Cited By
View all- Tiong LNgo DLee Y(2018)Forex prediction engineInternational Journal of Computational Science and Engineering10.1504/IJCSE.2016.08021313:4(364-377)Online publication date: 19-Dec-2018
Application of dynamic diffusion theory in foreign direct investment of Taiwan IC industry in China
Pages 2 - 9
Abstract
This study applies dynamic diffusion theory to forecast Foreign Direct Investments (FDIs) of Taiwan IC industry into China. We compare the FDI external and internal influence factors among IC design, packaging and testing industries. The internal impact is stronger for IC packaging and testing firms than for IC design ones, revealing the profound imitating inclination of IC packaging and testing industry. The potential FDI amount is estimated to be much greater for IC packaging and testing industry. Consistent with product life cycle theory, Taiwan transfers low-end IC packaging and testing manufactory toward China where the labour wages are much lower.
References
[1]
Bass, F.M. (1969) 'A new product growth model for consumer durables', Management Science, Vol. 15, pp.215-227.
[2]
Castellanos, M., Salazar, N., Casati, F., Dayal, U. and Shan, M-C. (2007) 'Predictive business operations management', International Journal of Computational Science and Engineering, Vol. 2, pp.292-301.
[3]
Caves, R.E. (1971) 'International corporations: the industrial economics of foreign investment', Economica, Vol. 18, pp. 1-27.
[4]
Chen, T-J. and Ku, Y-H. (2000) 'The effect of foreign direct investment on firm growth: the case of Taiwan's manufactures', Japan and the World Economy, Vol. 12, pp.153-172.
[5]
Choi, J.J. and Jeon, B.N. (2007) 'Financial factors in foreign direct investments: a dynamic analysis of international data', Research in International Business and Finance, Vol. 21, pp.1-18.
[6]
Chu, C.H., Teng, M-J., Huang, C.H. and Lin H.S. (2005) 'Virtual integration and profitability: some evidence from Taiwan's IC industry', International Journal of Technology Management, Vol. 29, pp.152-171.
[7]
Deng, P. (2007) 'Investing for strategic resources and its rationale: the case of outward FDI from Chinese companies', Business Horizon, Vol. 50, pp.71-81.
[8]
Dunning, J.H., Kim, Z.K. and Lee, C-I. (2007) 'Restructuring the regional distribution on FDI: the case of Japanese and US FDI', Japan and the World Economy, Vol. 19, pp. 26-47.
[9]
Fox, J.B., Donohue, J.M. and Wu, J. (2005) 'Beyond the image of foreign direct investment in China: where ethics meets public relations', Journal of Business Ethic, Vol. 56, pp.317-324.
[10]
Havasi, A. (2007) 'Wave analysis of different splitting methods in the linearised shallow water equations', International Journal of Computational Science and Engineering, Vol. 3, pp.264-270.
[11]
Hennart, J-F. (1982) A Theory of Multinational Enterprise, University of Michigan Press, Ann Arbor, Ml.
[12]
Hooper, V. and Kim, S-J. (2007) 'The determinants of capital inflow: Does opacity of recipient country explain the flow?', Economic System, Vol. 31, pp.35-48.
[13]
Hymer, S. (1960) The International Operations of Multinational Firms: A Study of Direct Foreign Investment, MIT Press, Cambridge, Massachusetts (Published by MIT Press under same Title in 1976).
[14]
Kindleberg, C.P. (1969) American Business Abroad, Yale University Press, New Haven, CT.
[15]
Kugler, M. and Rapoport, H. (2007) 'International labor and capital flows: complements or substitutes?', Economics Letters, Vol. 94, pp.155-162.
[16]
Li, Y., Hung, C.Y. and Chiang, Y.H. (2007) 'A dynamic growth model for flows of foreign direct investment, dynamics, economic growth, and international trade', DEGIT - XII, Melbourne, Australia, 29-30 June.
[17]
Loungani, P., Mody, A. and Razin, A. (2002) 'The global disconnect: the role of transactional distance and scale economies in gravity equations', Scottish Journal of Political Economy, Vol. 49, pp.526-543.
[18]
Mahajan, V., Muller, E. and Bass, F.M. (1990) 'New product diffusion models in marketing: a review and directions for future research', Journal of Marketing, Vol. 54, pp.1-26.
[19]
Meade, N. and Islam, T. (2006) 'Modelling and forecasting the diffusion of innovation - a 25-year review', International Journal of Forecasting, Vol. 22, pp.519-545.
[20]
Porter, M.E. (1998) 'The Adam Smith address: location, clusters and the 'new' microeconomics of competition', Business Economics, Vol. 33, pp.7-13.
[21]
Porter, M.E. (2000) 'Location, competition and economic development: local clusters in global economy', Economic Development Quarterly, Vol. 14, pp.15-34.
[22]
Razin, A. (2003) 'FDI flow and domestic investment: overview', CESifo Economic Studies, Vol. 49, pp.415-428.
[23]
Robinson, B. and Lakhani, C. (1975) 'Dynamic price model for new product planning', Management Science, Vol. 10, pp.1113-1122.
[24]
Rugman, A.M. (1979) International Diversification and the Multinational Enterprise, Farborough, Lexington.
[25]
Rugman, A.M. (1986) 'New theories of multinational enterprises: an assessment of international theory', Bulletin of Economic Research, Vol. 38, pp.101-118.
[26]
Sher, P.J. and Yang, P.Y. (2005) 'The effect of innovative capabilities and R&D clustering on firm performance: the evidence of Taiwan's semiconductor Industry', Technovation, Vol. 25, No. 1, pp.33-43.
[27]
Smith, D.M. (1981) Industrial Location: An Economic Geographical Analysis, 2nd ed., John Wiley, New York.
[28]
Vernon, R. (1966) 'International investment and international trade in the product cycle', Quarterly Journal of Economics, Vol. 80, May, pp.190-207.
[29]
Xu, W-G., Hu, D-P., Lei, A-Z. and Shen, H-Z. (2008) 'FDI chaos and control in China', Research in International Business and Finance, Vol. 28, pp.17-28.
[30]
Yeyati, E.L., Panizza, U. and Stein, E. (2007) 'The cyclical nature of North-South FDI flows', Journal of International Money and Finance, Vol. 26, pp.104-130.
Index Terms
- Application of dynamic diffusion theory in foreign direct investment of Taiwan IC industry in China
Index terms have been assigned to the content through auto-classification.
Recommendations
The effect of the internet on FDI in East and Middle/West China
It is increasingly recognised that the level of internet infrastructure may have significant effect on Foreign Direct Investment (FDI). This paper studies the effect of internet on FDI in East and Middle/West China. Using a gravity model of FDI and ...
Foreign Direct Investment, Exports and Economic Growth: Pooled Mean Group (PMG) and Causality Analysis for West Africa
ICEBA 2018: Proceedings of the 2018 International Conference on E-Business and ApplicationsThe aim of this paper is to analyze the relationship between foreign direct investment (FDI), economic growth and export in host countries is known to have an important role in economic literature suffering from unemployment problems and lack of ...
Interaction of Foreign Direct Investment and Exports with Growth: A Review of Chinese Economy
ICEBA 2018: Proceedings of the 2018 International Conference on E-Business and ApplicationsThe aim of this study is to explore the sustainability of Chinese economic growth with reference to foreign direct investment and exports. Some conservative measures like net exports to the gross domestic product as well as export to GDP prejudiced and ...
Comments
Information & Contributors
Information
Published In
Publisher
Inderscience Publishers
Geneva 15, Switzerland
Publication History
Published: 01 December 2010
Author Tags
Qualifiers
- Article
Contributors
Other Metrics
Bibliometrics & Citations
Bibliometrics
Article Metrics
- View Citations1Total Citations
- 0Total Downloads
- Downloads (Last 12 months)0
- Downloads (Last 6 weeks)0
Other Metrics
Citations
Cited By
View all- Tiong LNgo DLee Y(2018)Forex prediction engineInternational Journal of Computational Science and Engineering10.1504/IJCSE.2016.08021313:4(364-377)Online publication date: 19-Dec-2018
View Options
View options
Get Access
Login options
Check if you have access through your login credentials or your institution to get full access on this article.
Sign in