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Articles 1 - 7 of 7
Full-Text Articles in International Economics
International Capital Flows And Aggregate Output, Jurgen Von Hagen, Haiping Zhang
International Capital Flows And Aggregate Output, Jurgen Von Hagen, Haiping Zhang
Research Collection School Of Economics
We develop a tractable multi-country overlapping-generations model and show that cross-country differences in financial development explain three recent empirical patterns of international capital flows. Domestic financial frictions in our model distort interest rates and aggregate output in the less financially developed countries. International capital flows help ameliorate the two distortions. International flows of financial capital and foreign direct investment affect aggregate output in each country directly through affecting the size of aggregate investment. In addition, they affect aggregate output indirectly through affecting the composition of aggregate investment and the size of aggregate savings. Under certain conditions, the indirect effects may …
Financial Development And The Patterns Of International Capital Flows, Jurgen Von Hagen, Haiping Zhang
Financial Development And The Patterns Of International Capital Flows, Jurgen Von Hagen, Haiping Zhang
Research Collection School Of Economics
We develop a tractable, two-country, overlapping-generations model and show that cross-country differences in financial development can explain three recent empirical patterns of international capital flows: Financial capital flows from relatively poor to relatively rich countries while foreign direct investment flows in the opposite direction; net capital flows go from poor to rich countries; despite its negative net international investment position, the US receives a positive net international investment income. We also explore the welfare and distributional effects of international capital flows and show that the direction of capital flows may change along the convergence process of a developing country. Matsuyama …
International Capital Flows And World Output Gains, Jurgen Von Hagen, Haiping Zhang
International Capital Flows And World Output Gains, Jurgen Von Hagen, Haiping Zhang
Research Collection School Of Economics
We develop a two-country overlapping-generations model with domestic financial frictions and show that cross-country differences in financial development explain three recent patterns of international capital flows. In our model, domestic financial frictions distort the interest rates and production efficiency in the less financially developed country. Capital flows not only lead to cross-country resource reallocation, but also trigger within-country resource reallocation among firms. From the efficiency perspective, full capital mobility raises the world output higher than under international financial autarky. If the mobility of either financial capital or foreign direct investment is restricted, the world output may be lower.
How Does Foreign Direct Investment Affect Growth In Developing Countries? An Empirical Investigation, E. M. Ekanayake, John R. Ledgerwood
How Does Foreign Direct Investment Affect Growth In Developing Countries? An Empirical Investigation, E. M. Ekanayake, John R. Ledgerwood
Publications
This paper analyzes the effects of foreign direct investment on the economic growth of developing countries. The study uses annual data on a group of 85 developing countries covering Asia, Africa, and Latin America and the Caribbean for the period 1980-2007. We explore the hypothesis that foreign direct investment can promote growth in developing countries. We test this hypothesis using panel data series for foreign direct investment, while accounting for regional differences in Asian, African, Latin American, and the Caribbean countries as well as the differences in income levels. While the findings of previous studies are generally mixed, our results …
The Importance Of Bits For Foreign Direct Investment And Political Risk Insurance: Revisiting The Evidence, Lauge Skovgaard Poulsen
The Importance Of Bits For Foreign Direct Investment And Political Risk Insurance: Revisiting The Evidence, Lauge Skovgaard Poulsen
Lauge N. Skovgaard Poulsen
Bilateral investment treaties (BITs) are typically presented as vital risk-mitigating instruments providing foreign investors with “credible commitments” that their assets will not be expropriated, discriminated against, or otherwise maltreated post-establishment. Accordingly, developing countries wanting to attract foreign investment should become more attractive destinations for multinationals when signing the treaties. A great number of studies and surveys indicate, however, that the vast majority of multinationals do not appear to take BITs into account when determining where - and how much - to invest abroad. Apart from reviewing such evidence, this paper discusses the feedback from a series of interviews. Firstly, BIT-negotiators …
The Corporate Income Tax And The Competitiveness Of U.S. Industries, Michael S. Knoll
The Corporate Income Tax And The Competitiveness Of U.S. Industries, Michael S. Knoll
All Faculty Scholarship
Hit hard by the financial crisis and recession, U.S. auto producers are seeking a massive bailout from the U.S. Congress. Many reasons are given for the U.S. auto industry’s lack of competitiveness including the U.S. corporate income tax. Although it is regularly asserted that there is a direct connection between the corporate income tax and competitiveness, what that connection is has not been carefully spelled out. In this essay, I describe how the corporate income tax directly harms the competitiveness of U.S. industries. I show that the mechanism differs depending upon whether the U.S. industry is defined as the global …
The Investigation Of Foreign Direct Investment Patterns In Russia, Tamilla Curtis, Tom Griffin, Lucyna Kornecki
The Investigation Of Foreign Direct Investment Patterns In Russia, Tamilla Curtis, Tom Griffin, Lucyna Kornecki
Dr. Tamilla Curtis
No abstract provided.