For nearly four decades, economists and international development agencies have characterised Singapore’s economic miracle as a success story of international trade and foreign direct investment (FDI). Recently, the Organization for Economic Co-operation and Development (OECD) classified Singapore among its list of developed countries. Surprisingly, Singapore remains a major importer of FDI by transnational corporations (TNCs). It is also a net exporter of capital to the neighbouring countries. The question then, is if Singapore is a net recipient of FDI, why is it also a net capital exporter? The objective of this book is fourfold - firstly, to examine the causes of inward and outward direct investment in Singapore’s economy; secondly, to investigate the motivation for Singapore’s firms to invest abroad; thirdly, to provide a theoretical explanation for overseas direct investment from Singapore; and finally, to examine Singapore’s direct investment strategies, strengths and weaknesses, and to consider whether the current trend of outward direct investment will continue into the next millennium. The methodology adopted in this book is a modified kojima theory. It is argued that Singapore’s direct investment abroad is determined by two sets of phenomena - the objective conditions of profitability for capital, and the subjective motivation of Singapore-based firms for FDI as influenced by state policies and firms’ desires to invest outside Singapore.
Detalhes do Produto
Subtítulo: THE EXTENT OF SINGAPORES INVESTMENTS ABROAD