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North-South foreign direct investment (FDI) is frequently viewed as a process in which jobs relocate from the North to … where Northern firms invest to take advantage of lower wages. Contrary to expectation, I find that lower FDI costs increase … unemployment both in the North and in the South. There are two effects of FDI on unemployment, a direct positive one which …
Persistent link: https://www.econbiz.de/10011816895
We develop a tractable growth model to study the dynamic macroeconomic effects of multinational production (MP) across countries. In this model, MP is the vehicle of international idea diffusion: when firms produce in a foreign country, they contribute to the local stock of knowledge. We...
Persistent link: https://www.econbiz.de/10014235704
In a recent model Markusen and Venables (1999) describe the conditions under which foreign direct investments (FDI) can …
Persistent link: https://www.econbiz.de/10010313458
In a recent model Markusen and Venables (1999) describe the conditions under which foreign direct investments (FDI) can …
Persistent link: https://www.econbiz.de/10014035606
multinationals' entry and it consists of a unified study of absorptive capacities. We start from the idea that FDI speeds up the … FDI depends on the country specific absorptive capacity. We first interact FDI individually with different growth … determinants and we find that the contribution of FDI to economic growth is positive and significant depending on the level of …
Persistent link: https://www.econbiz.de/10009579226
types of FDI: unlike greenfield investment, M&As partly represent a rent accruing to previous owners, and do not necessarily … contribute to expanding the host country's capital stock. The model suggests that greenfield FDI has a stronger impact on growth … than M&A sales. This hypothesis is supported by our empirical results, which show that greenfield FDI enhances growth …
Persistent link: https://www.econbiz.de/10009376718
The countries comprising the Southern African Customs Union (SACU) are currently not very integrated into global value chains (GVCs), potentially missing out on important development opportunities. Accordingly, we explore high level options for promoting their integration. Given East Asia's...
Persistent link: https://www.econbiz.de/10011457940
The importance of Indian multinationals in the world economy has been growing significantly since 1990s. An increasing number of Indian firms across wide range of sectors are undertaking large overseas projects and their focus is gradually shifting towards developed countries. Until then, OFDI...
Persistent link: https://www.econbiz.de/10013153458
almost all Chinese financial flows as “FDI”. This would not be an issue if all Chinese financial flows, such as trade, aid …, exports credits, and FDI, were identical in terms of causes and results. However, what is often termed “FDI” in the extant … technical or general meanings of FDI, and, unfortunately, many of these Chinese financial flows do not qualify as such. This is …
Persistent link: https://www.econbiz.de/10013289598
foreign direct investment (FDI): the 'export platform FDI-led' growth model and the 'tax haven FDI-led' growth model. The … former is driven by the growth of the exports of foreign-owned firms and is associated with greenfield FDI inflows, whereas … taxation and is associated with intangible FDI inflows. The two models achieve demand, output, and income growth via …
Persistent link: https://www.econbiz.de/10014516136