Title: Socially responsible foreign direct investment: a challenge to TNCs in emerging markets

Authors: Xiaowen Tian; Moxi Song; Ran Tian

Addresses: Department of Global Strategy, Entrepreneurship and Family Business, School of Business, Bond University, Gold Coast, Queensland 4229, Australia. ' Department of Marketing, School of Business, Hong Kong Baptist University, No.34 Renfrew Road, Kowloon Tang, Hong Kong. ' School of Business, Sancta Sophia College, 8 Missenden Rd, Camperdown, Sydney, NSW 2050, Australia

Abstract: A widening gap between the rich and the poor is found in most, if not all, emerging market countries that have recently opened up to FDI and is threatening the sustainability of economic progress in these countries. The study finds strong evidence that FDI contributes to the widening gap between rich and poor regions through negative productivity spillovers in the largest emerging market of China, and provides some theoretical explanations. The study discusses implications of the findings for transnational corporations in making socially responsible investment and for emerging market countries in attracting foreign investors to poor regions.

Keywords: FDI; foreign direct investment; regional inequality; emerging markets; corporate social responsibility; CSR; China; transnational corporations; TNCs; rich; poor; wealth; poverty; sustainability; economic progress; sustainable development; regions; negative productivity spillovers; responsible investment; foreign investors; international business; entrepreneurship development; entrepreneurs.

DOI: 10.1504/JIBED.2012.048565

Journal for International Business and Entrepreneurship Development, 2012 Vol.6 No.2, pp.158 - 171

Published online: 30 Aug 2014 *

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