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Separately, both foreign direct investment (FDI) and industry clusters have each received considerable and growing attention in development literature. Each is broadly thought to affect economic growth positively through facilitation of knowledge and technology transfers. But FDI and industry clusters in conjunction have not hitherto been empirically considered specifically with regard to such transfers. This paper does so by examining the proposition that FDI within geographical industry clusters should transfer technology more than FDI that is geographically dispersed. Data are drawn from a quantitative survey of Hong Kong garment firms with manufacturing investments in Mainland China. Clustered FDI is shown to be significantly better than dispersed FDI at transferring technology in certain respects, implying that industry cluster and FDI policies should be considered in tandem rather than separately if developmental benefits from both are to be optimized. Key words--foreign direct investment, industry clusters, technology transfer, multinational business, development, China, Hong Kong, garment industry

Using data gathered directly from Japanese, European and U.S. firms with investments throughout ASEAN, this article shows that multinational firms uniformly anticipated Asian crisis-induced reforms that would beneficially affect overall investment environments. It also demonstrates significant correlations between reform expectations and anticipated improvements in the ASEAN investment environment. Differences between Japanese and European/ U.S. firms are highlighted, and the article concludes that reforms should be progressed as fully and swiftly as possible to safeguard FDI flows and thereby help to ensure that recovery is sustained., Links between Foreign Direct Investment and Regulatory Change I. Introduction Foreign direct investment (FDI) was revealed by the Asian crisis to be a relatively stable form of capital compared to [...]

Examines the equivocal interrelationships between economic performance and the institutions of, respectively, economic and political freedom. Use of data from firms operating in Hong Kong; Hypothesis that both economic and political freedom declines is associated with a proxy for future economic performance, competitiveness decline; Suggestion that the correlation of economic freedom declines with competitiveness decline is mediated by political freedom declines.

The issue of national competitiveness is a matter of considerable importance to both managers and public policy makers alike. Business scholars reflect this importance by their annual production of international indices of country competitiveness. Nevertheless, the notion of national competitiveness is controversial and has both (i) a narrow, concise conception that relates primarily to cost conditions as determined by exchange rates, and (ii) a broader, more nebulous conception that comprises the institutional and systemic circumstances of an economy, such as legal, governmental, public policy and other factors framing countries' wider business environments. In practical managerial terms, national competitiveness is a combination of both these narrow and broad conceptions. However, exactly how important cost conditions as opposed to institutional circumstances are to national competitiveness from a practical business perspective has never been investigated and is not known. This study uses qualitative and quantitative data gathered from senior firm executives in a specimen economy to find out. Hierarchical regression analyses suggest that institutional circumstances are significantly more important than cost conditions to the competitiveness of an economy from a practical managerial viewpoint. [ABSTRACT FROM AUTHOR]