The Impact of Investing in Emerging Markets on Firm Performance: An Exploratory Study of Taiwan Residents Multinational Enterprises in the Chinese Mainland

Ⅰ.IntroductionDuring the past two decades,many multinationalenterprises(MNEs)have made substantial investmentsin emerging markets.Two factors dominate thereasoning in favor of such an investment strategy:lowlabor costs and the large size of the markets in the hostcountries.While these two economic factors seem quite

How International Tax Rules Adapt to the Development of the Digital Economy:The Perspective of the Republic of Azerbaijan

This article outlines the significance of the digital economy,highlighting the challenges to taxation,and introducing the focus of the article on Azerbaijan's perspective.In recent decades,the digital revolution has transformed the global economy,reshaping industries,business models,and consumer behavior at an unprecedented pace.This transformation,commonly referred to as the digital economy,encompasses a broad spectrum of activities ranging from e-commerce and digital services to data analytics and cloud computing.As the digital economy continues to expand its influence,traditional tax systems face significant challenges in adapting to this new reality.This has ignited discussions worldwide across various legal and regulatory domains,and international taxation is no exception.The tax consequences are extensive,impacting both direct and indirect taxation,broader tax policy matters,and tax administration.

Vertical Spillover Effects of Multinationals on Chinese Domestic Firms via Supplier-Customer Relationships

Foreign direct investment （FDI） can benefit domestic firms in the host country. Using firm- level data for China, we find statistically positive vertical spillover effects of multinational enterprises on the performance of domestic firms through backward and forward supplier- customer relationships. The spillover effects are mainly from large multinational enterprises and are greater for state-owned firms and in poor regions. Our results are robust for both parametric regression and nonparametric matching techniques. Our findings have strong policy implications： while regulations relating to building business relationships with domestic firms when seeking foreign direct investment should be established, such policies should be aimed at private firms, big multinationals and less developed regions.

Investigating Chinese Outward Foreign Direct Investments:How Can Firm-level Data Help?

The empirical literature on China＇s outward foreign direct investment mainly relies on aggregate data from official statistics, but the reliability of such data is currently a matter of concern because it does not take account of relevant features such as industry breakdown, ownership structure and entry mode. A novel firm-level database, EMENDATA, compiled by matching data from several available sources on various types of cross-border deals and including information on group structure, provides a more accurate picture and enables new empirical analyses of the rapidly increasing presence of Chinese companies abroad. Based on this database, this paper offers a more precise assessment of the geographical and sector specialization patterns of Chinese outward foreign direct investment into Europe and suggests new avenues for future research.

China, the G20 and the International Investment Regime

China has become a major home country for outward foreign direct investment （OFDI） flows. As a result, the country is increasingly concerned with protecting its OFDI and facilitating the operations of its firms investing abroad and creating a strong universal international investment law and policy regime. This article briefly reviews the emergence of China as an outward investor. It continues with an analysis of some policy issues related to the rise of FDIfrom emerging markets. A brief discussion of issues central to the future of the international investment law and policy regime follows, before focusing on several outcomes that could be pursued under China＇s G20 leadership： non- binding shared principles that could outline the architecture of a universal framework on international investment; an international support program for sustainable investment facilitation; and the creation of an additional intergovernmental platform that would allow for a continued systematic intergovernmental process to discuss the range of issues related to the governance of international investment, preferably paralleled by an informal, inclusive and result-oriented consensus-building process that takes place outside intergovernmental settings.

Does distance matter in foreign direct investment sub-national location choice?Evidence from China

Multinational enterprises(MNEs)make investment decisions according to the distance factors at a sub-national level.This paper made estimates using the gravity model with provincial foreign direct investment(FDI)data from 2000 to 2012 and employed three concepts of distance.Our emprical results indicate that geographic distance and cultural distance have significant negative effects on FDI flow,whereas economic distance has a significant positive effect.It suggests that FDI prefers to locate in regions that are geographically and culturally close but economically distant from the home country,which further implies that FDI in China is dominated by vertical FDI.Our findings suggest that Chinese provincial governments should place emphasis on attracting FDI from culturally close countries and provide institutional support to encourage and promote horizontal FDI.

Inside the China-EU FDI Bond

For some 20 years, the rate of investment by EU enterprises into China has been rising, reaching an annual average of some US$5bn over the 10 years to 2009. Conversely, the EU has not been a focus for Chinese investments, nor has Chinese investment been important to the EU despite the wide attention given to recent landmark cross-border acquisitions. Therefore, the overall impact of Chinese investment on the European economy is small. However, this situation might now be changing following institutional changes in the EU. In light of the potential for Chinese foreign direct investment to the EU, in this paper we outline the motives for, and patterns of Chinese outward investments to the EU, and the impacts that these investments might exert on the recipient.