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's institutional deficiencies, yet China is now one of the world's largest FDI destinations. This incongruity characterizes China …Weak institutions ought to deter foreign direction investment (FDI), and mass media stories highlight China …'s paradoxical growth. Cross-country regressions show that China's FDI inflow is not exceptionally large, given the quality of its …
Persistent link: https://www.econbiz.de/10012465214
We revisit the debate over whether political institutions cause economic growth, or whether, alternatively, growth and human capital accumulation lead to institutional improvement. We find that most indicators of institutional quality used to establish the proposition that institutions cause...
Persistent link: https://www.econbiz.de/10012468125
FDI investors control the management of the firms, whereas FPI investors delegate decisions to managers. Therefore … expectation of future liquidity problems export relatively more FPI than FDI, and (2) this effect strengthens as the source … country's capital market transparency worsens. To test these hypotheses, we examine the variation of FPI relative to FDI for …
Persistent link: https://www.econbiz.de/10012462924
The empirical analysis in "International R&D Spillovers" (Coe and Helpman, 1995) is first revisited by applying modern panel cointegration estimation techniques to an expanded data set that we have constructed for the purpose of this study. The new estimates confirm the key results reported in...
Persistent link: https://www.econbiz.de/10012464577
crises export relatively more FPI than FDI, and (2) this effect strengthens as the source country's capital market … transparency worsens. To test these hypotheses, we apply a dynamic panel model and examine the variation of FPI relative to FDI for …
Persistent link: https://www.econbiz.de/10012464879
markets in enabling foreign direct investment (FDI) to promote growth through backward linkages, shedding light on this … financial markets allow the backward linkages between foreign and domestic firms to turn into FDI spillovers. Our calibration … growth rates that are almost twice those of economies with poor financial markets, b) increases in the share of FDI or the …
Persistent link: https://www.econbiz.de/10012466143
restate bilateral investment positions to better reflect the true financial linkages connecting countries around the world. We … nearly 600 billion dollars, while China's official net creditor position to the rest of the world is overstated by about 50 …
Persistent link: https://www.econbiz.de/10012482036
The explosion of multinational activities in recent decades is rapidly transforming the global landscape of industrial production. But are the emerging clusters of multinational production the rule or the exception? What drives the offshore agglomeration of multinational firms in comparison to...
Persistent link: https://www.econbiz.de/10012463073
As production comes to depend more on intangible productive assets, the location of production by multinational firms becomes increasingly ambiguous. The reason is that, within the firm, these assets have no clear geographical location, but only a nominal location determined by the firm's tax or...
Persistent link: https://www.econbiz.de/10012464523
foreign direct investment (FDI) occurs between rich countries. The share of vertical FDI (subsidiaries which provide inputs to …-industry' vertical FDI and find that their location and activity are significantly different to the inter-industry vertical FDI visible … production giving rise to a class of high-skill intra-industry vertical FDI …
Persistent link: https://www.econbiz.de/10012465202