金融学专业私募股权投资资料外文翻译文献Word下载.docx

1、1. Introduction International business and economic development are closely related. When applying to emerging markets, foreign direct investment （FDI） and development economics are two sides of the same coin. In terms of the classical OLI model of the economics of international business, the multin

2、ational enterprises （MNE） brings into play the ownership advantage while the governments of emerging markets bring into play the location advantage （Dunning 2000）. For most part, the economics and the strategy of international business focused on the MNE while economic geography from Koopman （1957）

3、to Krugman （1991） and later （as well as development economics） have focused on the country in which the investment takes place. This paper brings together international business development economics and international trade to gain better insights into an important and fascinating phenomenon in the

4、arena of international business the recent growth of private equity investments in emerging markets. The tremendous growth of private equity investments in emerging markets is evident from the data presented in Table 1. The total went up almost ten times, from about $3.5B to more than $33B in the pe

5、riod 2003-2006. Emerging Asia led the emerging markets with $19.4B raised in 2006 by 93 funds; about a third of the money that was raised by these funds went to China and India. The main argument that is presented and discussed in this paper is that private equity investments in emerging markets is

6、another expression of foreign direct investment （FDI） where firms from the developed countries export specific factors of production （their ownership advantage） to small countries and emerging markets （new locations） as a way to generate value to all stakeholders. The firms in the developed countrie

7、s in this case are specialized financial institutions （private equity funds） （Yoshikawa et al. 2006） and the factor of production that they export is high-risk sector specific capital. We dubbed this form of FDI as financial foreign direct investment （FFDI）, but the process and the rational are the

8、same as in the classical FDI analysis. FFDI （synonymousbut not restricted tofor private equity throughout this paper） is a subset of FDI that is solely devotedas the name impliesfor investments in private firms in purpose of generating high return on- investment over a relatively short period （5-7 y

9、ears）. The term “short” is relative and in comparison with the typical investment periods of the investors of private equity funds （e.g., pension funds, endowment funds and the like）. At the extreme, i.e., in venture capital investments, investors take into account upfront that some of their investm

10、ents will be written off at the prospects that few will generate return that will more than compensate those sunk investments （hence the “high-risk” referral）. Sector specific capital is a general phenomenon. In many industries such investment is more than mere financial investment and is augmented

11、by specific information that the investor may posses in the form of managerial expertise, deal structuring specialty, networking capabilities and the like. In the case of the high-risk capital industry there is a need to bridge the gap between the risk perception of the investment project by the ent

12、repreneurs or the “insiders” and the investors （most often risk-averse investors）, the “outsiders”. This is accomplished by a combination of validation processes and screening mechanisms that are engaged by the private equity funds. In this regard they act as financial and risk intermediaries （Coval

13、/Thakor 2005, provide an analytical framework for this approach）. The value of the general partners of private equity funds depends on the quality of the risk intermediation that they perform for their investors. This makes them credible and reliable processors of information.Table 1: Emerging Marke

14、ts Private Equity Funds Raising, 2003-2006 （US$ Millions）EmergingAsiaCEERussiaLathamSub-SaharaAfricaMiddle-East AfricaMultipleRegionsTotal20032,200406417NA3501163,48920042,8001,7777145456186,454200515,4462,7111,2727911,9153,63025,765200619,3863,2722,6562,3532,9462,58033,193Source: EMPEA （Emerging Ma

15、rkets Private Equity Association） 2007. The discussion and the analysis presented in this paper draw on three different bodies of literature; the literature of finance and growth from development economics, （Levine 1997, 2004）, the literature on comparative advantage in the discussion of patterns of trade （Deardorff 2004） and the literature of imperfect contracts in micro economics and in financial economics （Hart 2001, Zingales 2000）. Financial foreign direct investment as practi