Ari Kokko

• Ph D
• Professor (Full) at Copenhagen Business School

This article examines imports by Swedish firms and the utilization of the tariff preferences offered by the EU–South Korea Free Trade Agreement. To benefit from tariff preferences, the importer must make a formal request to use the preferences and also document the origin of the imported products (with a certificate of origin provided by the foreig...

This article examines the role of ownership for the relationship between innovation and exports. Analyzing a large firm-level data set on Chinese manufacturing firms during 2000–2007, we find that state ownership has a positive moderating effect on the innovation–export relationship. We ascribe this effect to state-owned firms’ privileged access to...

This explorative article contributes by investigating technology upgrading in 23 manufacturing industries in China 1995–2015. We find not only industry-specific trends in the intensity of technology upgrades but also variations in terms of global interactions. Whereas, Chinese manufacturing industries differ considerably when it comes to the releva...

The tariff preferences in FTAs do not apply automatically to all imports. Instead, importers can request to use the tariff preferences, but must then show that the imported goods fulfil the formal requirements (e.g. rules of origin) of the FTA. This is costly, which is a likely reason why tariff preferences are not always used. This research note e...

In this paper we conduct a meta-analysis to examine the link between R&D spending and economic growth in the EU and other regions. The results suggest that the growth-enhancing effect of R&D in the EU15 countries does not differ from that in other countries in general, but it is less significant than that for other industrialized countries. A close...

The global financial crisis has contributed to the redirection of trade towards new markets outside the OECD area, where both demand patterns and the institutional environment differ from those in the OECD. This study provides an empirical examination of the consequences of this shift, based on Swedish firm-level trade data. Results suggest that we...

Beckerman (1956) and Linder (1961) have suggested that international trade is not determined by supply-side factors alone—perceptions about foreign countries and country preferences matter. We explore the relation between exports, cultural distance, and country preferences in Europe. The results show that several distance and preference-related var...

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001-2008, this paper examines the aggregate effect of FDI on the survival of domestic private firms in Vie...

In order to respond to the energy crisis and environment problem, countries carry out their research and promotion about electric vehicles. As the ten cities one thousand new energy buses started in 2009, the new energy vehicles have been greatly developed in China, while the development of electric vehicles is not that good. This paper selects fou...

This paper provides an overview of the Chinese new energy vehicle industry and discusses the role of state in the industry’s development. Chinese policies have aimed to promote the development of new energy technologies and to reduce the consumer price of new energy vehicles. Chinese authorities have also been concerned about the balance between co...

With the advent of “low carbon” economy, new energy vehicles are increasingly favored by the Chinese government and manufacturers. New energy buses have become an important channel for the promotion of new energy utilizations. Based on the summary of policies, this paper conducts a thorough research on the technology and promotion achievements on n...

Foreign direct investment (FDI) is an integral part of national development strategy throughout the developing world. However, while traditionally strategies have focused on the role of inward flows only, today, outward FDI is used on a larger scale and more deliberately to access markets and resources abroad. This Introduction proposes a broad fra...

This paper contributes to the analysis of the impact of FDI on host countries by taking into account the regional dimension of spillover effects. Focusing on the case of Ukraine, we explore the effects of inward FDI on changes in productivity, technology, and efficiency in local firms. For the country as a whole, the results suggest that the presen...

Purpose The purpose of the paper is to identify the main determinants of the development of the neighbourhood electric vehicle (NEV) industry in China, including influences from private stakeholders as well as the government, and domestic as well as foreign interest groups. Particular emphasis is placed on the role of state‐owned enterprises (SOEs)...

Already Beckerman (1956) and Linder (1961) suggested that international trade is not determined by supply side factors alone – perceptions about foreign countries and country preferences matter. We explore the relation between exports, cultural distance, income differences and country preferences as revealed by voting in the European Song Contest....

Using a fixed effect variance decomposition model we estimate SUR models to analyse FDI spillovers from contagion and spillovers from competition on local firms in China. While the former type of spillover mainly depends on the degree of foreign presence, the latter kind is related to how foreign and local firms interact. The main conclusion is tha...

The capacity of the Chinese wind power sector has increased rapidly over the past half-decade, essentially doubling every year since 2005. The purpose of this paper is to describe the industry’s recent development and to discuss some of the policies and policy challenges related to the particular business environment in China. Three issues are high...

This chapter discusses framework conditions needed to enhance North-South knowledge flows through the transfer of intellectual property, trade and foreign direct investment (FDI). These conditions include mechanisms for investing in human capital, outwardoriented trade policies and FDI policies that do not discriminate against local firms. As well...

This paper investigates to what extent income growth in the Chinese provinces is linked to growth and income levels in neighboring provinces. We find that the rate of income growth in a province is positively related to income and growth in neighboring provinces. However, we find no evidence of such positive interdependence between growth in rich c...

The main characteristics of ‘the Swedish model’ are arguably related to the country’s knowledge-intensive industry and its advanced welfare state. The purpose of this paper is to discuss the historical development of these two features of the Swedish economy. The first part looks at industrial development, highlighting both the reasons for the rapi...

The increase in foreign direct and portfolio investment and the growing interest in the institutionalisation of Corporate Social Responsibility (CSR), such as the establishment of particular CSR sections, the appointment of CSR executives, and the documentation of guidelines for CSR, are two of the most notable phenomena in the Japanese business wo...

The rapid integration of China into the global economy has profoundly altered external economic conditions for its neighbors and the wider developing world. This study explores the effects on Laos, a small developing country on the fringe of the Chinese market. The Lao case captures both global effects transmitted across the world market and a regi...

This article explores the determinants of innovative capability in a sample of MNC subsidiaries operating in the European transition economies. It finds that innovative capability and autonomy in product and process technology appear to be determined by a different set of variables than capability and autonomy in marketing and management. The most...

This paper investigates to what degree neighboring Chinese provinces were linked to each other in terms of economic growth, income levels, and foreign direct investment during the period 1994-2003. When looking at mainland China, we find that both the level of income and the rate of income growth in a province depend on developments in neighboring...

Este artícuLo vueLve a anaLizar La reLación entre La integración regionaL y eL comercio utilizando eL marco que sugiere Yeats [1998 } para eL anáLisis de Los efectos de La integración europea. En este trabajo, determinamos qué industrias experimentaron Los mayores aumentos en La orientación hacia eL comercio regionaL durante tres etapas de La integ...

This paper re-examines the relation between regional integration and trade by using the framework suggested by Yeats [1998] to analyze the effects of European integration. We identify the industries that experienced the largest increases in regional trade orientation during three phases of European integration, and examine the simultaneous changes...

Slow agricultural development has restrained economic growth and poverty alleviation in Cambodia. The country's volatile history has left a legacy of weak tenure security and large areas of underutilized land. This study estimates the impact of access to land on poverty in a logistic regression framework using household survey data. Increased acces...

Lao PDR has shown a strong record of economic growth and poverty alleviation since the early 1990s. Yet, the pace of economic development has varied significantly between different parts of the country - the rate of growth was initially faster in more developed areas, but after the mid-1990s growth has been stronger in poorer rural areas. Here it i...

The purpose of this paper is to track the development of three components of the Vietnamese welfare state since the introduction of market-oriented economic reforms in the late 1980s: education, health, and social insurance. This is done with reference to Sweden's historical experiences of economic and social development. While Vietnam has achieved...

In recent years, the Vietnamese government has emphasized its commitment to create a fair business environment for both the state and non-state sectors in its medium and long-term economic development programs. This paper examines the development of the private sector in Vietnam, focusing in particular on the relationship between the state and the...

The main macroeconomic challenges at the early stages of Vietnam��s economic reforms were related to stability and growth. The main achievements of Doi Moi are also related to the success in meeting these two challenges: Vietnam has managed to combine high growth with reasonable price stability since the early 1990s. However, meeting these challeng...

Although it remains a one-party state, Vietnam has become one of the most popular host countries for multilateral and bilateral aid donors during the past decade. Vietnam��s popularity is largely explained by the fact that it perceived as a good aid recipient, and it has often been identified as a ��best practice�� example of how a government can m...

With reasonably low inflation and positive GDP growth rates in most of Europe’s transition economies since the late 1990s, the focus in the economic policy debate has gradually shifted from stabilization and recovery to questions concerning long-term growth and convergence. The new key challenge is to establish a policy environment that will facili...

The prevalence of stunting and underweight among Lao children is amongst the highest in the region. This paper provides a theoretical framework which integrates the mechanism of child malnutrition and a household decision-making behaviour and investigates the relationship between socioeconomic factors and child health outcomes. Using the Lao Multip...

This paper calculates indices of central bank autonomy (CBA) for 163 central banks as of end-2003, and comparable indices for a subgroup of 68 central banks as of the end of the 1980s. The results confirm strong improvements in both economic and political CBA over the past couple of decades, although more progress is needed to boost political auton...

Small and medium-sized enterprises (SMEs) have been important for Vietnam's rapid economic development. This paper investigates the ways in which Vietnam's SMEs have been affected by the ongoing internationalization of the Vietnamese economy and points out the challenges that lie ahead if the country's plans for further trade liberalization are rea...

During the second half of the 19th century, Sweden was transformed from a poor agricultural economy into an industrial economy with a relatively high level of technology. This development was spearheaded by raw material intensive industries: wood products, pulp and paper, and iron ore. Today, the same industries are still highly competitive and mak...

Small and medium sized enterprises (SMEs) have been important for Vietnam’s rapid economic development. However, the context in which SMEs operate are rapidly changing with the current internationalisation of the Vietnamese economy. The question posed in this paper is “How are Vietnam’s SMEs affected by the internationalization process?” This will...

Exxon Mobil and ConocoPhillips stock price has been predicted using the difference between core and headline CPI in the United States. Linear trends in the CPI difference allow accurate prediction of the prices at a five to ten-year horizon.

This paper deals with location decisions of manufacturing firms in Spain. We analyse how agglomeration economies and, especially, transport accessibility influence location decisions of firms. During the 1990s there was an intense programme of high capacity road construction which improved accessibility to municipalities. We analyse the location de...

After a review of the literature, we conclude that there is potential for significant “spillover effects” from FDI into host countries. However, we identify some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. We suggest comparing conditio...

This paper suggests that the use of investment incentives focusing exclusively on foreign firms, although motivated in some cases from a theoretical point of view, is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for financial subsidies to inward FDI – spillovers of foreign techno...

This article examines the characteristics of licensed and unsuccessful foreign-direct-investment projects in Viet Nam during the period 1988-2000, focusing particularly on the problem of high failure rates. Using project-level data on licensed foreign direct investment provided by Vietnamese authorities, it analyzes how various project characterist...

After a review of the literature, this paper concludes that there is potential for significant “spillover effects” from FDI into host countries. However, it identifies some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. The authors sugges...

The focus of the economic policy debate in most of Europe’s transition economies has shifted from stabilization and recovery to growth and convergence during the last few years. This paper summarizes some of the growth experiences of East Asia, and discusses some lessons for Europe’s transition economies. The relevant lessons from Asia focus on the...

This paper analyzes the evolution of industrial competitiveness in Sweden and Finland in a long-term perspective. The first part looks at the foundations for industrial take-off in Sweden, with some focus on the development of institutions for the creation and dissemination of the skills and knowledge needed in the emerging industrial sector. The s...

This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection a...

Trade Regimes and Spillover Effects of FDI: Evidence from Uruguay. — This paper examines differences in the character and impact of FDI entering Uruguay during import substitution, pursued until 1973, and the subsequent more outwardoriented trade regime. Regression analysis shows that the labor productivity of local firms is positively related to t...

Japan's economy stumbled in the 1990s. After four decades of rapid growth that transformed Japan into a wealthy country at the world's technological frontier, the last decade brought prolonged economic stagnation. The rapid run-up in asset prices in the late 1980s, followed by their collapse in the early 1990s, left a debt overhang that paralyzed t...

Japan's economy stumbled in the 1990s. After four decades of rapid growth that transformed Japan into a wealthy country at the world's technological frontier, the last decade brought prolonged economic stagnation. The rapid run-up in asset prices in the late 1980s, followed by their collapse in the early 1990s, left a debt overhang that paralyzed t...

This paper summarises some of the literature on the links between FDI and the transfer and diffusion of technology. We argue that the positive effects of FDI postulated in much of the recent debate are not automatic, that the effects of FDI will vary depending on the host country's characteristics and policies, and that there is a role for economic...

The existence of spillover efficiency benefits to host country economies from inward foreign direct investment (FDI) is well documented in the literature.1 The determinants of the size and scope of the spillover benefits have also been studied, but they are not as clearly and consistently documented as the existence and magnitude of the relevant ex...

During the two decades since the reunification of the country in 1976, the Vietnamese economy underwent more or less continuous change. In three major stages of reforms, Vietnam went from stagnation under orthodox central planning to double-digit growth rates in the industrial sector and an increasingly market-oriented economic system.

Examining detailed data for the home country operations of Swedish multinationals during the period 1986-1994, this paper shows that there are signs of very notable structural changes in the home country operations of these corporations. It also shows that the effects vary according to economic conditions in the home country. In the 1980s, when the...

FDI AND THE STRUCTURE OF HOME COUNTRY PRODUCTION Ari Kokko This paper provides a selective survey of the literature on some of the home country effects of foreign direct investment, and goes on to discuss the effects of FDI on the home country's production structure in some detail. Earlier literature has focused on the impact of outward investment...

This paper reviews and synthesizes the available literature focusing on the determinants of efficiency spillovers from inward FDI. In order to do so, we outline a theoretical framework for understanding the underlying 'supply' and 'demand' forces determining the scope and magnitude of FDI spillovers to host economies. The findings suggest that the...

Using references in Swedish patent data, we examine foreign technology sourcing in Swedish multidimensional enterprises (MNEs) and non-multinational small and medium-sized enterprises (SMEs). The results show that both types of firms are more likely to make references to countries with large patent stocks and to countries that are located close to...

The Vietnamese economy has by most standards performed very well over the last decade. For instance, economic growth has averaged around 8 per cent per year during the 1990s. The high growth rate has mainly been achieved through large increases in investment, and a large share of the investment has come from foreign sources. However, it is likely t...

In the backwash of the debt financing of the 1970s and the world-wide recession of the early 1980s, many developing countries, particularly in Latin America, ran into serious debt-servicing difficulties. To cope with this debt crisis, radical policy changes were introduced. These ‘structural adjustment programmes’ generally included deregulation an...

In the debate on the role of multinational corporations in international technology transfer, it has often been suggested that a large share of the host countries’ benefits from foreign direct investment may come in the form of external effects or ‘spillovers’. MNCs may, for example, introduce new technologies that are imitated by local producers,...

Multinational firms may initiate affiliate activities abroad in two different ways; either by building a new establishment (greenfield investment) or by taking over an already existing firm (acquisition).The two methods can be expected to yield different costs and benefits for the host economy. Some argue, for example, that acquisitions have few po...

There are numerous case studies to suggest that technology spillovers from foreign direct investment may provide important benefits for the host countries of multinational corporations (MNCs) (see Chapter 8). The technology and productivity of local firms may improve as foreign firms enter the market and demonstrate new technologies, provide techni...

Over the years, we have witnessed an increasing desire in a number of developing countries to exercise greater control over the activities of multinational corporations. Many countries have started to frame the environment within which these firms operate and have introduced various performance requirements for their behaviour. Special attention ha...

The debate on the role of government policies for economic performance has, in recent years, turned from discussing the choice between free markets and government intervention to asking what types of intervention are good or bad. One reason is that almost all governments, irrespective of their political orientation, have chosen to play an active ro...

The role of technical progress as a key to economic growth is widely recognized today. New technologies can be developed domestically through investments in research and development (R&D), they can be imported in various ways from abroad, or generated through some combination of the two. Since R&D activities are normally very costly, many countries...

The predominant view in the literature on foreign direct investment is that various types of spillover may provide important benefits for the countries that host foreign multinational corporations. For example, numerous case studies have shown that the technology and productivity of local firms may improve as foreign firms enter the market and demo...

The fact that multinational companies do not undertake all their research and development activities at home has become a matter of recent concern, both in the home and host countries of these companies. Some empirical work has been done on the question of why MNCs decentralize their R&D activities (see Mansfield et al, 1979; Lall, 1979a; Håkansson...

Since the 1960s the developing countries have had very different experiences regarding income and productivity growth, and the extent to which they have converged on developed countries. Some, such as the Asian newly-industrialized countries (NICs), clearly are in a process of rapid convergence, whereas others, such as most countries in Africa, sho...

In Chapter 13, we examined aggregated data on the technology imports of US affiliates in thirty-three host countries, and found some weak support for the hypotheses proposed by Wang and Blomström (1992). Our results showed that the affiliates’ technology imports were positively related to the income level of the host country and (crude proxies for)...

International trade has always been an important aspect of economic development and there has been an increasing emphasis on trade as a mechanism for promoting economic growth. In almost every year since the end of the 1940s, the volume of international trade has grown faster than the volume of world production and, as a result, the degree of inter...

The operations of multinational corporations continue to stir strong emotions, both in the home countries and abroad. In the major home countries, the debate on foreign direct investment has ranged from worries that outward FDI may substitute for domestic investment and erode technology leadership, to the argument that firms must invest abroad in o...

The existence of spillover efficiency benefits to host country economies from inward foreign direct investment (FDI) are well documented in the literature, particularly for economically developed host economies. The determinants of the size and scope of the spillover benefits have also been studied, but they are not as clearly and consistently docu...

It is a cliché to say that we live in a globalized world in which investment flows. Communications, and the operations of multinationals from all parts of the world have changed the character of the international business environment. But they say the concept of globalization poses as many questions as it answers, and it is the purpose of this book...