Causes and effects of FDI by the Norwegian maritime industry

Abstract

In this paper we analyse foreign direct investments (FDI) in Asia by the Norwegian maritime industry. We focus on three topics: - Why do Norwegian maritime companies invest abroad? - What are the effects of maritime foreign direct investments on the Norwegian maritime milieu? - What are the effects of these investments on the host country? By analysing specific Norwegian maritime companies we find that the FDIs partly have been induced by the instability of the Norwegian policy towards this sector. Several firms also point at the importance of being closer to the Asian market as a significant reason for FDI, and Norwegian ship equipment industry tends to follow the shipping companies abroad. The domestic effects of FDI are uncertain, and are likely to depend on the motivation behind the investments. Finally, using Singapore as an example, we argue that the host country effects of FDI tend to be positive.