronic Commerce in Developing Countries," Working Paper Series WP00-3, Peterson Institute for International Economics.
    4. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Host Country Competition, Labour Skills, and Technology Transfer by Multinationals," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 14, pages 221-231, Palgrave Macmillan.
    5. Sanjeev Dewan & Kenneth L. Kraemer, 2000. "Information Technology and Productivity: Evidence from Country-Level Data," Management Science, INFORMS, vol. 46(4), pages 548-562, April.
    6. Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," The World Bank Research Observer, World Bank, vol. 17(2), pages 191-235, September.
    7. John H. Dunning, 1977. "Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach," Palgrave Macmillan Books, in: Bertil Ohlin & Per-Ove Hesselborn & Per Magnus Wijkman (ed.), The International Allocation of Economic Activity, chapter 12, pages 395-418, Palgrave Macmillan.
    8. Janet Aisbett & Guilherme Pires, 2003. "Macro issues in electronic commerce: the cultural divide," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 5(2), pages 369-390.
    9. Marcin Piatkowski, 2002. "The 'New Economy' and Economic Growth in Transition Economies: The Relevance of Institutional Infrastructure," WIDER Working Paper Series DP2002-62, World Institute for Development Economic Research (UNU-WIDER).
    10. Lee, Jeong-Yeon & Mansfield, Edwin, 1996. "Intellectual Property Protection and U.S. Foreign Direct Investment," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 181-186, May.
    11. Moran, Theodore H., 2000. "The product cycle model of foreign direct investment and developing country welfare," Journal of International Management, Elsevier, vol. 6(4), pages 297-311.
    12. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    13. Matambalya, Francis & Wolf, Susanna, 2001. "The Role Of Ict For The Performance Of Smes In East Africa. Empirical Evidence From Kenya And Tanzania," Discussion Papers 18717, University of Bonn, Center for Development Research (ZEF).
    14. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-267, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guilherme Pires & John Stanton & Ioannis-Dionysios Salavrakos, 2010. "The Interaction of Foreign Direct Investment with Electronic Commerce in Less Developed Countries," Forum for Social Economics, Springer;The Association for Social Economics, vol. 39(2), pages 127-143, July.
    2. Wang, Zhe & Jiang, Dianchun & Zhang, Ming, 2024. "Seeking new location advantages: Analysis of emerging digital cross-border M&As—Based on TIMG index," International Business Review, Elsevier, vol. 33(2).
    3. Ozkan, Kubilay S.L. & Khan, Huda & Deligonul, Seyda & Yeniyurt, Sengun & Gu, Qian (Cecilia) & Cavusgil, Erin & Xu, Shichun, 2022. "Race for market share gains: How emerging market and advanced economy MNEs perform in each other’s turf," Journal of Business Research, Elsevier, vol. 150(C), pages 208-222.
    4. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    5. G. Ietto-Gillies, 1998. "Location of Affiliates and Degree of Internationalisation: An Analysis of the World's Largest 664 TNCs," CIBS Research Papers in International Business 14-98, London South Bank University CIBS.
    6. Tamar Almor & Niron Hashai & Seev Hirsch, 2006. "The product cycle revisited: Knowledge intensity and firm internationalization," Management International Review, Springer, vol. 46(5), pages 507-528, September.
    7. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    8. Goh, Ai-Ting, 2005. "Knowledge diffusion, input supplier's technological effort and technology transfer via vertical relationships," Journal of International Economics, Elsevier, vol. 66(2), pages 527-540, July.
    9. Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2009. "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 691-704, August.
    10. Goh, Ai Ting, 2003. "Knowledge Diffusion, Supplier's Technological Effort and Technology Transfer via Vertical Relationships," CEPR Discussion Papers 4085, C.E.P.R. Discussion Papers.
    11. Radovan Kastratović, 2020. "The impact of foreign direct investment on host country exports: A meta‐analysis," The World Economy, Wiley Blackwell, vol. 43(12), pages 3142-3183, December.
    12. Zac Rafidi & George Verikios, 2022. "The Determinants of Foreign Direct Investment: A Review and Re‐Analysis of Evidence from Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(1), pages 71-90, March.
    13. Filippov, Sergey, 2008. "Russia's emerging multinationals: trends and issues," MERIT Working Papers 2008-062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Sawhney, Aparna & Kahn, Matthew E., 2012. "Understanding cross-national trends in high-tech renewable power equipment exports to the United States," Energy Policy, Elsevier, vol. 46(C), pages 308-318.
    15. Siddique Hasinul Hussan & Bardai Barjoyai Bin, 2023. "Seventy Years of FDI Literature: Review, Comparison and Critique," Economics, Sciendo, vol. 11(1), pages 195-221, June.
    16. Caputo, Francesco & Soto-Acosta, Pedro & Chiacchierini, Claudio & Mazzoleni, Alberto & Passaro, Pierluigi, 2021. "Smashing local boundaries for sustain companies’ innovativeness: The role of international R&D teams," Journal of Business Research, Elsevier, vol. 128(C), pages 641-649.
    17. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.
    18. Duong, Nguyen Minh Huy, 2015. "An Investigation of the Determinants of US FDI in Developed Countries, 1982-2010," MPRA Paper 66518, University Library of Munich, Germany.
    19. Crespo, Nuno & Fontoura, Maria Paula, 2007. "Determinant Factors of FDI Spillovers - What Do We Really Know?," World Development, Elsevier, vol. 35(3), pages 410-425, March.
    20. Edward J. Malecki, 1983. "Technology and Regional Development: A Survey," International Regional Science Review, , vol. 8(2), pages 89-125, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:fosoec:v:39:y:2010:i:2:p:127-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RFSE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.