The article analyzes US direct investment in the ASEAN countries and their main areas of application, their distribution across the association's member countries, the impact of the global crisis on capital inflows, and the role of the US in the inflow of foreign direct investment to ASEAN.

Keywords: United States, ASEAN, foreign direct investment (FDI), inflows of FDI by ASEAN member countries, global crisis.

The beginning of the twenty-first century is marked by new trends in economic cooperation between the United States and the ASEAN countries** both in the field of cooperation at the association level as a whole, and in the development of investment and industrial relations at the level of bilateral relations. The current stage of economic relations between the United States and the ASEAN countries is characterized by their increasing importance both for the parties involved and for the global economy. US direct investment in ASEAN in 2011 reached almost $ 160 billion*** (third place after the EU and Japan among the leading foreign investors in ASEAN) and has a multifaceted impact on the development of the national economies of the association countries, on changing the structure of their production and foreign trade, as well as on deepening industrial cooperation in the region and abroad. outside of it [1].

Building relations with the Association countries is becoming increasingly important for the United States, including through the conclusion of ASEAN - China, ASEAN - South Korea, ASEAN - Japan, ASEAN - India, ASEAN - Australia and New Zealand free trade agreements. The expansion of investment, industrial and technological relations between the United States and ASEAN, and the deepening of cooperation in the fields of energy, infrastructure, health, education, the use of information and communication technologies, disaster relief, protection and rational use of natural resources, and other areas are taking place in the context of globalization and regional integration processes, which are multifaceted

* Lyudmila Lebedeva-Doctor of Economics, Head of the Center for Socio-Economic Research and Projects ISKRAN. E-mail: liudran@mail.ru USOLTSEV Alexander Vadimovich-Candidate of Economic Sciences. E-mail: luinic@yandex.ru

** ASEAN was formed in 1967 and included Indonesia, Malaysia, Singapore, Thailand, and the Philippines; Brunei in 1984, Vietnam in 1995, Laos in 1997, and Myanmar in 1999. Currently, the association unites countries with a combined population of about 600 million people and a GDP of about 2.9 trillion. dollars.

*** Dollar = US dollar.

influencing the scale, forms and mechanisms of economic relations of the subjects involved in this activity. Along with the continued significant influence of the United States on the development of the Association's national economies, all these changes are accompanied by an increase in the economic interdependence of the parties involved.

At the end of the 20th and beginning of the 21st century, various measures were taken in the ASEAN countries to liberalize markets for foreign goods and investment, develop infrastructure and promote industrial research and development, which, in turn, also increased the investment attractiveness of the region.

But the global financial and economic crisis that began in 2008 - 2009 has contributed to the manifestation of a number of trends that change the balance of power in the region and increase the redistribution of investment flows. The acceleration in the growth of US direct investment in ASEAN countries during these years has led to an increase in their share in the total inflow of foreign direct investment to the association to 11.3% (in 2010), compared with an average annual rate of 8.8% in 2003-2008. In 2011, total US direct investment in ASEAN significantly exceeded US direct investment in the leading recipient countries of US capital: compared to Germany-1.6 times, with Mexico-1.8 times, with China-3 times, with India-6.5 times [6].

Dynamics of US direct investment in ASEAN countries

The volume of US direct investment in ASEAN countries increased more rapidly in the post-crisis period than in other countries. At the same time, there was a steady increase in the share of ASEAN countries in US direct investment in the Asia-Pacific region. This increased attraction of investment to the Association's member countries was facilitated by the continued high dynamics of their economic development relative to other countries in the post-crisis period.

The current economic situation and the forecast of its development are characterized by a steady trend of redistribution of economic power in the global economy, the emergence of new players on a global scale and their intensive involvement in the international division of labor, while the potentials of leaders differ significantly in certain financial, economic, and social parameters.

In terms of GDP, one of the key and most frequently used national indicators , the United States is a leader. In the first decade of the twenty-first century, there was a noticeable strengthening of ASEAN's position. In the period 2005-2012. The total GDP of the ASEAN countries increased 2.5 times and reached 2.5 trillion rubles. USD (see Table 1).

As developing countries integrate into the global economic system, their scientific and technical potential continues to grow. The recovery of developing countries ' economies was much faster than that of the US, EU or Japan. At the same time, the Governments of developing countries have implemented policies aimed at increasing the innovative activity of the population.-

Table 1

Dynamics of GDP of the ASEAN member countries, mln USD

http://unctadstat.unctad.org/

economic development, infrastructure development and support for education, and attracting investment in relevant high-tech sectors.

After a slowdown in 2009, the GDP growth of the ASEAN countries as a whole increased by 8% in 2010, with some deceleration in subsequent years (see Table 2). Even in 2009 - against the background of a decline in Brunei, Malaysia, Singapore, and Thailand - other ASEAN countries experienced GDP growth.

In 2011-2017, the fastest economic growth is expected in Laos (7.4%), Cambodia (6.9%), Indonesia (6.4%), Malaysia, Thailand, the Philippines - 5.5%, Singapore - 3.1% [2]. In the direction of further development of foreign economic relations of the association countries, integration processes in the Asia-Pacific region also worked, the core of which was ASEAN, which contributed not only to the development of interaction between member countries, but also to a more active involvement of these countries in the international division of labor.

Over the past decade, the Asia-Pacific region has been undergoing active processes of deepening integration and involving countries and territories in the international division of labor, as well as increasing the importance of external factors in their economic development and the formation of export potential. Conclusion of free trade agreements between ASEAN and its member countries: China, Japan, the Republic of Korea, India, Australia and New Zealand became a significant factor in influencing trade and investment flows between the association countries and their partners.

An important step in increasing the investment attractiveness of ASEAN was the signing in October 1998 of the framework agreement on the creation of an investment zone covering the territories of all member States of the association, providing investors with national treatment and tax incentives, lifting restrictions on the share of foreign capital, temporary exemption from income tax, duty-free import of basic equipment, and simplification of customs procedures procedures.

Table 2

ASEAN countries ' GDP growth rate, 2007-2012, %

http://unctadstat.unctad.org/

Table 3

US direct investment in ASEAN, USD million

U.S. Direct Investment Abroad. Survey of Current Business, September 2012

In accordance with the Framework Agreement on the Investment Zone, the association's participants committed themselves to gradually open up the main sectors of the national industry to investors from the association's member states, and in the future - until 2020 - to external investors.

The parties to the agreement also pledged to gradually grant national treatment to all foreign investors, and countries that invest in the manufacturing industry were granted national treatment immediately.

At the meeting of the ASEAN Investment Area Council (March 1999), it was decided to extend the national treatment to services investment that is directly related to manufacturing.

The package of tax benefits for investors includes temporary exemption from income tax, duty-free import of basic equipment, simplification of customs procedures, the right to hire foreign personnel, a minimum period of lease of land for industrial purposes for 30 years, and other measures.

The steps taken to liberalize markets for foreign goods and investment, develop infrastructure, and encourage industrial research and development have contributed to the influx of direct investment in these countries.

Since the second half of the 1990s, there has been a steady increase in US direct investment in ASEAN countries, with a relatively small decline in 2009 and an increase of $ 16.5 billion over the pre-crisis level in 2010 (see Table 3).

The acceleration in the growth of US direct investment in ASEAN countries during these years has led to the fact that in 2010, they accounted for 11.37% of the total inflow of foreign direct investment to these countries, compared with the same indicator of 8.8% in 2003-2008 [1], which contributed to the strengthening of industrial, technological and trade ties between the United States and the countries of the association. By the beginning of the second decade, US TNCs and their affiliates accounted for 30% of the total US trade with the association countries.

Distribution by ASEAN member countries

U.S. direct investment in the first decade of the twenty-first century was concentrated in five countries - Singapore, Indonesia, Malaysia, Thailand, and the Philippines. It is only since the second half of this decade that there has been a slight increase in direct investment in Brunei and a sharp increase in Vietnam. U.S. direct investment in the Vietnamese economy continued to grow even during the global crisis, and increased by 60% between 2008 and 2011.

Singapore accounted for 72% of such investments in 2011 (Figure 1), while ASEAN accounted for 3.84% of US direct investment worldwide.

If we consider revenues from other ASEAN member countries, they accounted for 16.1% in 2010, while external investors accounted for 11.3% in the US, 11% in Japan, 4.9% in the Republic of Korea, and 3.8% in China; 22.4% of such investments came from the EU [3]. The inflow of Russian direct investment to ASEAN accounted for 0.1% of the total inflow of such investments to the Association countries.

Singapore is the leader in attracting American investment, accounting for 72.8% of its inflows to ASEAN in 2011. 1). The volume of accumulated US direct investment in Singapore is 9 times higher than in Malaysia and 10 times higher than in Thailand or Indonesia.

In the middle of the first decade of the twenty-first century, Malaysia surpassed Indonesia to become the second largest direct US investment destination in the ASEAN countries. As of 2011, these investments amounted to $ 13.9 billion, of which 45% is accounted for in the manufacturing industry.

An important role in the development of the manufacturing industry in Malaysia was played by the long-term development plan of the country 1991-2000. Thanks to him, the manufacturing sector has acquired a leading role in the formation of eco-

Figure 1. Distribution of US direct investment in ASEAN countries, 2011 (ASEAN - 100%)

U.S. Direct Investment Abroad. Survey of Current Business, September 2012.

economic growth, and private investors began to receive all possible assistance. The course of industrial policy was aimed at attracting foreign investment in order to change the Malaysian economy, previously based on agriculture and mining, in the direction of accelerating the development of manufacturing industries.

One of the main areas of production that has been developed in Malaysia, including thanks to American capital, has become electronics. In 2011, manufacturing accounted for 46% of U.S. direct investment in Malaysia, of which two-thirds were concentrated in the electronics industry. It should also be noted that in the Asia-Pacific region, US direct investment in the electronics industry in Malaysia is second only to US investment in the electronics industry in Singapore ($14.8 billion) and China ($5.7 billion).

In 2011, Indonesia ranked third in terms of U.S. direct investment in ASEAN countries ($11.6 billion). Most of them (70%) are concentrated in the extractive industry.

In the 1980s and early 1990s, Indonesia was the second largest investment destination for American private capital after Singapore. However, in the following years, its position began to weaken. Back in 2000, Indonesia ranked second in terms of US direct investment in the ASEAN countries, in subsequent years it lost this place to Malaysia, and now Thailand is very close to it ($11.3 billion in 2011).

One of the main goals of the policy of attracting foreign investment to Indonesia remains to encourage their inflow into the manufacturing industry, including the production of high-tech products focused on export.

The most attractive areas of investment of American capital in the Indonesian manufacturing industry are the chemical industry, electronics, instrument making, and the production of equipment for

environmental protection, production of aircraft spare parts, equipment for oil and gas production.

In the first decade of the 21st century, American companies faced growing competition from Japan and other countries seeking to maintain their leading positions in the region.

Thailand ranked fourth in terms of U.S. direct investment in ASEAN in 2011 ($11.3 billion). The Thai Government, aware of the importance of foreign investment in the functioning of the national economy, has always supported favorable conditions for foreign investors.

In accordance with the National Economic and Social Development Plan, the Government of Thailand pursues a policy of economic liberalization to promote both domestic and foreign businesses, as well as further attract foreign capital, performing the functions of supporting, promoting and controlling foreign investment. Special attention is paid to encouraging investors in priority industries and high-tech industries.

Between 2000 and 2011, the volume of investment almost doubled, with 56% concentrated in the manufacturing industry. Ranked fourth in terms of U.S. direct investment, the country ranked second after Singapore in terms of foreign direct investment in manufacturing.

Foreign direct investment inflows to ASEAN Figure 2. by economic sector, 2010

ASEAN Investment Statistics Database, September 2011

Thus, the distribution of US direct investment across ASEAN countries remains highly differentiated.

The first group of countries with the largest direct US investment is Indonesia, Malaysia, Singapore and Thailand.

The second group includes countries with a high potential for investment growth from the United States: the Philippines, Vietnam.

The third group includes countries with weak investment inflows: Brunei and Cambodia.

The fourth group (Laos, Myanmar) consists of countries where increasing US direct investment remains problematic.

By industry, there have also been changes in the distribution of US direct investment in ASEAN. In the 80s of the last century, the activity of American business in the association countries was mainly concentrated in the agricultural sector, oil refining, and then in the manufacturing industry, which was explained by political and economic instability, lack of a favorable investment climate, outdated production equipment, lack of a legislative framework, and a number of other factors [2]. Since the end of the 90s of the last century, the activities of American companies have been actively covering the production of goods and services, and in the first decade of the XXI century, the field of R & D [3]. By the beginning of the second decade, the total volume of US direct investment in the manufacturing industry in the Association countries was more than three times higher than in the extractive industry [5].

The sectoral distribution of US direct investment in ASEAN generally corresponds to the directions of foreign investment inflows to the association countries by economic sector. In 2011, 65% of total foreign direct investment inflows to ASEAN countries were in the service sector, 28% in manufacturing, and 6% in raw materials (Figure 2).

The dynamics of the sectoral structure of US direct investment in ASEAN countries indicates a steady increase in the share of manufacturing industry in their volume, which in 2011 averaged 24% for the main host countries: Singapore, Thailand, Malaysia, and the Philippines. At the same time, a high degree of unevenness in the distribution of inflows of direct US investment in the manufacturing industry remains even among the leading recipient countries. As of 2011, U.S. direct investment in Singapore's manufacturing industry was twice as large as that in Thailand and Malaysia, and 5 times as large as that in the Philippines.

Thus, if in the mid-80s of the XX century, foreign direct investment was mainly concentrated in agriculture and the oil and gas sector, today a significant share of investment is directed to the manufacturing industry. Since the end of the 90s of the last century, the activities of American companies have been actively covering the production of goods and services, and in the first decade of the XXI century, the field of R & D.

The importance of US TNCs ' activities in the ASEAN countries

The activities of American TNCs in ASEAN are characterized, first of all, by the fact that they are highly differentiated by country: they are most intensively conducted in Indonesia, Malaysia, Singapore, and Thailand.

intensive, but with great growth potential, in the Philippines and Vietnam; more "restrained" - in Brunei, Cambodia, Laos," weak " - in Myanmar.

The sales volume of branches of American TNCs in the five ASEAN countries in 2010 was about 8% of the global sales volume of American TNCs, in the same countries they received about 5% of the global profit [6].

The activities of American companies in the ASEAN member countries have a multifaceted impact on economic development and interaction with other countries, including the growth of the manufacturing industry, the influx of new technologies, methods of organizing production, changes in the structure of employment, and foreign trade flows.

Branches located in Singapore, Thailand, Malaysia, Indonesia and the Philippines (ASEAN-5) account for a significant portion of sales, profits, exports and imports of branches of American companies operating in the Asia-Pacific region. The sales volume of branches of American TNCs in the ASEAN-5 countries in 2010 amounted to 29% of sales of all branches of American TNCs in the Asia-Pacific region [6].

The activities of American subsidiaries in ASEAN countries have an increasing impact on their trade with the United States. Thus, in 2010, the export of goods by American TNCs to their branches located in ASEAN-5 accounted for 29% of all commodity exports from the United States to these countries, and imports, respectively, for 25%.

One of the most important trends of the last two decades is the acceleration of the growth of R & D costs of American TNCs and their foreign affiliates.

In the 1990s, the ongoing policy of market liberalization contributed to the activation of interconnections in the global economy, including in the field of science and technology, which was accompanied by significant structural changes. First of all, this applies to a qualitatively new role in the global economy of developing countries, which consider science and new technologies as key factors of economic growth and aim to increase the share of knowledge-intensive industries in the economy. To achieve this goal, steps are being taken to liberalize markets for foreign goods and investment, develop infrastructure and encourage industrial research and development, and improve higher education systems. In their relations with multinational companies, in exchange for providing market access, host countries imposed a number of conditions that, in addition to gaining access to technology, contributed to the growth of the scientific and technological potential of these countries.

In 1996-2008, research and development spending in developing countries, including some ASEAN countries and their key partners (China and South Korea), outpaced that in developed economies. Average annual spending growth rates in the US, EU and Japan were in the range of 5.4% - 5.8%, while in Singapore and Taiwan-9.5% - 10.5%, and in South Korea-up to 12%. Higher growth rates in research and development spending in Asian economies have affected the change in the global structure of investment in research, and the share of the Asian region has increased from 24% to 35% [4].

Table 4

Activities of subsidiaries of US TNCs in ASEAN countries, 2010, USD million

U.S. Multinational companies / Survey of Current Business, November 2012

Between 1998 and 2008, the share of R & D expenditures of US TNCs carried out in Asian countries (including ASEAN countries) increased from 11% to 20% of their global expenditures. The largest increases in such spending were observed in China, the Republic of Korea, Taiwan and Singapore. Over the past decade, R & D spending by U.S. subsidiaries in Malaysia and Thailand has increased. In total, about $ 40 billion was spent on R & D by foreign branches of American TNCs in 2010, of which 3.3% was spent on their branches in ASEAN countries.

Data on the value added generated by subsidiaries of US TNCs in ASEAN countries show significant differences in their activities by country (see Table 4). In Singapore, 37% of US direct investment is related to industrial production. In Indonesia, US TNCs received the largest income in the mineral development and industrial production sectors. In addition to the oil and gas sector, the development of such valuable natural resources as coal, tin, nickel, copper, etc. is of considerable interest in Indonesia. American companies in Indonesia have mastered such sectors as the chemical industry, the production of environmental protection equipment, drinking water treatment plants, the production of telecommunications equipment, and computers. In Malaysia, American companies are engaged in the production of electronics, textiles, oil production and processing of petroleum products, and wood processing.

Electronics has become one of the main areas of production that has been developed in Malaysia primarily due to American capital. In 2011, manufacturing accounted for 46% of U.S. direct investment in Malaysia, of which two-thirds were concentrated in the electronics industry. It should also be noted that in the Asia-Pacific region, US direct investment in the electronics industry in Malaysia is second only to its investment in the electronics industry in Singapore and China.

The inflow of US capital investment contributes to the development of not only imports, but also exports of recipient countries.

In 2010, the export of goods from the United States to the branches of multinational corporations of the leading "five" ASEAN countries amounted to $ 21.9 billion, while the import of goods from branches in the United States - $ 29.4 billion [6].

Foreign direct investment in ASEAN reached $ 75.8 billion in 2011, compared to $ 37.8 billion in 2009. However, relative to GDP, the volume of these investments remains at 4.2%. Foreign direct investment inflows in 2011 exceeded the 2009 inflows in almost all ASEAN member countries, with the exception of the Philippines.

During the post-crisis recovery period, ASEAN countries have taken additional measures to liberalize and simplify investment procedures in order to attract capital, including in banking services in Malaysia and in the aviation industry in the Philippines.

Despite efforts to liberalize trade and investment in the region, as well as to encourage American companies to expand investment in ASEAN countries, the inflow of US direct investment to the association countries amounted to about 0.4% of ASEAN GDP in 2011.

In 2011, there was also an increase in investment within ASEAN itself. In the total volume of foreign direct investment inflows, the share of intra-regional flows increased in 2011 compared to 2009, but remained below the level of 2008, when the share of ASEAN was over 20%. The leading positions in terms of foreign direct investment in ASEAN are maintained by the European Union, the United States, and Japan - in 2011 they accounted for about 45% of the total inflow of such investments to the association countries. However, in recent years, their share has slightly decreased, primarily due to the more active behavior of investors from China, South Korea, and Australia.

List of literature

1. AEM-USTR Consultations. Joint Statement. Cambodia. 30.08.2012.

2. ASEAN Economies. OECD. November 2012.

3. ASEAN Investment statistics Database. September 2011.

4. Science and Engineering Indicators: 2012

5. U.S. Direct Investment Abroad // Survey of Current Business. September 2012.

6. U.S. Multinational Companies // Survey of Current Business. November 2012.

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