Author: Nitesh SahaPublisher:
ISBN:
Category : Economic development
Languages : en
Pages : 280
Book Description
Three Essays on Foreign Direct Investment and Economic Growth in Developing Countries
Author: Nitesh SahaPublisher:
ISBN:
Category : Economic development
Languages : en
Pages : 280
Book Description
Three Essays on Foreign Direct Investment in Developing Countries
Author: Hea-jung HyunThree Essays in International Economics
Author: Maxwell OtengPublisher:
ISBN:
Category : Africa
Languages : en
Pages : 226
Book Description
Three Essays on China's Economic Growth and Inequality
Author: Yuyu WangThree Essays on the Political Economy of Foreign Investments and International Business
Author: Trung A.. DangPublisher:
ISBN:
Category : Democracy
Languages : en
Pages : 87
Book Description
"My dissertation consists of three essays on the political economy of foreign investments and international business. The first essay investigates the relationship between a country's level of democracy and its ability to attract foreign direct investment (FDI). According to a well-established finding in the literature, democratic countries can attract more FDI. However, I show that this positive association between democracy and FDI disappears once I control for a selection bias in which FDI tends to come from democratic countries in the first place. I then show that it is not democracy by itself but the level of political similarity between any two countries that affects their FDI flow. In other words, democracy does not attract FDI, political similarity does. The second essay looks into how well countries absorb foreign investments after they receive those investments. I find that FDI contributes less to economic growth in more democratic countries. This result survives a long series of robustness checks, and its substantive effect is considerably larger than those of several other factors that affect growth, including market size, trade openness, development level, and inflation. While the first two essays are empirical in nature and primarily deal with politics at the macro level (i.e., between countries), the third essay is a theoretical study ofthe strategic interaction between micro-level actors (i.e., firms, activist groups) and their governments. It is, to my knowledge, the first game-theoretic model of private politics - a relatively young field - that focuses on the international dimension. I find that activist campaigns in democratic and nondemocratic countries have different characteristics due to the nature of the competition between firms and activist groups. Counterintuitively, I find that even if governments have pure economic motives - i.e., they only care about gaining investments for their countries?there still does not exist a "race to the bottom" in equilibrium, as commonly expected. Finally, I propose a novel answer to the perennial question in political science of why there is so "little" lobbying money in politics, which differs from previous explanations in that mine is the first one that is based on a competition dynamic."--Pages vi-vii.
Three Essays on Foreign Investment
Author: Krishna SrinivasanThree Essays on Developing Countries and Foreign Direct Investment
Author: Youngchae LeePublisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 0
Book Description
"My dissertation is motivated by the question, "In an era of ever-increasing global economic integration, why do some developing countries continually struggle to attract foreign direct investment (FDI)?" I explain this phenomenon by highlighting the interaction between international law and domestic institutions, and illustrating how this dynamic affects FDI in developing countries. My methods involve large-N quantitative analyses of developing countries, supported by case studies. The first chapter, "The Effects of Federalism and decentralization on the Business Environment for Foreign Direct Investment," shows that while developing countries often sign bilateral investment treaties (BITs) to commit to a stable policy environment, the effectiveness of these treaties in improving policy stability is reduced by federalism and decentralization. According to international law, national governments are legally responsible for any BIT violations that occur within their territories, even when the violation was committed by a subnational-level government. One implication of this is that when foreign investors initiate international arbitration claims over alleged BIT violations, the respondents are always national governments. This gives subnational governments weaker incentives than national governments to comply with BITs, which decreases the effectiveness of BITs in promoting policy stability in countries where subnational governments are relatively powerful. The second chapter, "Can Rational Choice Explain Bilateral Investment Treaties? How Lack of Legal Capacity Affects BIT Signing," argues that a country's legal capacity affects its ability to fully evaluate the consequences of BITs. I show that countries with federal and decentralized governments are more likely to be embroiled in international investment disputes over alleged violations of BITs, but that only countries with higher legal capacity are likely to adjust for this increased risk by signing fewer BITs. This demonstrates that a country's ability to behave in a "rational" manner when signing international treaties is dependent on its level of legal expertise. The third chapter, "The Effects of Judicial Independence on Foreign Direct Investment and International Arbitration Laws," studies how developing countries with institutional disadvantages use international alternatives to promote FDI, and how this differs by regime type. I show that in democratic countries, a decrease in judicial independence is associated with lower FDI inflows. Countries facing this problem respond by being more likely to adopt laws that provide investors with the option of international arbitration. These patterns are, however, not observed in autocratic countries. This is because in autocratic countries, the government can provide foreign investors with opportunities to collude with the government and extract rents at the expense of the public, making them less dependent on judicial independence to attract FDI"--Pages vii-ix.
North-South Globalization and Foreign Direct Investment
Author: Jakob SchwabPublisher: Springer
ISBN: 3658228113
Category : Business & Economics
Languages : en
Pages : 150
Book Description
Jakob Schwab analyzes central mechanisms in the systematic economic interaction between rich and poor countries. He focuses on the drivers and effects of investment in developing countries and shows that predictions of standard economic analysis may turn around when accounting for peculiarities of North-South globalization. The author shows how endowments with educational skill levels may lead to complementarity between trade and capital inflows, how inflows of direct investment capital may hinder income growth in poor countries, and how the distributional effects of the presence of multinational enterprises are perceived differently in countries of different development structures.
Three Essays on the Relationship Between Policy Uncertainty and Foreign Direct Investment
Author: Chikezie Kenneth OkoliPublisher:
ISBN:
Category : International economic relations
Languages : en
Pages : 163
Book Description
Foreign direct investment (FDI) occurs when an entity in one country establishes a significant degree of ownership in an enterprise in another country. FDI is a critical component in ensuring the development of any economy. It often aids with the development of an industry or sector within an economy by bringing in capital, new technologies, manufacturing methodologies, and managing expertise to the receiving country. This dissertation examines the relationship between policy uncertainty and foreign direct investment (FDI) in developed economies. The first essay focuses on U.S. policy uncertainty and its effects on U.S. FDI inflows, while the second essay focuses on the cross-border effect of U.S. policy uncertainty on its neighbours FDI inflows. The third essay focuses on how policy uncertainty affects the investment entry mode choices of multinational enterprises. In the first essay, I add to the discussion surrounding Foreign Direct Investment (FDI) and its relationship with policy uncertainty by employing novel measures of policy uncertainty in the United States. Drawing some conclusions from the Real Options investment theory, I examine the relationship between policy uncertainty and FDI inflows using different measures of policy uncertainty. Overall, I find that an increase in the Partisan Conflict (PC) index increases the flow of FDI into the United States. This finding appears at odds with what has previously been found in the literature regarding political uncertainty and FDI. Using other measures of policy uncertainty such as the Economic Policy Uncertainty index (EPU) and the categorical EPU (CPU) index the estimated results show policy uncertainty as measured by the EPU index, decreases FDI into manufacturing sectors and decreases FDI into non-manufacturing sectors. This effect varies depending on the sample period being examined. However, when policy uncertainty is measured by the CPU index, policy uncertainty has no impact on FDI inflows to the United States regardless of the type of industry or capital intensity. The second essay examines how U.S. policy uncertainty spillovers affect its neighbours within the context of FDI inflows. Adopting a common framework employed in the literature, I utilize a Vector Autoregressive (VAR) model to examine the contemporaneous relationships between the endogenous and exogenous variables. The two spillover transmission methods examined in this paper are Direct Transmission and Indirect Transmission. The empirical analysis conducted showed that the significance of U.S. policy uncertainty spillovers varied by country and the method of transmission. Canadian FDI inflows from the United States and from the rest of the world were shown to be more susceptible to the negative effects of U.S. policy uncertainty spillovers via the direct channel. But the results remained mixed when considering the indirect channel. For Mexico, the results showed that only U.S. FDI inflows to Mexico were susceptible to the negative effects of U.S. policy uncertainty via the indirect channel. Furthermore, when policy uncertainty spillovers were defined between Partisan Conflict (PC) index and the Economic Policy Uncertainty (EPU) index, the results showed that only EPU spillovers were significant in affecting FDI across Canada and Mexico. The third essay examines the mode of entry that Japanese multinational enterprises (MNEs) adopt in the presence of host market policy uncertainty. Employing a two-stage framework, I examine how Japanese MNEs establish foreign affiliates in 25 countries. In the first stage, the firms decide whether to adopt a direct or an indirect mode of entry in the presence of host market policy uncertainty. A direct entry mode is when the MNE has an ownership share in the affiliate that is greater than 10% while an indirect entry mode is when the MNE has no ownership shares in the affiliate but sets the operational and business goals of the affiliate. The results show that Japanese MNEs preferred an indirect mode of entry when faced with medium levels of policy uncertainty. In the second stage the estimated results show that relatively high levels of policy uncertainty caused Japanese MNEs to prefer minority Joint Ventures over establishing Wholly Owned Subsidiaries. Since 58% of observed investments occur in two countries (China, the United States) it is possible that the results of the analysis are being driven by the concentration of investments in both countries. Therefore, I re-examine the model to focus exclusively on investment activities in China and the United States. These results show that the previously described results were due to the investment activity in these two countries.
Author: Saima Kamran Pathan