Developing countries in East Asia recorded remarkable economic growth until the Asian financial crisis erupted in mid-1997. Although several countries experienced devastating setbacks, most of them recovered to achieve reasonable rates of economic growth over the next few years. Sound macroeconomic management, export-oriented policies, and the availability of skilled and low-wage labour are among the factors that contributed to the rapid economic growth before the crisis and the recovery thereafter. Especially noteworthy in this regard is the role played by foreign direct investment (FDI).
This comprehensive book identifies the factors that contributed to the expansion of FDI inflows in East Asia and the factors that enabled recipient countries to utilize FDI effectively. It includes detailed case studies on China, South Korea, Taiwan, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Also included is a comparative study of investing firms headquartered in the United States, Japan and Hong Kong. The authors conclude that social stability, clear and effective policy implementation and corporate governance are all key factors in reaping economic success from FDI.
Introduction Shujiro Urata, Chia Siow Yue, and Fukunari Kimura 1. FDI Flows, their Determinants, and Economic Impacts in East Asia Shujiro Urata 2. Japanese Manufacturing FDI and International Production and Distribution Networks in East Asia Fukunari Kimura and Mitsuyo Ando 3. U.S. Firms and East Asian Development in the 1990s Robert E. Lipsey 4. Hong Kong as a Source of FDI: Experience and Significance Edward K. Y. Chen 5. The Role of Inward FDI: A Case Study of Foreign Firms in the Republic of Korea Taeho Bark and Hwy-Chang Moon 6. Inward FDI in Singapore: Policy Framework and Economic Impact Chia Siow Yue 7. Firm-Level Productivity and FDI in Taiwan Bee-Yan Aw 8. Foreign Investment and Development: Indonesia’s Experience Mari Pangestu and Titik Anas 9. FDI Inflows and Economic Development: The Postcrisis Experience of Malaysia Sieh Lee Mei Ling 10. FDI and Economic Development: The Case of the Philippines Myrna S. Austria 11. The Experience of FDI Recipients: The Case of Thailand Peter Brimble 12. FDI and Economic Development: The Case of Vietnam Tran Van Tho 13. The Experience of FDI Recipients: The Case of China Yu Yongding 14. Liberalization, FDI Flows, and Economic Development: The Indian Experience in the 1990s Nagesh Kumar