Shipowning and Foreign Direct Investment

The working paper discusses some aspects of the Foreign Direct Investment (FDI) of Norwegian shipowning companies. Initially, some aspects of the legal environment and Norwegian shipping FDI are surveyed. This is followed by an analysis of the particular difficulties encountered when analysing FDI in the shipping sector. We argue that the definition of FDI should vary depending on the purpose of the analysis. In some contexts, e.g. when analysing the motivation for FDI, the focus may be on the registry of ships under foreign flags or on companies incorporated in tax havens. Indeed, a large degree of Norwegian shipping FDI seems to be explained by these aspects. However, for a broader analysis of the FDI of Norwegian shipowning companies, its motivation and its home and host country effects, we suggest that the analysis should focus on land-based activities, rather than legal linkages. The success of shipowning companies can then be explained by intangible factors, the utilisation of which will be decisive for the company’s ability to compete and survive in an internationally competitive environment.