Showing 1 - 10 of 754
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
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
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
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
This paper explores the relationship between wages and foreign investment in Mexico, Venezuela, and the United States … countries: higher levels of foreign investment are associated with higher wages. In Mexico and Venezuela, foreign investment was … domestic firms. In the United States there is evidence of wage spillovers. The lack of spillovers in Mexico and Venezuela is …
Persistent link: https://www.econbiz.de/10012473784
Case studies of export behavior suggest that firms who penetrate foreign markets reduce entry costs for other potential exporters, either through learning by doing or through establishing buyer- supplier linkages. We pursue the idea that spillovers associated with one firm's export activity...
Persistent link: https://www.econbiz.de/10012473932