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Promotion of inward foreign direct investment (FDI) into Japan has been an important policy in the Abenomics growth strategy. This paper examines if we observe positive impacts of the policy in the data. We first estimate a gravity model of bilateral FDIs using data for 35 OECD countries as...
Persistent link: https://www.econbiz.de/10012479632
The treatment of foreign investors has been a contentious topic in U.S. entrepreneurship policy in recent years. This paper examines foreign corporate investments in Silicon Valley from a theoretical and empirical perspective. We model a setting where such funding may allow U.S. entrepreneurs to...
Persistent link: https://www.econbiz.de/10012481131
This paper suggests that the use of investment incentives focusing exclusively on foreign firms, although motivated in some cases from a theoretical point of view, is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for financial...
Persistent link: https://www.econbiz.de/10012469214
We explore the impact of bilateral tax treaties on foreign direct investment using data from OECD countries over the period 1982-1992. We find that recent treaty formation does not promote new investment, contrary to the common expectation. For certain specifications we find that treaty...
Persistent link: https://www.econbiz.de/10012469881
This paper investigates the divisional investment policies of diversified firms. We find that investment of the smallest division of diversified firms is significantly related to the cash flow of the other segments. We then show that the smallest division's investment is more sensitive to the...
Persistent link: https://www.econbiz.de/10012473206
We study Japanese investments between 1980 and 1992 to assess the effectiveness of state promotion efforts in light of strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location of investment - foreign trade zones and labor...
Persistent link: https://www.econbiz.de/10012474029
Despite the recent rapid development and greater openness of China's economy, FDI flows between China and technologically advanced countries are relatively small in both directions. We assess global capital flows in light of China's quid pro quo policy of exchanging market access for transfers...
Persistent link: https://www.econbiz.de/10012459412
Following its opening to trade and foreign investment in the mid-1980s, Mexico's economic growth has been modest at … that the relation between openness and growth is not a simple one. Using standard trade theory, we find that Mexico has … continuing reforms, Chinese growth is likely to slow down sharply, perhaps leaving China at a level less than Mexico's real GDP …
Persistent link: https://www.econbiz.de/10012462077
effect of NAFTA and the GATT on the SDS industry was to help induce Wal-Mart to enter Mexico. Once there, Walmex … new products and processes from their headquarters to Mexico. Finally, although Mexican detergent exports captured an …
Persistent link: https://www.econbiz.de/10012466207
In this paper, we examine the increase in the relative wages of skilled workers in Mexico during the 1980s. We argue … that rising wage inequality in Mexico is linked to capital inflows from abroad. The effect of these capital inflows, which … production in Mexico towards relatively skill-intensive goods thereby increasing the relative demand for skilled labor. We study …
Persistent link: https://www.econbiz.de/10012473764