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Emerging East Asian Economies As Foreign Investors: An Analytical Survey

Author

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  • HAL HILL

    (Arndt-Corden Department of Economics, Crawford School, CAP, Coombs Building, Australian National University, Canberra, ACT, 0200, Australia)

  • JUTHATHIP JONGWANICH

    (School of Management, Asian Institute of Technology, Klong Luang, Pathumthani, 12120, Thailand)

Abstract

This paper documents and analyzes the rise of emerging East Asian economies as major international investors. Foreign direct investment (FDI) from these economies is rising faster than their economic growth, trade and inward FDI, and the region is by far the most important investor from the developing world. We develop an analytical interpretation of the behavior and competitive strategies of major developing East Asian outward investors. We conclude that the drivers of this outward FDI (OFDI) are generally consistent with the international investment literature. But in addition, particular factors are at work, including the desire for natural resource security, and exceptionally high domestic savings rates. The major challenge for the rest of the world is to accommodate these FDI flows, as part of the global reorientation of economic activity toward East Asia.

Suggested Citation

  • Hal Hill & Juthathip Jongwanich, 2014. "Emerging East Asian Economies As Foreign Investors: An Analytical Survey," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(03), pages 1-26.
    • Handle: RePEc:wsi:serxxx:v:59:y:2014:i:03:n:s0217590814500192
    DOI: 10.1142/S0217590814500192
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    References listed on IDEAS

    as
    1. Juthathip Jongwanich & Douglas H. Brooks & Archanun Kohpaiboon, 2013. "Cross-border Mergers and Acquisitions and Financial Development: Evidence from Emerging Asia," Asian Economic Journal, East Asian Economic Association, vol. 27(3), pages 265-284, September.
    2. repec:elg:eebook:13910 is not listed on IDEAS
    3. Prema-chandra Athukorala, 2005. "Product Fragmentation and Trade Patterns in East Asia," Asian Economic Papers, MIT Press, vol. 4(3), pages 1-27, Fall.
    4. Froot, Kenneth A. (ed.), 1994. "Foreign Direct Investment," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226266213, December.
    5. repec:cup:cbooks:9780521898102 is not listed on IDEAS
    6. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, December.
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    Cited by:

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    2. Nádia Campos Pereira Bruhn & Juciara Nunes de Alcântara & Dany Flávio Tonelli & Ricardo Pereira Reis & Luiz Marcelo Antonialli, 2016. "Why Firms Invest Abroad? A Bibliometric Study on OFDI Determinants from Developing Economies," Global Business Review, International Management Institute, vol. 17(2), pages 271-302, April.

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    More about this item

    Keywords

    East Asia; outward foreign investment; emerging economies; JEL Classification: F21; JEL Classification: F23; JEL Classification: O33; JEL Classification: O53;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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