Emerging Markets FDI China Dissertation

Competitive Dynamics in Emerging Markets: Case of China’s FDI Inflows

Emerging Markets: Foreign direct investment (FDI) constitutes one of the main modes of market entry which has been used by a growing number of multinational enterprises (MNEs) to achieve growth. Through FDI firms engage in a special form of capital flows which involves the relocation of capitals, as well as intangible assets such as management skills and production know-how.

As underscored in extant literature on international trade, the benefits of FDI are experienced by both the foreign firm and host country. Put differently, FDI results into a mutually beneficial relationship in which case the foreign firm benefits from a larger market for its products and access to important inputs while the host nation benefits from increased trade and a multiplier effect. While licensing and export provide less risky paths to foreign market entry, research based on the market failure theory attributes the growing preference for FDI to the need by firms to make full gains from their capital.

Emerging Markets FDI Dissertation
Emerging Markets FDI Dissertation

Traditionally, FDI flows have been from developed countries to other developed countries. Countries such as the United States, United Kingdom and Japan have in particular been major players in inward and outward FDI. In year 2000, US received 22% of the world’s FDI while countries in the EU cumulatively received an estimated 49% of the FDI. This trend marked by the flow of FDI from developed to developed countries is however changing. The last decade has in particular been marked by a trend in which FDI flows are from developed countries to emerging countries such as the BRIC (Brazil, Russia, India and China).

In terms of competitiveness in FDI and international trade in general, emerging countries have for long been considered as uncompetitive. Developed nations have traditionally crowded out developing countries in international trade due to several barriers. As an example, it is until recently that developing countries have become more open to international trade and their exports have mainly comprised of primary products. They also face a host of barriers revolving around national policy, credit constraints and technological limitations among others.

Despite these barriers emerging countries have in the last decade emerged as equally competitive players at the international front. Academics have even pointed out that emerging markets are in the current times more competitive than developed markets. The researchers justify this assertion by pointing out that an analysis of corporate profitability in both economies shows significantly different results. In the developing world, the dynamics of competition are such that both the short-term and long-term persistence in profitability of organisations is lower than that of the developed world. To a large extent, this is a clear indicator that competition in the developing world is more intense. While focusing on inward FDI, the present research determines why China has become one of the most competitive emerging markets in this form of international trade.

Dissertation Objectives

  • To determine the level of competitiveness in attracting FDI among emerging markets
  • To investigate the specific factors influencing China’s competitiveness in attracting FDI
  • To examine the extent to which factors influencing China’s competitiveness in attracting FDI can be maintained in the long term
  • To highlight the various ways through which competitiveness of China’s FDI can be measured

Dissertation Contents

1 – Introduction
Study background
Research problem
Research question
Research objectives
Significance of the study
Overview of research methodology
Structure of the study

2 – Literature Review
Factors influencing competitiveness in inward FDI among emerging economies
Theoretical perspectives on determinants of FDI
Specific factors in emerging countries that increase a country’s competitiveness in attracting FDI inflows
Challenges in effectively competing for FDI in emerging markets

3 – Research Methodology
Data source and Research design
Research approach
Research strategy
Data collection techniques and process
Data analysis techniques
Quality of the study findings
Ethical considerations and limitations

4 – Results, Findings and Discussions
Factors influencing China’s competitiveness in attracting FDI
Sustainability of China’s FDI attractiveness
Discussion of study findings

5 – Conclusions and Recommendations
Competitiveness of emerging markets in attracting FDI
Factors influencing China’s competitiveness in attracting FDI
The sustainability of factors influencing China’s competitiveness in attracting FDI
Study recommendations

References

View This Dissertation Here: FDI China Dissertation

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Steve Jones

My name is Steve Jones and I’m the creator and administrator of the dissertation topics blog. I’m a senior writer at study-aids.co.uk and hold a BA (hons) Business degree and MBA, I live in Birmingham (just moved here from London), I’m a keen writer, always glued to a book and have an interest in economics theory.

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