By Bernadette Andreosso-O’Callaghan, Jean-Pascal Bassino, Jacques Jaussaud (eds.)
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Extra resources for The Changing Economic Environment in Asia: Firms’ Strategies in the Region
Example text
1988) Explaining International Production (London: Unwin Hyman). Dunning, J. (1995) `Reappraising the Eclectic Paradigm in a Age of Alliance Capitalism,' Journal of international Business Studies, 26: 3, 461±93. 24 FDI, Industrial Labor Transformation and Growth Ernst, D. (1998) `Catching-up, Crisis and Industrial Upgrading: Evolutionary Aspects of Technological Learning in Korea's Electronic Industry,' Asia Paci®c Journal of Management, 15: 2, 247±83. Fabry, N. and Maximin, B. (1998) `Les deÂterminants macro-eÂconomiques des investissements directs eÂtrangers en Asie du Sud-est: le cas du Japon et des USA,' in Guerraoui D.
Thus FDI is in value added activities such as manufacturing or services activities. These activities bene®t from a 22 FDI, Industrial Labor Transformation and Growth relatively highly educated labor force. In that sense, Korea differs from other countries such as Malaysia or Thailand. In the case of Malaysia, all the retained variables may explain the growth during the period 1981±95. This is true for the population variable, which is a proxy for domestic demand, seen as a structural and quantitative variable.
Inward FDI and exports have the most signi®cant contributions. Both may be associated to a technology transfer process to Malaysia. Finally, domestic investment has a positive and signi®cant link with growth. Thus, Malaysian growth seems to be more dependent on foreign than on domestic demand. In such a context, the host country needs to pay particular attention to its attractiveness, especially with regard to quali®cations and infrastructure. The positive sign of the exports variable shows that Malaysia has incorporated foreign technology; however, the coef®cient is still low.