IDEAS home Printed from https://ideas.repec.org/a/pet/annals/v11y2011i4p139-150.html
   My bibliography  Save this article

The Expansion of FDI Flows – A Major Factor of Globalization

Author

Listed:
  • Claudia Isac

    (University of Petrosani, Romania)

  • Codruța Dura

    (University of Petrosani, Romania)

  • Florin Cristian Ciurlău

    („Dimitrie Cantemir” Christian University, Bucharest, Romania)

Abstract

Globalization is the process whereby geographical distance becomes a less important factor in establishing and developing cross-border economic, political and socio-cultural relations; therefore production networks and Foreign Direct Investment (FDI) flows represent the main factors that play a key role in the process of getting international and worldwide spreading. Globalization phenomenon involves a process of deepening and widening of interdependence relations between different economic entities and spheres and takes into account international trade relations, the cross-border movement of international production factors, but mostly the expansion of FDI flows, having significant positive effects on the welfare of nations or geographical areas. The impact of the global economic crisis on FDI flows is a heterogeneous one, as the effects of the depression came to light in many different ways, depending on the level of development, the geographical area or the economic field. The overall fall in global FDI flows during the crisis was accompanied by a significant shift in the traditional pattern of FDI: emerging countries well-endowed with natural resources were becoming a growing source of FDI for developed countries, due to internationalization strategies carried out by their multinational companies (MNCs). Based on recent forecasts, UNCTAD specialists estimate that global FDI will recover to its pre-crisis level in 2011, rising to $1.4-1.6 trillion, approaching its 2007 peak in 2013. However, the business environment remains volatile and MNCs are cautious rather than optimistic regarding their investment plans.

Suggested Citation

  • Claudia Isac & Codruța Dura & Florin Cristian Ciurlău, 2011. "The Expansion of FDI Flows – A Major Factor of Globalization," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(4), pages 139-150.
  • Handle: RePEc:pet:annals:v:11:y:2011:i:4:p:139-150
    as

    Download full text from publisher

    File URL: http://upet.ro/annals/economics/pdf/2011/part4/Isac-Dura-Ciurlau.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pol Antràs & Mihir A. Desai & C. Fritz Foley, 2009. "Multinational Firms, FDI Flows, and Imperfect Capital Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1171-1219.
    2. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 255-255, May.
    3. Silvia Gherghel, 2009. "Triggering the Globalized Economic Crisis. Effects and Instruments to Fight It," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(1), pages 269-274.
    4. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 81-98, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dima Stela, 2016. "Globalisation, Trade Openness and Foreign Direct Investment in Romania," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(4), pages 41-53, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    2. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    3. Little, Cedric & Felzensztein, Christian & Gimmon, Eli & Muñoz, Pablo, 2015. "The business management of the Chilean salmon farming industry," Marine Policy, Elsevier, vol. 54(C), pages 108-117.
    4. Cantner, Uwe & Günther, Jutta & Hassan, Sohaib Shahzad & Jindra, Björn, 2013. "Outward FDI from the Central and Eastern European Transition Economies – A Discrete Choice Analysis of Location Choice within the European Union," MPRA Paper 51817, University Library of Munich, Germany, revised 04 Jun 2013.
    5. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    6. Matanda, Margaret Jekanyika & Freeman, Susan, 2009. "Effect of perceived environmental uncertainty on exporter-importer inter-organisational relationships and export performance improvement," International Business Review, Elsevier, vol. 18(1), pages 89-107, February.
    7. Głodowska Agnieszka & Pera Bożena & Wach Krzysztof, 2019. "International Strategy as the Facilitator of the Speed, Scope, and Scale of Firms’ Internationalization," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(3), pages 55-84, September.
    8. Claes G. Alvstam, 2012. "Spaces of International Economy and Management: Launching New Perspectives on Management and Geography," Regional Studies, Taylor & Francis Journals, vol. 46(9), pages 1274-1275, October.
    9. Saba Khalid & Jorma Larimo, 2012. "Firm Specific Advantage in Developed Markets Dynamic Capability Perspective," Management International Review, Springer, vol. 52(2), pages 233-250, April.
    10. Ruben Molina Martinez & Oscar Hugo Pedraza Rendon & Jorge Luis Alcaraz Vargas, 2012. "Multinationalization Of Mexican Companies, La Multinacionalizacion De La Empresa Mexicana," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 5(5), pages 71-85.
    11. Irina Jormanainen & Alexei Koveshnikov, 2012. "International Activities of Emerging Market Firms," Management International Review, Springer, vol. 52(5), pages 691-725, October.
    12. Scherer, Andreas, 2013. "Legitimacy Strategies in a Globalized World: Organizing for Complex and Heterogeneous Environments," Papers 566, World Trade Institute.
    13. Christos N. Pitelis, 2011. "Foreign Direct Investment and Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 1, Edward Elgar Publishing.
    14. Julie Ann Elston & Alois Weidinger, 2019. "Entrepreneurial intention and regional internationalization in China," Small Business Economics, Springer, vol. 53(4), pages 1001-1015, December.
    15. CHITOUR Hind Louiza, 2013. "The Key Drivers behind Novo Nordisk’s Growth in the Diabetes Market in China," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    16. Jensen, Peter D. Ørberg, 2012. "A passage to India: A dual case study of activities, processes and resources in offshore outsourcing of advanced services," Journal of World Business, Elsevier, vol. 47(2), pages 311-326.
    17. José Pla-Barber & Pervez N. Ghauri, 2012. "Internationalization of service industry firms: understanding distinctive characteristics," The Service Industries Journal, Taylor & Francis Journals, vol. 32(7), pages 1007-1010, May.
    18. İpek, İlayda & Bıçakcıoğlu-Peynirci, Nilay, 2020. "Export market orientation: An integrative review and directions for future research," International Business Review, Elsevier, vol. 29(4).
    19. Pease, Stephanie & Paliwoda, Stanley & Slater, Jim, 2006. "The erosion of stable shareholder practice in Japan ("Anteikabunushi Kosaku")," International Business Review, Elsevier, vol. 15(6), pages 618-640, December.
    20. Eriksson, Taina & Nummela, Niina & Saarenketo, Sami, 2014. "Dynamic capability in a small global factory," International Business Review, Elsevier, vol. 23(1), pages 169-180.

    More about this item

    Keywords

    globalization; Foreign Direct Investments (FDI); multinational companies (MNCs); FDI flows; the global economic crisis; developed countries; emerging economies; developing and transition countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pet:annals:v:11:y:2011:i:4:p:139-150. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Imola Driga (email available below). General contact details of provider: http://www.upet.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.