Transnational Corporations

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3 times a year
ISSN: 
2076-099X (online)
http://dx.doi.org/10.18356/d3e73f33-en
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This journal takes a fresh look at major legal, sectorial, regional and environmental issues facing corporations operating internationally. Released three times a year, it provides in-depth policy-oriented research findings on significant issues relating to the activities of transnational corporations.
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Developing country FDI and development: The case of Chinese FDI in the Sudan You do not have access to this content

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Author(s):
Huaichuan Rui
31 Dec 2010
Pages:
32
Bibliographic information
No.:
3,
Volume:
19,
Issue:
3
Pages:
49–80
http://dx.doi.org/10.18356/08e89398-en

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This paper examines the development implications of Chinese investment in the Sudan to enable a better understanding of the impact of foreign direct investment (FDI) from developing countries. By examining China’s early investment in the Sudan by the Chinese National Oil Corporation (CNPC) and the consequent cascade effect on the Sudan’s significant economic growth during the decade between 1997 and 2007, this paper highlights how progress was achieved through interaction between Chinese FDI and host institutions. It demonstrates that developing country FDI can make positive contributions to development particularly in developing countries, due not only to its capacity appropriate for developing countries, but also to its strategies and mindset more adaptable to the development needs and institutional environment in the host country. While extant research often emphasizes how institutions make FDI’s impact on host countries differ and how institutions in developing countries should be improved in order to attract FDI, this research indicates that proactive adaptation of strategy by transnational corporations (TNCs) to fit local needs and institutions may be more effective for improving institutions and consequently the development in host countries.