on Changing Markets for FDI - Research, Development and Innovation in the Czech Republic on 10 June 2004 will assess investment needs and opportunities in industry and in Research and Development... , Alcatel , France. Key themes and programme highlights The Role of Public Policy
Practical experience from R&D-intensive industries
Innovative Financing for FDI and R&D
The EIB shall host a conference on changing markets for FDI in Poland on 1st December 2005 in Wroclaw. The conference is designed to assess the developments and trends of Foreign Direct Investment in Poland outlining the role of the EIB in supplying funding. The event will provide a platform for senior professionals to network, gain insight from key industry presentations and meet with experienced stakeholders in a unique and challenging format. The Polish Minister of Economy and Ivan Pilip, Vice-President, European Investment Bank will deliver key note speeches at the event. A high
The European Investment Bank will discuss new developments and trends for FDI in Poland on the occasion of its conference Changing markets for FDI - European Investment Bank financing of Foreign Direct Investment In Poland. The aim of this conference is to give those attending a clear picture of the emerging investment opportunities and trends in Poland. Delegates will be welcomed by Grazyna... labour costs, skilled manpower and strategic geographical location the country has become a hot spot for FDI in 2004 and the inflow of foreign capital is maintaining high pace in 2005. The highly topical
will be extended at the EIB's own risk (i.e. without EC guarantee). The EPF enables the Bank to support EU Foreign Direct Investments (FDI) in Eastern Neighbour countries, with a EUR 500 million ceiling... , which provides for a higher risk bearing capacity. The EPF enables the Bank to play a pro-active role in supporting the resumption of FDI in Eastern Europe and thereby contribute
Private sector development has been one of the top operational priorities of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP) since it was set up in October 2002. By 2020, the partner countries will have to create 22 million jobs in order to contain their current rate of unemployment. Developing SMEs and the private sector, and enhancing productive foreign direct investment (FDI) and transnational corporate partnerships are the best means of meeting the socioeconomic challenges facing the Mediterranean countries.
The internationalisation of production in Europe: Case studies of foreign direct investment in old and new EU member states Preface by Sauli Niinstö , Vice-President
Export-platform FDI: the Irish experience ( Frank Barry )
Where do foreign firms locate in France and why? ( Thierry Mayer )
FDI in Hungary: the first mover's advantage and disadvantage ( Magdolna Sass )
FDI in small accession countries: the Baltic states ( Gábor Hunya )
To read the individual articles, please follow the respective links. The full version is accessible below.
TIM CELULAR S.A.
The project concerns the 2010-2011 investments for the geographical coverage expansion and capacity increase of TIM´s GSM and UMTS networks in Brazil.
Apart from promoting local economic development, the project will transfer economic and technological knowledge by supporting a well-established European company diversifying through FDI into Latin America.
Telecom
If the project was located in Europe, it would not fall under Annex I or II of EIA directive 85/337/EEC, amended by directives 97/11/EC and 2003/35/EC. Mobile networks based on GSM/UMTS technology have limited
The EIB will organise on 10 June 2004 a conference on FDI with a special focus on investment in R&D in the Czech Republic. The role of public policy, practical experience from R&D intensive industries as well as innovative financing instruments will be addressed at the conference.
GDF Suez
The project comprises the development, construction, commissioning and operation of a hydro power plant (Laja, 34.4 MW).
The project provides for increasing demand of electricity from renewable energy sources, supporting EU priority objectives related to climate change. The project is in line with ALA mandate by supporting European FDI and promoting environmentally sustainable energy.
Energy
The project, if located in the EU, would fall under Annex I of the EIA-Directive, requiring an Environmental Impact Assessment (EIA) to be performed including public consultation. The promoter
Volkswagen Argentina SA
The project concerns the promoter’s refurbishing, modernisation and expansion activities in its existing plant for the manufacturing of gearboxes in Córdoba, Argentina, to support the increasing demand of its small/medium segment vehicles in the Latin American market that are assembled in its plants in the region (mainly Brazil and Argentina).
Contributing to i) support of EU presence in Latin America, ii) the increase of FDI and transfer of technology and know-how in Argentina and iii) the economic development of Argentina through employment and exports.
Industry
Bank of Tokyo-Mitsubishi Ltd. (BTM)
Bank of Tokyo-Mitsubishi Ltd. (BTM) with a request to grant a Global Loan for supporting a smaller-scale FDI in Poland.
The final beneficiaries of the loan will be smaller scale FDI promoters, investing in the fields of I2I, environment and energy. It will contribute to social and economic development through job creation and introduction of modern industrial technologies and processes.
Credit lines
Compliance with EU directives, national legislation and guidelines is made a condition and to be confirmed for each allocation under the Global Loan
million ceiling for projects in Russia. This facility enables the Bank to support investment grade projects, especially EU foreign direct investments (FDI) in the region.
to increasing FDI in Serbia, developing the local automotive industry, supporting the introduction of state-of-the-art equipment and production organisation, and finally contributing to the increase
PAPERS
EIB
The internationalisation of production in Europe:
Case studies of foreign direct investment in old
and new EU member states
Export-platform FDI: the Irish experience 8
Frank Barry
Where do foreign firms locate in France and why? 38
Thierry Mayer
FDI in Hungary: the first mover’s advantage 62
and disadvantage
Magdolna Sass
FDI in small accession countries: the Baltic states 92
Gábor... -President 5
Conference speakers 7
The internationalisation of production in Europe:
Case studies of foreign direct investment in old
and new EU member states
Export-platform FDI: the Irish experience 8
Kristian Uppenberg & Armin Riess
The employment effects of foreign direct investment 86
Jozef Konings
Regional integration, FDI, and regional development 110
Ari Kokko & Patrik Gustavsson
Volume 9... direct investment 52
Kristian Uppenberg & Armin Riess
The employment effects of foreign direct investment 86
Jozef Konings
Regional integration, FDI, and regional development 110
Ari Kokko & Patrik... of global GDP to 22 percent, and foreign
direct investment (FDI) flows have risen from the equivalent of 2 percent of global gross
fixed capital formation to 10 percent. Not surprisingly, the importance
, with a EUR 500 million ceiling for projects in Russia. This facility enables the Bank to support investment grade projects, notably EU Foreign Direct Investment (FDI) in the region.
investment grade projects, notably EU Foreign Direct Investment (FDI) in the region. The EPTATF is governed by a Contributors’ Committee. Contributions can be provided by EU Member States
The internationalisation of production in Europe: Causes and effects of foreign direct investment and non-equity forms of international production Preface by Philippe Maystadt , President
The internationalisation of production: moving plants, products, and people ( Armin Riess and Kristian Uppenberg )
Long-term trends in international production ( Zbigniew Zimny )
Determinants and growth effects of foreign direct investment ( Kristian Uppenberg and Armin Riess )
The employment effects of foreign direct investment ( Jozef Konings )
Regional integration, FDI, and regional development ( Ari
for an amount of EUR 1.5 billion, with a EUR 500 million ceiling for projects in Russia. This facility enables the Bank to support investment grade projects, notably EU foreign direct investment (FDI
their attractiveness for foreign direct investment (FDI). PPPs can be a driver of modernisation, making it possible not only to mobilise the capital required for infrastructure projects but also to help
supports European Foreign Direct Investment (FDI) in Russia, while at the same time contributing to European policies in the important areas of energy efficiency and climate change. By helping to enhance... , of which up to EUR 500 million for Russia, that will complement the afore-mentioned mandate for the 2007-2013 period and will enable the Bank to support notably EU Foreign Direct Investments (FDI
% of GDP in recent years.
Furthermore, thanks to an overall favourable attitude in these countries towards foreign
participation in privatisation programmes, foreign direct investment (FDI) has financed...
Domestic Saving
Foreign Saving
Total Investment (=Total Saving)
share of GDP (%)
* CEEC-6 = Hungary, Poland, Czech Republic, Slovenia, Slovakia, Estonia
Source: PlanEcon(1999)
FDI and foreign... that FDI, averaging just over 3% of GDP in
2 For a discussion on the economic impact on FR Yugoslavia from the Kosovo conflict, see
’ financial transfers, FDI (foreign direct investment) and services (such as tourism). Growth therefore slowed to 3.7% in 2009, and this had repercussions for the fiscal balances.
The global context
With more than EUR 300bn being invested in public utilities infrastructure in the southern and eastern Mediterranean by 2030 (for water management, urban services and energy in particular), the Mediterranean partner countries will have to rapidly develop their ability to mobilise the private sector and make themselves more attractive for foreign direct investment (FDI). Which is why FEMIP, the EIB’s dedicated financial arm for the socioeconomic development of the nine Mediterranean countries (1), has launched an ambitious programme of technical assistance to encourage the use of public
The 3rd Ministerial Committee Meeting of EIB's Facility for Euro-Mediterranean Investment and Partnership (FEMIP) will take place in Naples on 10 and 11 November 2003. Its purpose is to evaluate progress one year after the establishment of the Facility, discuss FEMIP's future prospects, as well as important policy issues confronting Mediterranean Partner Countries (MPCs) in their quest for sustained and sustainable growth and development, namely: Infrastructure financing as support to private sector development,
Facilitation of FDI in the Mediterranean region and
Financial instruments
Export-Import Bank of India (EXIM Bank)
Framework loan to support both investments in renewable energy and energy efficiency and the EU presence in India through FDI and transfer of technology and know-how from Europe.
The proposed operation would contribute to support both investments in renewable energy and energy efficiency in India as well as the EU presence in India. This operation would be a material contribution to the EU-India Strategic Partnership which foresees, inter alia, cooperation in trade and investment, and fighting climate change.
Energy
Credit lines
The key objective
Philips Lighting Maseru (Pty) Ltd
Operation of a manufacturing plant in Lesotho aimed at producing energy saving fluorescent lamps for the Southern African market (including recycling).
To produce energy efficient lamps in order to assist the South-African Government with the role-out of its Energy Demand Side Management Initiative. The project will create 500 jobs, and will be one of the first FDI helping the Lesotho economy to diversify its industrial structure away from the footloose textile industry.
Industry
The production activities will be carried in a building rented from
further supports Foreign Direct Investment (FDI) by a European company into Syria.
Industry
An equivalent project in the EU would fall under Annex II of Directive 97/11/EC. An Environmental Impact
models that have been created to stimulate foreign direct investment (FDI). Mr Philippe de Fontaine Vive, Vice-President of the EIB in charge of FEMIP, as key speaker at the Economist Conference... (especially SMEs and FDI) and support projects helping to establish a propitious climate for private investment (economic infrastructure, health and education schemes). FEMIP's ultimate goal is to help
of supporting FDI operations as they act as a catalyst for economic development. The investment is another evidence of growing FDI flows to Slovakia. The European Investment Bank, the financing arm
their merchandise exports fall by 30%
(offset to a slight extent by an 18% decline in imports), FDI (foreign direct investment) by 31%, migrants’
financial transfers by nearly 20%, income from tourism... , there was even an improvement (BBB-).
4 FDI from the BRICs (Brazil, Russia, India and China) grew by 25% in 2009.
5 The Asean Comprehensive Investment Agreement (ACIA). While maintaining states... in favour of FDI
Over the past decade the FEMIP countries have managed to double the volume of FDI they
have attracted into their economies6, a tangible sign of the progress that has been made
projects to 33%. It places emphasis on FDI and private sector activity, as well as on social-sector projects, particularly health, education and environmental protection, in the belief that this will make... FDI project for Toyota car manufacturing. EIB finance for infrastructure went mainly for environmental projects and the earthquake reconstruction effort. Among the projects financed in Turkey
to private-sector projects to 33%. It places emphasis on FDI and private sector activity, as well as on social-sector projects, particularly health, education and environmental protection, in the belief... economy, including two significant FDI project in the automotive sector. EIB finance for infrastructure went mainly for environmental projects and the 1999 earthquake reconstruction effort. Among
the
range of international activities
(imports, exports, FDI, international
outsourcing) of firms in the biggest
EU economies (France, Germany,
Italy, Spain, UK) and their
‘competitiveness... effects
–IncludedIncludedCountry fixed effects
3,6520.0699***0.156***Global exporter
1,7770.04770.134***Active outsourcer
4,3720.0558***0.122***Passive outsourcer
1,8620.0980***0.257***FDI
5,3200.0449
assistance and investment aid funds provided by the EU. Private sector development is the top priority of FEMIP especially for SMEs and FDI. It is also able to support projects for private sector
review the recommendations put forward at the FEMIP Experts' Meeting, held in Vienna in March 2006. These recommendations provide for the improvement of the business climate and attraction of FDI
Union in 2010. In this connection, the EIB's objective is to bolster the proportion of financing it devotes to private-sector projects to 33%. It places emphasis on FDI and private sector activity
developments in Turkey have fostered an improved business climate, which has resulted in a sharp increase in FDI in 2005 and 2006, with the Turkish car industry but one sector of the domestic economy
dla BIZ – finansowanie przez EBI
bezpośrednich inwestycji zagranicznych w Polsce
European Investment Bank
Changing markets for FDI –
EIB Financing of Foreign Direct Investment in Poland
Programme
13:15 Coffee and registration
13:30 Welcome and opening address
Ivan Pilip, Vice-President, European Investment Bank
Władysław Ortyl, Deputy Minister, Ministry of Regional Development
FDI – The role... of the Polish Information and Foreign
Investment Agency, PAIIZ
15:00 Trends and developments for FDI in Poland – Case Studies
Chairman: Heinz Olbers, Head of Division lending operations in Poland, EIB
fully exploited, with non-oil exports and FDI at one third and one fifth of their potential. The Forum acknowledged that private firms are the engine of economic growth and employment. To meet
lending up to EUR 8-10 billion in the MPCs by 2006. Its top priority is to promote and support private sector development (especially SMEs and FDI) and facilitate projects helping to establish
equipment at the Yeniköy power station on the Aegean coast and the construction of more environment-friendly power and heating plants. In the private sector the EIB has supported flagship FDI
. In the private sector the EIB has supported flagship FDI projects for Toyota's car manufacturing plant in Adapazari and the Automotive Investment Turkey project.
will foster the transfer of economic and technological knowledge by supporting a well-established European company diversifying through FDI into Latin America. In addition, it will promote the EU
billion that will complement the afore-mentioned mandate for the 2007-2013 period and will enable the Bank to support notably EU Foreign Direct Investments (FDI) in the region. In Georgia, apart from
the determinants
of FDI and whether FDI inflows
have a positive impact on econom-
ic growth in the host economy.
Drawing on a large body of re-
search, he showed that FDI was at-
tracted by a broad range of factors.
One of the strongest drivers of FDI
is the size of and distance to the
host country. Economic fundamen-
tals of this kind account for around
half of world FDI flows. The rest is
essentially determined by policies,
although research shows that the
policies that attract FDI are not limit-
ed to incentives targeting foreign
investors per se. Instead, FDI is at-
tracted to policy
-growth economy. This paper focuses on the two mostly quoted catalysts—i.e. FDI and
human capital. It provides evidence that—although crucial as enablers for the Irish economic
performance—neither the rapid expansion of the compulsory education system in the 1970s and 1980s
nor the sheer volume of FDI inflows can by themselves explain why Ireland has grown so much faster
than other world economies. Instead, it argues that higher education, especially the
vocational/technical slant of educational provision, and the sector composition of FDI in favour of
high-tech industries, were self
emphasis on FDI and private sector activity, as well as on social-sector projects, particularly health, education and environmental protection, in the belief that this will make for social stability
Union in 2010. In this connection, the EIB's objective is to bolster the proportion of financing it devotes to private-sector projects to 33%. Qualitatively, the Facility places emphasis on FDI
development (especially SMEs and FDI) and support projects helping to establish a propitious climate for private investment (economic infrastructure, health and education schemes). FEMIP's ultimate goal
private sector development (especially SMEs and FDI) and support projects helping to establish a favourable climate for private investment (economic infrastructure, health and education schemes
power station on the Aegean coast and the construction of more environment-friendly power and heating plants. In the private sector the EIB has supported flagship FDI projects for Toyota's car
-Mediterranean mandates, risk capital resources and technical assistance funds from the EU budget. FEMIP's top priority is to promote private sector development (especially SMEs and FDI) and support projects
(especially SMEs and FDI) and support projects helping to establish a propitious climate for private investment (economic infrastructure, health and education schemes). FEMIP's ultimate goal is to help
mandates, risk capital resources and technical assistance funds from the EU budget. FEMIP's top priority is to promote private sector development (especially SMEs and FDI) and support projects helping
development (especially SMEs and FDI) and support projects helping to establish a propitious climate for private investment (economic infrastructure, health and education schemes). FEMIP's ultimate goal
of the financing directly promoted the growth of private businesses , through Foreign Direct Investment - FDI (Turkey, Tunisia), joint ventures resulting from cooperation between MPC promoters (Algeria
is to promote private sector development (especially SMEs and FDI) and support projects helping to establish a favourable climate for private investment (economic infrastructure, health and education
SMEs and FDI) and support projects that help to create a favourable climate for private investment (economic infrastructure, programmes in the health and education sectors). Its ultimate goal
the trade imbalance. The first two real
flows make up around half of the deficit. Over the past decade FDI (foreign direct investment) inflows
have been roughly on a par with the revenue from tourism... in
revenue from tourism of less than 5%, despite the fact that tourist numbers were up by more than 6%;
(iv) a reduction in transfers of income of nearly USD 2bn; (v) a decrease in FDI of around 31.2%. All... for foreign direct investment (their share of FDI has doubled since the late 1990s).
Thus there is little doubt that success in emerging from the crisis, assuming that the FMCs do not
abandon
budget as well as technical assistance and investment aid funds provided by the Union. FEMIP's top priority is to promote private sector development (especially SMEs and FDI) and support projects helping
, illustrating FEMIP's proactive role in underpinning investment by private operators in the MPCs, whether domestic investment or foreign direct investment (FDI). These meetings provide an opportunity to present
(especially SMEs and FDI) and facilitate projects helping to establish a favourable climate for private investment (economic infrastructure, health and education schemes). FEMIP's ultimate goal
priority is to promote the development of the private sector (in particular SMEs and FDI) and support projects that help to create a favourable climate for private investment (economic infrastructure
with a total EUR 45 million (11% of its lending in the region), was
marked by EIB’s first FDI support in the Western Balkans and the first global loan in the Federal
Republic of Yugoslavia
and
stability, and marks FEMIP’s contribution to the Barcelona process.
Last year the EIB, through FEMIP, supported:
• investment in private sector businesses including Foreign Direct Investment – FDI
” research that induces new knowledge
• Foreign R&D (FRD): new products and processes have a direct effect
on productivity when implemented in the country (FDI, licences,
imitation); an indirect effect
cooperation strategy, EIB financing in
Latin America, focuses on two areas:
1. Continued support for the EU’s presence
in Latin America through the financing of
foreign direct investment (FDI) and trans... of Latin America, including 5 regional loans cov-
ering a total of 9 countries, for a total amount of EUR 2.4 billion.
Latin America is one of the key destinations of FDI from EU compa-
nies
, water) have been estimated at approximately € 250 BN for next
decade
square4 The Mediterranean has not succeeded in becoming a leading
destination for FDI
square4 Local private equity is mobilized... and improving the legal framework (2)
Working Group objectives:
square4 Discuss ways to attract, protect and guarantee infrastructure related FDI
and to increase legal security of projects
square4 Favour
ice boom is proving more favourable to developing
economies than previous booms. Rising commodity exports have been accompanied by rising
manufacturing exports. FDI and domestic investment have been... ). This decline in overall
private flows is more than fully accounted for
by a decline in net lending by commercial
banks. On the other hand, the region
experienced an increase in FDI flows to USD
20.1 billion, a 5.7 percent increase from
2006. This is due to the completion of major
privatization deals and increased investment
in the energy sector. Moreover, FDI from the
Gulf countries to the FEMIP
that Asia and Latin
America have for the EU.
Europe is Latin America’s most important
source of foreign direct investment (FDI),
the leading donor of development aid for
the region and its second most... regional trading part-
ner and one of its foremost recipients of
FDI. Against this background, the EIB will
continue to support the EU’s presence in
ALA through the financing of FDI and the
transfer
region.
5.4 Foreign direct investment
5.4.1 The Bank continues to support foreign direct investment (FDI) into the Accession Countries to
enhance the international competitiveness of local... the EIB’s position as a natural co-
financier of such FDI projects in the region.
5.4.2 There is a clear positive link between investments made by foreign companies and economic
growth. Specific benefits derived from such FDI in the Accession Countries can be identified as
the transfer of know-how, technology and management (driving the introduction of best practices,
new labour skills
sector, particularly Small and Medium-Sized enterprises (SMEs), but it will also attract Foreign Direct Investment (FDI), necessary for economic growth and job creation. In a world, however, where
operations continued in 2004, with over one third of signatures aimed at supporting SMEs and FDI in the region. Lending in transport, energy and environment amounted to EUR 660 million, EUR 728 million and EUR
under previous mandates, the Bank
has provided backing for investment
projects featuring a mutual interest
for Asia and Europe, most of which
have involved either FDI from Europe
or transfers
to the analyses of bodies such as ANIMA) over 1 million
jobs a year compared to 100 000 for FDI.
Supporting the Promotion and Financing
of Innovation in the Mediterranean (IT1)
6
derstanding of innovation
Facility for Euro-Mediterranean Investment and Partnership • Facility for Euro-Mediterranean Investment and Partnership
FEMIP and the development
of smEs in the mediterranean
Private sector development has been
one of the top operational priorities
of the Facility for Euro-Mediterranean
Investment and Partnership (FEMIP)1
since it was set up in October 2002.
By 2020, the partner countries will have
to create 22 million jobs in order to con-
tain their current rate of unemployment.
Developing sMEs and the private sector,
and enhancing productive foreign direct
investment (FDI
) or to the EU’s presence in Vietnam (through FDI or
transfers of technology and know-how from Europe)
100
6
* * * * *
• The Board of Directors discussed and endorsed
of their entrepreneurial activities in
the New Member States. Foreign direct investment
(FDI) can significantly accelerate the economic progress
of whole regions and promote convergence in living
standards. FDI is a channel for the transfer of modern
technologies, innovative production processes and
style of management. FDI is an important source of
jobs in the newly established production plants as well
as in already existing supply companies. In addition,
taxes paid by companies established with the help of
FDI create budget revenues in the New Member States.
| Knowledge based society
operations to EUR 1 119 million, with some half of signatures aimed at supporting small and medium-sized
enterprises (SMEs) and foreign direct investment (FDI). Lending in the transport, energy
and continuous strong FDI inflows, expected remain at high levels in 2007 will
create additional investment opportunities for the Bank in the private sector business.
Croatia
In support of Croatia’s bid
to higher growth is expected, allowing countries in the region to
continue catching up with the EU.
Demand for EIB finance for foreign direct investment (FDI) by large Western companies remained
in the Region, via a number of global lines of credit, in
partnership with local banking and other parties. The EIB, as well as encouraging
investment in the Region by foreign companies (FDI), is also
hand, the region experienced an increase in FDI
flows to USD 20.1bn, a 5.7% increase from 2006. This
is due to the completion of major privatisation deals
and increased investment in the energy sector. More-
over, FDI from the Gulf countries to the Mediterranean
region increased also in infrastructure, real estate and
tourism. Egypt was the largest net FDI recipient and in
2007 it accounted for 50% of total flows in the region.
The government intensively continues with its pro-
gramme to increase the economic role of the private
sector mainly in banking and telecommunications.6
FDI
. Economic activity remained
vibrant, mainly on account of domestic demand, nota-
bly investment financed by buoyant FDI inflows. How-
ever, the impact of the global economic and financial
crisis... developments in the glo-
bal economy are expected to hinder investment activ-
ity in Mediterranean countries through a decline in
FDI, with exports (including tourism) and remittances
also projected... domestic demand
and FDI-financed capital imports. With the deepening of
the crisis, the external balance of the region is expected
to deteriorate significantly this year, mainly as a result
of the large
(albeit
mixed) environmental infrastruc-
ture.
Second, foreign direct investment
(FDI) is increasing in the region.
This is encouraged by the EIB,
which has also increased its capac-
ity for working in this area,
including public-private-partner-
ships (PPP). FDI is often an effec-
tive way to bring about a transfer
of knowledge, technology and
practices in the field of environ-
ment (see case
in the bay of Sabra, in the free port of Bizerte, 60 km north-west of Tunis. This a Foreign Direct Investment (FDI) operation, as Tunisacier S.A is a 100% subsidiary of the Riva Group, Italy's first
mitigation or to EU presence in
India through FDI or transfer of technology and know-how from Europe
150
IREDA RENEWABLE ENERGY FRAMEWORK LOAN (India)
for financing projects contributing
Loan (Philippines)
Support for projects contributing to mitigation of climate change or to the EU
presence in the Philippines through FDI and transfer of technology and know-how
from Europe
50