Showing papers by "Ari Kokko published in 2013"

Introduction: Outward foreign direct investment from emerging economies and national development strategies: three regimes

Abstract: Foreign direct investment (FDI) is an integral part of national development strategy throughout the developing world. However, while traditionally strategies have focused on the role of inward flows only, today, outward FDI is used on a larger scale and more deliberately to access markets and resources abroad. This Introduction proposes a broad framework for the analysis of OFDI from emerging economies. It provides a picture of how the role of FDI in development has changed over time and outlines the theoretical and institutional context in which the current wave of OFDI takes place. Theories of development and FDI, the role of government, and the trade policy environment have interacted to form three distinct development paradigms with different roles for FDI. For convenience, we will refer to these as the import substituting, the export-oriented and the FDI-led development regimes. Where local companies previously engaged mostly by way of trade-based measures, FDI is now becoming more integrated into corporate competitive strategies and national development policies.

Market Integration and Transportation: Beer in Lao PDR

Abstract: To study the process of domestic market integration in Lao People’s Democratic Republic (hereafter Lao PDR), this chapter explores the spatial variation in beer prices and its relationship with transport costs and various local market characteristics. More specifically, we study how the price of a 640 ml bottle of Beer Lao varies across the country. In a well- integrated market, we expect the law of one price to hold. Controlling for transaction costs, a homogeneous product should have the same price throughout the market. Sellers trying to charge a higher price will find that potential buyers turn to competing suppliers.