Social and Behavioral Sciences Commons^™

Cross-Border Technology Investments In Recession, Juliana Yu Sun, Huanhuan Zheng

Research Collection School Of Economics

Utilizing industry-level foreign direct investment (FDI) from 72 source markets to 122 destination markets between 2003 to 2018, we evaluate how cross-border technology investments respond to economic recessions. We find that FDI embedded with intensive research and development (R&D) drops when the destination market is in a recession and the source market is in a normal state and recovers to the pre-recession levels when both destination and source markets are in recession. However, there is little evidence that recessions affect cross-border investments in other aspects of technology measured by the penetration of robots, intellectual property products and information and communications …

Macroeconomic Drivers, Governance, And Foreign Direct Investment In Central And Eastern European Countries (Ceecs), Parfait Bihkongnyuy Beri, Gabriel Mhonyera

Economic and Business Review

Background and objective: The transition to market-oriented economies in CEECs entailed significant structural economic and institutional reforms. Over the past years, studies have investigated how these reforms affected foreign direct investment (FDI) inflows. However, the evidence remains debatable and varies across countries. This study provides new insights by considering the impact of macroeconomic factors, governance, and the moderating effect of governance on the macroeconomic drivers–FDI nexus.

Methods: A panel of 12 countries from 1991 to 2020 are analysed within the framework of conventional methods and Seemingly Unrelated Regression (SUR).

Results: Results robustly suggest that gross capital formation, macroeconomic stability, and …

Three Essays On Macroeconomics And Development, Guilherme Klein Martins

Doctoral Dissertations

This dissertation is a collection of essays that relate, in different forms, macroeconomic policies to economic development. Essay 1 provides evidence that austerity shocks have longrun negative effects on GDP. Besides addressing the important gap in the growing fiscal research regarding the short time horizon of the estimations, the paper analyzes two other important assumptions made in the literature regarding the (i) symmetry of episodes of fiscal expansion and contraction and (ii) uniformity of fiscal multipliers for different sizes of shocks. We use narrative fiscal shocks and propensity score reweighting in a local projections setup to account for the potential …

Are The Informal Economy And Cryptocurrency Substitutes Or Complements?, Rajeev K. Goel, Ummad Mazhar

Faculty Publications – Economics

This research considers a new dimension of the effects of the underground sector by examining the spillovers on cryptocurrency holdings. Cryptocurrencies offer a relatively greater ability to dodge taxes and ensure the anonymity of holders, providing attractive avenues for underground operators to stash their informal-sector earnings. Our results, based on data from more than 50 nations, show that a greater prevalence of the underground economy in a nation is indeed associated with greater cryptocurrency holdings. This result holds across an alternative measure of the shadow economy, and when the bi-directional causality between the shadow economy and cryptocurrency holdings is considered. …

The Effects Of Corporate Tax Rates And Foreign Investment On Unemployment In Tax Haven Nations, Timothy M. Campbell

Honors Theses and Capstones

Corporate tax haven nations are infamous for offering corporations lower tax rates so that they can operate at lower costs and increase their profits. How the tax policies of tax havens impact the citizens of those nations is seldom discussed. This paper aims to determine if the policies undertaken by tax havens to increase foreign investment benefit the welfare of the citizens of those nations in terms of employment rate. Using a small preliminary sample of havens and non-havens, an inverse relationship is observed between corporate tax rate and foreign direct investment, and corporate tax rate and employment. A larger …

Capital Nationality And Economic Development, Guilherme Klein Martins

Economics Department Working Paper Series

This paper reviews different literature strands and performs an empirical test to evaluate how capital ownership, particularly its nationality, might affect long-run economic develop- ment. Our results indicate that low and middle-income countries with larger foreign capital stock in 1980 had lower economic growth over the next 39 years. The estimations also indi- cate that these economies developed a less specialized export basket, which became relatively more concentrated in low-tech goods. The results are inverted to high-income economies, for which the effects are positive on GDP growth and export specialization and complexi- fication. The results are in line with the …

The Effect Of Foreign Direct Investment On Colombia’S Economic Growth And The Role Of Human Capital: Does Foreign Direct Investment Foster Growth?, Jean K. Plantin

Master's Theses

Abstract: Since the pioneering work of John H. Dunning on the role of foreign direct investment (FDI) in the economic growth of the United Kingdom, many experts have debated the growth effect of FDI in an economy. This study investigated the impact of FDI on Colombia’s economic growth from 1990 to 2019. Moreover, it explored whether the Colombian economy has benefited from positive spillover from FDIs. Additionally, the paper examined how the stock level of human capital conditioned the effect of FDI on GDP per capita growth. To this end, the analysis separated tertiary enrollments from the human capital …

Oil Price And Foreign Direct Investment In Nigeria: New Evidence From Structural Breaks And A Nonlinear Analysis, Shehu Muhammad

Bullion

The study employed Nn-Linear and Auto-Regressive Distributed Lag (NARDL) method to analyse the link between oil price and foreign direct investment (FDI) using annual data from (1970 to 2018 Bai-Perman (2003) test revealed two structural break periods (1989 and 1995 showing a long-run relationship between oil price and FDI in Nigeria. The findings after NARDL estimation (short and long runs), showed that oil price, exchange rate and trade, negatively and insignificantly influenced FDI while GDP positively impacted on FDI, through insignificant too. The study concluded that though these variables slow down FDI efforts should be geared towards channeling oil funds …

Buying-Up Europe No More? How The European Union Has Responded To The Challenges Of Chinese Foreign Direct Investment, Ethan Kable

Claremont-UC Undergraduate Research Conference on the European Union

towards Chinese outward foreign direct investment (OFDI) has evolved over the past decade. I contend that the EU was quite receptive to Chinese OFDI at the beginning of the decade, due to both ideological leanings and the economic context of a post-crisis Europe. I then illustrate how the EU slowly adopted a more guarded and critical approach towards Chinese OFDI. This paper will focus specifically on four key issues surrounding Chinese OFDI policy: national security, technology transfers and IP theft, state support for Chinese firms, and market access, ultimately arguing that bilateral investment treaty (BIT) negotiations and the new EU …

Cross-National Variation In Women’S Rights: Europe And Civil War, Nourah Shuaibi

Doctoral Dissertations

This dissertation evaluates the impact of Foreign Direct Investment (FDI) on Women’s Social, Economic and Political rights in post-Conflict countries. In order to evaluate the relationship with sound causal logic, I set out to study multiple relationships to understand the impact of the variables in question. Looking at the nature of the relationship required an evaluation in 3 ways, which culminated in the writing of 4 separate chapters. Chapter 2 demonstrates the importance of understanding Women’s Rights and their role in economic development and peace building. This places women’s rights in context to set the scene for the rest of …

Covid-19 Effect On Fdi Motivation And Their Impact On Service Sector: Case Of Georgia, Vakhtang Charaia, Mariam Lashkhi

University of South Florida (USF) M3 Publishing

Based on the Scott-Kennel’s model of local industry upgrade through foreign direct investments, this paper analyses if investments are always positively benefiting the host economy, or if they are not promoting local/host economies at all, or to which exact level. This paper is focused on service sector oriented investments and answers the questions important to analyse for the successful investment policy creation, which could benefit both the local economy and foreign investors. In other words, only aggregated per year foreign investment numbers are not enough for the comprehensive picture creation and in some cases could even suggest incorrect strategic decisions. …

Economic Cooperation Between Central Caucasus, China, And Eu, Under Covid-19 Challenges, Vakhtang Charaia, Mariam Lashkhi

University of South Florida (USF) M3 Publishing

Study analyses the China’s Belt and Road Initiative perspectives for EU and Central Caucasus countries of Georgia, Armenia and Azerbaijan, with the special focus on covid-19 global pandemic reality. Trade, investments and transit is considered as main factors of the given paper. At the same time, global competition for leadership, open and hidden trade and investment wars are taken into account. Study also suggest different alternative ways of including Central Caucasian states into the project as a corridor for China – EU connection. Coronomic challenges are considered as a new wave of challenge and at the same time as a …

The Impact Of Remittances On Total Factor Productivity In Pakistan, Muhammad Shafiq Ur Rehman, Dr. Muhammad Nishat

CBER Conference

No abstract provided.

Does Foreign Direct Investment Matter For Industrialisation In Nigeria?, Obianuju Ogochukwu Nnadozie, Lotanna Ernest Emediegwu, Anthony Monye-Emina

Zambia Social Science Journal

This paper employs cointegration and error correction techniques to provide empirical evidence on the dynamic relationship between foreign direct investment (FDI) and industrialisation in Nigeria for the period 1981-2015. Our findings show that FDI does not have a significant effect on industrialisation in Nigeria either in the short run or the long run. Also, the empirical results reveal that trade significantly harms industrialisation in Nigeria both in the short run and the long run. Our empirical results are, however, not surprising given that FDI inflows into Nigeria have largely been resource-seeking, that is, mainly targeted at the oil sector with …

Apakah Kualitas Institusi Berpengaruh Pada Arus Masuk Fdi Di Asean?, Ali Akbar Septiantoro, Heni Hasanah, Muhammad Findi Alexandi, Sri Retno Wahyu Nugraheni

Jurnal Ekonomi dan Pembangunan Indonesia

This paper examines the impact of institutional quality (government effectiveness index, voice and accountability index, and political stability) and economic variables (Gross Domestic Product [GDP], inflation, trade openness, and gross fixed capital formation) on Foreign Direct Investment (FDI) inflows in ASEAN 2012–2016 by using panel data analysis. The obtained results indicate that economics variables have a greater impact on FDI than political stability indicator. Our findings also suggest that insignificant effect of democracy and institutional quality indicator on FDI caused by the high level of corruption in ASEAN which maybe has a crowding out effect to level of democracy and …

Cross-Border Technology Investments In Recessions, Juliana Yu Sun, Huanhuan Zheng

Research Collection School Of Economics

Utilizing industry-level foreign direct investment (FDI) from 72 source markets to 122 destination markets between 2003 to 2018, we apply a differences-in-differences approach to evaluate the response of technology FDI to recessions. We find that research and development (R&D) intensive FDI drops when the destination market is in recession and the source market is in a normal state, and recovers to the pre-recession levels when both destination and source markets are in recession. The result is particularly pronounced in deep and long recessions, during the propagation stage of recessions, and in destination markets with stronger intellectual property protection, looser FDI …

Foreign Direct Investment And Industrial Agglomeration: Evidence From China, Wen-Tai Hsu, Yi Lu, Xuan Luo, Lianming Zhu

Research Collection School Of Economics

This paper studies the effect of foreign direct investment (FDI) on industrial ag-glomeration. Using the differential effects of FDI deregulation in 2002 in China on different industries, we find that FDI actually affects industrial agglomeration neg-atively. As FDI brings technological spillovers and various agglomeration benefits, other forces must be at work to drive our empirical finding. We propose a simple theory that FDI may discourage industrial agglomeration due to fiercer competition pressure. We find various evidence on this competition mechanism. We also examine an alternative theory based on spatial political competition, but find no evidence sup-porting it. On industrial growth, …

Environmental Regulations And Foreign Direct Investment, Valri Nesbit

Student Papers in Local and Global Regional Economies

I am writing a literature review of whether stronger environmental regulations affects foreign direct investment (FDI). Logic would tell you that the FDI would go to those countries that have lower environmental regulations because this results in lower costs to the corporation overall. I am a firm believer that corporations meet the definition of a sociopath: “a person…whose behavior is antisocial and who lacks a sense of moral responsibility or social conscience.”¹ Therefore, my belief is that these sociopathic corporations, which are deemed to be people pursuant to Santa Clara County v. Southern Pacific Railroad Company,² will continue …

Buying Influence? An Analysis Of The Political And Economic Impacts Of Chinese Foreign Direct Investment In The European Union, Ethan Kable

CMC Senior Theses

This thesis analyzes the economic and political impacts of the recent influx of Chinese outward foreign direct investment (OFDI) into the European Union (EU). I consider the ways in which EU perceptions of Chinese OFDI have evolved over the course of the past decade as well as what attempts the EU has made at an institutional level to address challenges posed by Chinese investment. I contend that despite institutional efforts to respond to these perceived challenges – namely losing a technological edge, security concerns, and unreciprocated market access – Chinese OFDI in the EU has had a divisive effect. Not …

Exploring The Relation Between Sectoral Foreign Direct Investment And Domestic Investment: Case For Turkey, Selin Erkan

Dissertations and Theses

This thesis investigates the relationship between Foreign Direct Investment (FDI) and domestic investment in Turkey during 2005Q1-2016Q2 to see if there is a crowding-in or crowding-out relationship. Sectoral FDI data for manufacturing, agriculture and service are employed and gross fixed capital formation is used as a proxy for domestic investment. GDP and export are used as control variables. A VAR model estimates negative coefficients of sectoral FDI on domestic investment indicating that there is some crowding-out in Turkey during 2005Q1-2016Q2 although not one-for-one. These negative effects are concentrated in the manufacturing sector.

The Impact Of Government Debt On Macroeconomic Indicators: Evidence From G7 And Asean Countries, Amani Ahmed Alzahrani

Masters Theses

Government debt continues to be a critical economic policy issue, which largely affects both developed and developing countries, due to elevated level of debt. From a general viewpoint, government debt is a crucial feature of a country's financial system and a major indicator that contributes to the formation of a country's reputation in the international market.

This paper investigates the impact of government debt on certain macroeconomic and wellbeing indicators in a group of industrialized and developing countries. That is, the study seeks to examine how government debt influences GDP per capita, domestic and foreign investment, and HDI in both …

Determinants Of Fdi And Fpi Volatility: An E-Garch Approach, Philip I. Nwosa, Omolade Adeleke

CBN Journal of Applied Statistics (JAS)

This study examined the determinants of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) volatility in Nigeria. The study used annual data covering the periods 1986 to 2016 and the EGARCH approach was employed. The study observed that trade openness and world GDP were the significant determinants of FDI volatility, while domestic interest rate and stock market capitalization were significant determinants of FPI volatility in Nigeria. Other variables were insignificant in influencing volatility in FDI and FPI. Consequently, the study recommends the need for the prudent management of these determinants (with particular reference to indigenous variables) to ensure reduced …

The Impact Of Mnc Involvement On The Lives Of Workers In Developing Economies Of Latin America, Gabriel Moss

WWU Honors College Senior Projects

It is clear that multinational corporations (MNCs) have significant impact in the growth trajectory of developing countries. The nature of this relationship, however, is heavily debated. What is the downstream impact from MNCs on the lives of workers in developing countries? Are countries perversely incentivized to repress and exploit their unskilled labor forces to attract investment? Do multinationals promote better working conditions and raise standards of living for workers? In this essay, I argue that multinationals have the potential to bring massive benefits to the working class in developing countries. If the government of the host country develops strong linkage …

Fdi And Manufacturing Industry In Asia, Luyi Jin

Lingnan Journal of Banking, Finance and Economics

The study finds that China’s manufacturing still maintained a growth level from 2003 to 2013. However, the growth has been declining. The rapid development of ASEAN economies led to the rise of the emerging manufacturing countries which have slowly adjusted and found their own advantages in challenging China.

The main conclusions of this paper are twofold. First, China will soon lose her low labor cost competitive advantage and needs to look for new strategy or industrial upgrades. Second, the current pattern of international division of labor will last for a fairly long period that developing countries will continue to serve …

Essay On Incentives, Economic Conditions, And Human Capital Formation, Masayuki Onda

LSU Doctoral Dissertations

In this dissertation, I offer three independent studies. The first examines the impact of foreign direct investment (FDI) on entrepreneurial activities over the period 1996-2008. We find that FDI has no discernible effect on entrepreneurial activity in probusiness states identified by the existence of Right-to-Work (RTW) states. In non-RTW states, however, we find that an increase in FDI decreases the average monthly rate of business creation and destruction. The second study assesses the impact of breastfeeding on early childhood outcomes. Using Birth Cohort of Early Childhood Longitudinal Survey (ECLS-b) data and employing a recently developed econometric technique, I estimate the …

Three Essays On Financial Constraints And Foreign Direct Investment, Todd Sarnstrom Ii

Dissertations

This three–essay dissertation makes contributions to the literature on foreign direct investment (FDI) and its relationship with collateral and the exchange rate. FDI refers to an investment made by a firm to establish or acquire a long–lasting interest in another firm operating outside its home country. Often, FDI involves substantial fixed costs that require the investing firm to seek external financing. Collateral has been identified as an important factor in the external financing of FDI. Firms lacking collateral are constrained in their ability obtain external financing. Exchange rates have also been identified as a factor in FDI. Exchange rate movements …

Income Distribution, International Trade And Foreign Direct Investment With Heterogeneous Firms, Feifei Wang

FIU Electronic Theses and Dissertations

This dissertation investigates the factors that firms take into consideration when they decide in which manner to expand internationally (i.e. foreign direct investment and international trade). Another component of the investigation focuses on what types of firms benefit the most and what are the associated benefits with expanding internationally.

I investigate self-selection and learning-by-exporting hypothesis by applying matched sampling techniques and non-structural econometric models. Using a Chinese firm-level dataset, I find that firms that start exporting are more productive than non-exporting ones. Additionally, in most industries exporters become more productive in time.

I then investigate how income inequality leads firms …

Geospatial Modeling Of Vietnamese Fdi, Cuong Nguyen Tien

Theses and Dissertations

This thesis sets a goal to analyze and project geographically disaggregated measures of FDI using aggregate data. We regress the country level FDI with aggregate, fine geospatial data on GDP, urban extent, and risk. By disaggregating the model, we will predict the FDI flow in every 1000 square kilometer area.

East Asia, Investment, And International Law: Distinctive Or Convergent?, Beth A. Simmons

All Faculty Scholarship

International investment agreements (IIAs) are the primary legal instruments designed to protect and encourage foreign direct investment world-wide. This article argues that Asia has used IIAs just as much as have other regions of the world to attract foreign direct investment, but that Asia’s pattern of agreement provisions is somewhat distinctive. States in East and Southeast Asia have tended to enter into agreements that strike a balance somewhat more favorable to host states than to foreign firms, at least when compared to the rest of the world. This may be due to high growth in the region, which tends to …

Fire-Sale Fdi? The Impact Of Financial Crises On Foreign Direct Investment, Olga B. Stoddard, Ilan Noy

Faculty Publications

We analyze the evolution of foreign direct investment (FDI) inflows to developing and emerging countries around financial crises. We empirically examine the Fire-Sale FDI hypothesis and describe the pattern of FDI inflows surrounding financial crises. We also add a more granular detail about the types of financial crises and their potentially differential effects on FDI. We distinguish between mergers and acquisitions(M&A) and greenfield investment, as well as between horizontal (tariff jumping) and vertical (integrating production stages) FDI. We find that financial crises have a strong negative effect on inward FDI in our sample. Crises are also shown to reduce the …