By Eugen von Böhm-Bawerk, William Smart

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Eugen Ritter von Böhm-Bawerk used to be an Austrian economist who made vital contributions to the improvement of the Austrian institution of economics.

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Extra resources for Capital and Interest - A Critical History of Economic Theory

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Taiwan attracted export-oriented FDI in the 1960s and 1970s, due to rising labor costs in Japan. This is similar to the relocation of industrial assets from Hong Kong to China in the 1980s and 1990s. , investors in Taiwan and in China both sought to establish production platforms for export). We can also impose controls on investor characteristics by comparing the industry distribution of FDI from Hong Kong in Taiwan with the industry distribution of FDI from Hong Kong in China. 9 percent of the total materialized Hong Kong FDI in 1994.

9 percent by 1995. While foreign firms have been able to make inroads into industries explicitly reserved for the most powerful government corporations, nonstate indigenous firms have been largely excluded. Another characteristic is that foreign majority equity controls seem unrelated to some of the well-known features of these industries. Foreign majority controls span both labor-intensive industries, such as garments, footwear, and leather products, and capital-intensive industries, such as chemicals, machinery, and instrument manufacturing.

8 percent). 38 Data on later years and on investments from Hong Kong also show a concentration pattern. 39 A more straightforward measure is the standard deviation value of the industry distribution of FDI. 3. 1. Investments by firms based in ECEs are not a significant contributing factor to the FDI concentration in Taiwan or to the FDI dispersion in China. 40 One may argue that the FDI regime in China is more liberal than that in Taiwan. Thus, the difference in the industry distribution of FDI between China and Taiwan may result from different degrees of FDI restrictions in the two economies.

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