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FDI Variations in Emerging Markets: The Role of Credible Commitments-With Special Reference to Asia

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  • J. P. Singh

    (Communication, Culture and Technology Program Georgetown University 3520 Prospect Street NW Suite 311 Washington, DC 20057)

Abstract

What accounts for variations in foreign direct investments (FDI) in emerging telecommunications markets? This article shows that the key to capturing FDI ºows is making and enforcing credible commitments both internationally and domestically toward liberalization reform in telecommunications sectors: the differences in such commitments account for FDI variations. The commitments made by emerging markets in the World Trade Organization's (WTO) telecommunications accord are first examined. Furthermore, a qualitative analysis of four important Asian markets seeks to correlate such commitments with FDI ºows. The case of China is conceptually and empirically interesting: the country's size, growth rate, and state-led coordination mechanisms create a credible commitment illusion, at least in the short run. Copyright (c) 2005 Massachusetts Institute of Technology.

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  • J. P. Singh, 2005. "FDI Variations in Emerging Markets: The Role of Credible Commitments-With Special Reference to Asia," Information Technologies and International Development, MIT Press, vol. 2(4), pages 75-87.
    • Handle: RePEc:tpr:itintd:v:2:y:2005:i:4:p:75-87
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    Cited by:

    1. Quamrul Alam & Mohammad Abu Yusuf & Ken Coghill, 2010. "Unilateral liberalisation and WTO GATS commitments: the telecommunications sector in selected countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(1), pages 43-64, May.

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