Similar Search Results

Inappropriate Pooling of Wealthy and Poor Countries in Empirical FDI Studies

Blonigen, Bruce A.; Wang, Miao - 2021

This paper examines the question of whether less-developed countries' (LDCs') experiences with foreign direct investment (FDI) systematically different from those of developed countries (DCs). We do this by examining three types of empirical FDI studies that typically do not distinguish between...

Persistent link: https://www.econbiz.de/10013228764

Cointegration and Tests of Present Value Models

Campbell, John Y. - 2010

In a model where a variable Y[sub t] is proportional to the present value, with constant discount rate, of expected future values of a variable y[sub t] the quot;spreadquot; S[sub t]= Y[sub t] - [theta sub t] will be stationary for some [theta] whether or not y[sub t]must be differenced to...

Persistent link: https://www.econbiz.de/10012763269

Gains from FDI Inflows with Incomplete Information

Razin, Asaf; Tsadḳah, Efrayim - 2021

The paper develops an international macroeconomic model of FDI flows with a unique feature: a hands-on management ability to react in real time to changing economic environments. Anticipating this advantage, foreign direct investors can outbid other investors in a certain industry in which they...

Persistent link: https://www.econbiz.de/10013247393

Y2k and Offshoring : The Role of External Economies and Firm Heterogeneity

Mitra, Devashish; Ranjan, Priya - 2021

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...

Persistent link: https://www.econbiz.de/10013233896

Transition to FDI Openness : Reconciling Theory and Evidence

McGrattan, Ellen R. - 2011

conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is … consistent with theory if countries are in transition to FDI openness. Anticipated welfare gains lead to temporary declines in … reconciliation of theory and evidence is accomplished with a multicountry dynamic general equilibrium model parameterized with data …

Persistent link: https://www.econbiz.de/10013130264

Inward Versus Outward Growth Orientation in the Presence of Country Risk

Aizenman, Joshua - 2008

The purpose of this paper is to model the role of trade dependency in determining the access of a developing economy to the international credit market, and its desirable growth strategy. With full integration of capital markets the choice with respect to the inwardness of a technology is...

Persistent link: https://www.econbiz.de/10012774724

Foreign Capital and Economic Growth

Prasad, Eswar S. - 2010

, implying that a reduced reliance on foreign capital is associated with higher growth. This result is weaker when we use panel …

Persistent link: https://www.econbiz.de/10012759675

Cointegration Vector Estimation by Panel Dols and Long-Run Money Demand

Mark, Nelson C.; Sul, Donggyu - 2022

We study the panel DOLS estimator of a homogeneous cointegration vector for a balanced panel of N individuals observed … infinity. In a series of Monte Carlo experiments, we find that the asymptotic distribution theory provides a reasonably close … approximation to the exact finite sample distribution. We use panel dynamic OLS to estimate coefficients of the long-run money …

Persistent link: https://www.econbiz.de/10013324090

Distinguishing Constraints on Financial Inclusion and Their Impact on GDP, TFP, and the Distribution of Income

Dabla-Norris, Era - 2015

A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion...

Persistent link: https://www.econbiz.de/10013030631

Measuring Business Cycles by Saving for a Rainy Day

Crucini, Mario J.; Shintani, Mototsugu - 2021

We propose a simple saving-based measure of the cyclical component in GDP. The measure is motivated by the prediction that the represenative consumer changes savings in response to temporary deviations of income from its stochastic trend, while satisfying a present-value budget constraint. To...

Persistent link: https://www.econbiz.de/10013225022