Author: Norikatsu Hiraide
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This dissertation consists of three essays. The first essay investigates the importance of preferential trade agreement (PTA) formation in attracting inflows of foreign direct investment (FDI). In particular, we examine the heterogeneous effects of different types of PTAs (FTAs or CUs) on the extensive and intensive margins of FDI and on how the interdependence among various PTAs may affect a country's ability to attract FDI inflows. We find that the larger the preferential markets to which a country has access, the larger the FDI inflows the country receives. Furthermore, we find that the type of PTA matters in determining FDI inflows. In this case, we find that the formation of CUs tends to promote FDI inflows more than the formation of FTAs. Our findings also indicate that the formation of PTAs significantly affects FDI through the intensive margin rather than through the extensive margin. Importantly, notice that these effects are driven by the preferential markets to which a country has access and that have not established a PTA with the FDI-originating (home) country, confirming that PTA interdependence matters in determining FDI inflows. The second essay examines the effects of U.S. exposure to international trade in goods and services on U.S. local labor markets. The paper finds that the average increase in U.S. exposure to FDI inflows increases the share of manufacturing employment, while the average increase in U.S. exposure to FDI outflows reduces the share of manufacturing employment in the U.S. local labor markets. Overall, the average increase in U.S. exposure to international trade in goods and services is associated with a 0.049 percentage point increase in the share of manufacturing employment from 1991 to 2007. We quantify the employment impact and find that the implied employment changes due to U.S. exposure to international trade in goods and services are about 1.36 million over the period 1991-2007. The paper also investigates the employment and wage effects of U.S. exposure to international trade in goods and services and finds the positive net employment and wage effects from 1991 to 2007. The third essay investigates the effects of the formation of PTAs on different FDI strategies, including vertical, horizontal, and export-platform FDI. In addition, we examine heterogeneous effects of different types of PTAs (FTAs or CUs) on the intensive and extensive margins of each type of FDI and on how the interdependence among various PTAs may affect a host country's ability to attract each type of FDI. We find that a host country enlarging preferential markets through the formation of PTAs with other economic partners promotes the U.S. multinationals' horizontal and export-platform FDIs. On the other hand, a host country forming a PTA with the U.S. receives more vertical FDI. Also, we find that the formation of CUs tends to promote horizontal and export-platform FDI more than the formation of FTAs. Moreover, our results show that U.S. multinationals increase each type of FDI through the intensive margin of FDI.
Essays on Foreign Direct Investments and Preferential Trade Agreements
Author: Norikatsu Hiraide
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This dissertation consists of three essays. The first essay investigates the importance of preferential trade agreement (PTA) formation in attracting inflows of foreign direct investment (FDI). In particular, we examine the heterogeneous effects of different types of PTAs (FTAs or CUs) on the extensive and intensive margins of FDI and on how the interdependence among various PTAs may affect a country's ability to attract FDI inflows. We find that the larger the preferential markets to which a country has access, the larger the FDI inflows the country receives. Furthermore, we find that the type of PTA matters in determining FDI inflows. In this case, we find that the formation of CUs tends to promote FDI inflows more than the formation of FTAs. Our findings also indicate that the formation of PTAs significantly affects FDI through the intensive margin rather than through the extensive margin. Importantly, notice that these effects are driven by the preferential markets to which a country has access and that have not established a PTA with the FDI-originating (home) country, confirming that PTA interdependence matters in determining FDI inflows. The second essay examines the effects of U.S. exposure to international trade in goods and services on U.S. local labor markets. The paper finds that the average increase in U.S. exposure to FDI inflows increases the share of manufacturing employment, while the average increase in U.S. exposure to FDI outflows reduces the share of manufacturing employment in the U.S. local labor markets. Overall, the average increase in U.S. exposure to international trade in goods and services is associated with a 0.049 percentage point increase in the share of manufacturing employment from 1991 to 2007. We quantify the employment impact and find that the implied employment changes due to U.S. exposure to international trade in goods and services are about 1.36 million over the period 1991-2007. The paper also investigates the employment and wage effects of U.S. exposure to international trade in goods and services and finds the positive net employment and wage effects from 1991 to 2007. The third essay investigates the effects of the formation of PTAs on different FDI strategies, including vertical, horizontal, and export-platform FDI. In addition, we examine heterogeneous effects of different types of PTAs (FTAs or CUs) on the intensive and extensive margins of each type of FDI and on how the interdependence among various PTAs may affect a host country's ability to attract each type of FDI. We find that a host country enlarging preferential markets through the formation of PTAs with other economic partners promotes the U.S. multinationals' horizontal and export-platform FDIs. On the other hand, a host country forming a PTA with the U.S. receives more vertical FDI. Also, we find that the formation of CUs tends to promote horizontal and export-platform FDI more than the formation of FTAs. Moreover, our results show that U.S. multinationals increase each type of FDI through the intensive margin of FDI.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This dissertation consists of three essays. The first essay investigates the importance of preferential trade agreement (PTA) formation in attracting inflows of foreign direct investment (FDI). In particular, we examine the heterogeneous effects of different types of PTAs (FTAs or CUs) on the extensive and intensive margins of FDI and on how the interdependence among various PTAs may affect a country's ability to attract FDI inflows. We find that the larger the preferential markets to which a country has access, the larger the FDI inflows the country receives. Furthermore, we find that the type of PTA matters in determining FDI inflows. In this case, we find that the formation of CUs tends to promote FDI inflows more than the formation of FTAs. Our findings also indicate that the formation of PTAs significantly affects FDI through the intensive margin rather than through the extensive margin. Importantly, notice that these effects are driven by the preferential markets to which a country has access and that have not established a PTA with the FDI-originating (home) country, confirming that PTA interdependence matters in determining FDI inflows. The second essay examines the effects of U.S. exposure to international trade in goods and services on U.S. local labor markets. The paper finds that the average increase in U.S. exposure to FDI inflows increases the share of manufacturing employment, while the average increase in U.S. exposure to FDI outflows reduces the share of manufacturing employment in the U.S. local labor markets. Overall, the average increase in U.S. exposure to international trade in goods and services is associated with a 0.049 percentage point increase in the share of manufacturing employment from 1991 to 2007. We quantify the employment impact and find that the implied employment changes due to U.S. exposure to international trade in goods and services are about 1.36 million over the period 1991-2007. The paper also investigates the employment and wage effects of U.S. exposure to international trade in goods and services and finds the positive net employment and wage effects from 1991 to 2007. The third essay investigates the effects of the formation of PTAs on different FDI strategies, including vertical, horizontal, and export-platform FDI. In addition, we examine heterogeneous effects of different types of PTAs (FTAs or CUs) on the intensive and extensive margins of each type of FDI and on how the interdependence among various PTAs may affect a host country's ability to attract each type of FDI. We find that a host country enlarging preferential markets through the formation of PTAs with other economic partners promotes the U.S. multinationals' horizontal and export-platform FDIs. On the other hand, a host country forming a PTA with the U.S. receives more vertical FDI. Also, we find that the formation of CUs tends to promote horizontal and export-platform FDI more than the formation of FTAs. Moreover, our results show that U.S. multinationals increase each type of FDI through the intensive margin of FDI.
Beyond Trade
Author: Denis Medvedev
Publisher: World Bank Publications
ISBN:
Category : Barriers
Languages : en
Pages : 66
Book Description
Abstract: The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of "deep integration" PTAs had been advanced.
Publisher: World Bank Publications
ISBN:
Category : Barriers
Languages : en
Pages : 66
Book Description
Abstract: The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of "deep integration" PTAs had been advanced.
Beyond Trade
Author: Denis Medvedev
Publisher:
ISBN:
Category :
Languages : en
Pages : 66
Book Description
The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of deep integration PTAs had been advanced.
Publisher:
ISBN:
Category :
Languages : en
Pages : 66
Book Description
The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of deep integration PTAs had been advanced.
Essays on Foreign Direct Investment, Trade and Multinational Firms
Investing in Protection
Author: Mark S. Manger
Publisher: Cambridge University Press
ISBN: 0521765048
Category : Business & Economics
Languages : en
Pages : 285
Book Description
Since the early 1990s there has been an explosion of preferential trade agreements between North and South. Arguing that this is based on competition for investment opportunities rather than free trade, Mark Manger offers a new perspective on the roles of the state and corporations in changing patterns of international trade.
Publisher: Cambridge University Press
ISBN: 0521765048
Category : Business & Economics
Languages : en
Pages : 285
Book Description
Since the early 1990s there has been an explosion of preferential trade agreements between North and South. Arguing that this is based on competition for investment opportunities rather than free trade, Mark Manger offers a new perspective on the roles of the state and corporations in changing patterns of international trade.
Why are Trade Agreements More Attractive in the Presence of Foreign Direct Investment?
Author: Marcelo Olarreaga
Publisher:
ISBN:
Category : Commercial treaties
Languages : en
Pages : 54
Book Description
This paper argues that interests of nationals and owners of home-based foreign capital in the formation of a trade agreement are not antagonistic, except under rather particular assumptions on initial tariffs among potentional members. Further, if initial tariffs are endogenously determined through an industry-lobbying process, then TA that would have been immisering in the absence of foreign direct investment, may be welfare-enhancing in the presence of foreign-owned firms
Publisher:
ISBN:
Category : Commercial treaties
Languages : en
Pages : 54
Book Description
This paper argues that interests of nationals and owners of home-based foreign capital in the formation of a trade agreement are not antagonistic, except under rather particular assumptions on initial tariffs among potentional members. Further, if initial tariffs are endogenously determined through an industry-lobbying process, then TA that would have been immisering in the absence of foreign direct investment, may be welfare-enhancing in the presence of foreign-owned firms
Do Preferential Trade Agreements Increase Their Members' Foreign Direct Investment?
Author: Max Büge
Publisher:
ISBN: 9783889856555
Category :
Languages : en
Pages : 53
Book Description
Publisher:
ISBN: 9783889856555
Category :
Languages : en
Pages : 53
Book Description
A Multilateral Agreement on Foreign Direct Investment
Author: Michael Hart
Publisher: Centre for Trade Policy and Law = Centre de droit et de politique commerciale
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 44
Book Description
Publisher: Centre for Trade Policy and Law = Centre de droit et de politique commerciale
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 44
Book Description
Three Essays on the Impact of Preferential Trade Agreements on Development, Trade, and Investment
Author: Denis E. Medvedev
Publisher:
ISBN:
Category : CAFTA (Free trade agreement)
Languages : en
Pages : 472
Book Description
Publisher:
ISBN:
Category : CAFTA (Free trade agreement)
Languages : en
Pages : 472
Book Description
Essays on International Trade and Foreign Direct Investment
Author: Han Ping Davin Chor
Publisher:
ISBN: 9780549023234
Category :
Languages : en
Pages : 165
Book Description
Chapter 3 explores the effects of financial development in the FDI host country on multinational sales activity. Using data on US multinational activity abroad, we find that stronger host country financial development tends to lower the share of affiliate sales that remain in the local market, while increasing the share of sales to third-country destinations. We provide a three-country model with heterogeneous firms to rationalize these observations: Host countries with better financial development foster entry by domestic firms, resulting in a more competitive local market. This leads multinationals to orient their operations away from horizontal sales to the local market, towards export-platform sales to third-country markets instead.
Publisher:
ISBN: 9780549023234
Category :
Languages : en
Pages : 165
Book Description
Chapter 3 explores the effects of financial development in the FDI host country on multinational sales activity. Using data on US multinational activity abroad, we find that stronger host country financial development tends to lower the share of affiliate sales that remain in the local market, while increasing the share of sales to third-country destinations. We provide a three-country model with heterogeneous firms to rationalize these observations: Host countries with better financial development foster entry by domestic firms, resulting in a more competitive local market. This leads multinationals to orient their operations away from horizontal sales to the local market, towards export-platform sales to third-country markets instead.