Matthew C. H. Yeung

The Determinants of Foreign Direct Investment in Services

This paper has two main objectives: first, to consider country specific determinants that attract services FDI, and second, to compare the importance of these determinants vis-a-vis traditional determinants that attract manufacturing FDI. Using OECD countries as our sample, and 1980 to 2003 as our time period, we consider the determinants of inward FDI in a panel setting. Our results provide empirical evidence to support the view that no new theories may be necessary to explain the determinants of services FDI.

From customer satisfaction to profitability

Although customer satisfaction is increasingly seen as an important objective for many businesses, the extent to which it is taken seriously is varied, its measurement is problematic and the precise nature of its impact on financial performance and shareholder value remain the subject of debate. While the existence of a link between customer satisfaction and business performance is clearly a central tenet of marketing theory, evaluating the existence, nature and strength of this relationship at the level of the firm has proved problematic. Researchers have had much greater success when focusing on individual behavioural constructs (such as quality and satisfaction and satisfaction and loyalty) and rather less success when exploring the link between behavioural outcomes and financial performance. Using data from the American Consumer Satisfaction Index, the aim of the paper was to evaluate empirically the direct relationship between customer satisfaction and a range of measures of financial performance. In general, the results suggest that satisfaction does have a positive financial impact but the direct effects are generally small.

Evaluating mutual funds in an emerging market: factors that matter to financial advisors

Growth, both in terms of size and choice, in the mutual fund industry among emerging markets has been impressive. However, mutual fund research in emerging markets hardly exists. This paper intends to fill this gap. In particular, the paper surveys the relative importance of factors considered important in the selection of mutual funds by financial advisors in emerging markets. Our survey focuses on Malaysia where the mutual industry started in the 1950s but only gained importance in the 1980s with the establishment of a government initiated programme. The results of our survey point to three important factors which dominate the choice of mutual funds. These are consistent past performance, size of funds and costs of transaction. Factors which relate to fund managers and investment style are not considered to be relatively important. With the impending liberalization of the financial markets in the developing world, our findings would assist those international funds that are considering expanding their operations into these emerging markets.

Malaysia - Trade Policy Review 2006

The Trade Policy Review (TPR) is an important document for small open economies like Malaysia. It provides an outsider perspective of its trade policies and implementation. In this paper we provide an update of the Malaysian economy emphasising the degree of competitiveness vis-a-vis other Asian counterparts. We also discuss the issue of regional and bilateral trading agreements involving Malaysia with a focus on the services sector. Finally, we briefly consider the issue of tariff protection - an issue raised by many commentators of the TPR. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd .

A causality analysis of the FDI‐wages‐productivity nexus in China

Purpose - The purpose of this paper is to examine the relationships between foreign direct investment (FDI), wages and productivity in China. The direction of causality among these variables is also to be emphasized. Design/methodology/approach - The authors develop a system of equations and test the relationships based on a vector autoregressive regression (VAR) model and two-step generalized method of moments (GMM)-type estimation approach. They use a panel data set of Chinas provinces for a 20-year time period, 1988-2007, and also distinguish between the coastal and inland provinces. Findings - The result confirms the cheap labor argument for China, although this particularly true for inland provinces. In the coastal provinces, FDI inflow influences the wage rates upwards. FDI also has a positive effect on productivity, particularly in the coastal provinces, but does not act as a significant determinant of FDI. Research limitations/implications - Factors other than wage rates and labor productivity are also important determinants of FDI. This paper focuses on the interplay of these three variables, while assuming other factors constant. Practical implications - Cheap labor as an attraction of FDI is a short term policy. Improvements in productivity should be the focus both in the coastal and the inland provinces. A conducive business environment, a suitable education policy and incentives for greater R&D contribute toward improving labor productivity, which in turn attracts greater FDI inflow. Originality/value - The paper provides empirical evidence on the direction of causality between FDI inflow, wages rates and labor productivity in one system of equations.

Modelling Chinese manufacturers' technology adoption behaviour

Abstract This paper uses firm-level survey data from Hong Kong to identify determinants of technology adoption. The data analysis was guided by proposing a new model that was built upon the Theory of Planned Behaviour and Technology Acceptance Model. Three types of determinants are considered. They are determinants controllable by the technology suppliers and technology buyers, respectively; an external determinant that is not controllable by both the technology suppliers and buyers. This paper reviews research in related areas and the proposed model suggests ways in which behavioural, environmental and organisational issues may be important to technology adoption. The result reveals that behavioural and organisational issues are relevant to technology adoption decision, whereas the relevance of environmental issues is questionable.

Initial Job Choice in the Greater China Region: The role of corporate social responsibility

Job application choice is influenced by job/organisational attributes, both traditional ones, such as salary, prospects, location, company type and newer ones, such as corporate social responsibility (CSR). To examine the varying importance of these and the impacts of location and gender for initial job applications, potential job applicants were surveyed who were about to join the jobs market based in China, Hong Kong and Taiwan, often grouped together as the Greater China region. Using conjoint analysis of different job scenarios it is found that the importance of different job characteristics does vary across the region, although with no clear result regarding gender. The theoretical and practical implications of this work is discussed.

Customer Satisfaction and the Consumption Function

This paper evaluates the extent to which the American Customer Satisfaction Index (ACSI) acts as a determining variable of the US consumption function. Results show that the ACSI is a significant self-predictor of personal consumption expenditure, as well as a potent policy variable even when income and wealth are controlled for.

The European Union’s Foreign Direct Investment into Indonesia: Determinants and Threats

For many developing economies, foreign direct investment (FDI) has been the oil that fired the engine of economic development. Typical examples include Malaysia, Singapore, Taiwan and South Korea. For countries that entered the FDI arena in the 1970s, the early-mover advantage provided them with the necessary flow of investment. Having access to cheap labour and natural resources made these economies a haven for MNCs from developed economies. Over time, however, a greater number of players have entered this FDI tournament. The late-comers, such as Vietnam, China, the Central and East European (CEE) countries as well as several Latin American nations, are now able to compete with the early-movers and in some cases are winning the tournament. At the same time, the proportion of FDI flowing to developing countries has decreased markedly in recent years (UNCTAD, 2002). South-East Asia has been particularly hit as FDI declined from USD 27.7 billion in 1997 to USD 10.7 billion in 2001. This dramatic decline has made the tournament among these countries more intense.

Chinese Cultural Values and Knowledge Sharing

In order to address the growing economic and social pressures of the 21st Century, Chinese must build solid foundations for a knowledge-based economy. However, knowledge sharing is relatively uncommon in Chinese communities and there has been little success in understanding the motivations and barriers of knowledge sharing in the Chinese context and thus there appears to be no systematic way to analyze the obstacles to information sharing among Chinese. In possession of Chinese cultural values has been commonly regarded as the reason for knowledge hoarding among Chinese. The present study examines whether or not Chineses Confucian philosophy is responsible for the reluctance of knowledge sharing.