Three Essays on Trade, Growth, and Capital Mobility Across Countries PDF Download

Author: Tzvetana Rakovski
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 0

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Author: David Leonard Carr
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 310

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Author: Botirjan Baltabaev
Publisher:
ISBN:
Category :
Languages : en
Pages : 262

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This dissertation comprises three different studies that investigate the impact of ForeignDirect Investment (FDI) on separate macroeconomic issues. The first paper examines theeffect of FDI on Total Factor Productivity growth. Although the role of FDI in facilitatingtechnology transfer is well-known in the literature, empirical evidence regarding the effectof FDI on growth is mixed. Contradictory results in the literature may be due to the failureof accounting for endogeneity and the absorptive capacity of the hosting countries. Usingpanel data for 49 countries over the 1974-2008 time period, and the existence ofinvestment promotion agencies in the receiving countries as an instrument, the resultsshow that FDI leads to higher productivity growth. The results also indicate a significantpositive effect on the interaction between FDI and distance to the technological frontier,suggesting that the ability of technologically backward countries in absorbing technologiesdeveloped at the frontiers increases as more FDI stock accumulates.The second paper deals with capital flows and export diversification. Casualinspection of available evidence suggests that the magnitude of FDI is correlated with theextent of export diversification. Yet, little is known about the nature of this link. To bridgethis gap in the literature, I propose an inframarginal 2*2*2 Heckscher-Ohlin model oftrade that allows capital mobility and technological differences across countries. Themodel shows that trade costs determine the equilibrium trade structures. When trade costsare too high, autarky emerges as general equilibrium. However, an initial reduction intrade costs triggers trade in commodities based on comparative advantage. Further declinein transaction costs leads to the movement of capital (inward FDI) to the capital scarcecountry, enabling it to export a greater variety of goods under certain conditions.Finally, the third paper empirically studies the causal effect of FDI on exportdiversification. The existing literature, which is still at infancy, has not dealt with theproblems of endogeneity and aggregation bias in estimating the effects of FDI on exportdiversification. In this paper, I provide more robust evidence with 2SLS regression using anovel instrument for FDI as well as a highly disaggregated measure of exportdiversification with U.S. imports data (at the 10-digit level of Harmonized Systemclassification). Overall results confirm the export diversifying effect of FDI. However,further tests reveal that FDI only acts as a catalyst of export diversification in developingcountries, while advanced countries do not show an increase in the variety of exports dueto multinationals.

Author: Aaditya Mattoo
Publisher: Oxford University Press
ISBN: 019923521X
Category : Business & Economics
Languages : en
Pages : 675

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This title provides a comprehensive introduction to the key issues in trade and liberalization of services. Providing a useful overview of the players involved, the barriers to trade, and case studies in a number of service industries, this is ideal for policymakers and students interested in trade.

Author: Michael D. Bordo
Publisher: University of Chicago Press
ISBN: 0226065995
Category : Business & Economics
Languages : en
Pages : 600

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As awareness of the process of globalization grows and the study of its effects becomes increasingly important to governments and businesses (as well as to a sizable opposition), the need for historical understanding also increases. Despite the importance of the topic, few attempts have been made to present a long-term economic analysis of the phenomenon, one that frames the issue by examining its place in the long history of international integration. This volume collects eleven papers doing exactly that and more. The first group of essays explores how the process of globalization can be measured in terms of the long-term integration of different markets-from the markets for goods and commodities to those for labor and capital, and from the sixteenth century to the present. The second set of contributions places this knowledge in a wider context, examining some of the trends and questions that have emerged as markets converge and diverge: the roles of technology and geography are both considered, along with the controversial issues of globalization's effects on inequality and social justice and the roles of political institutions in responding to them. The final group of essays addresses the international financial systems that play such a large part in guiding the process of globalization, considering the influence of exchange rate regimes, financial development, financial crises, and the architecture of the international financial system itself. This volume reveals a much larger picture of the process of globalization, one that stretches from the establishment of a global economic system during the nineteenth century through the disruptions of two world wars and the Great Depression into the present day. The keen analysis, insight, and wisdom in this volume will have something to offer a wide range of readers interested in this important issue.

Author: Martin Feldstein
Publisher: University of Chicago Press
ISBN: 0226241807
Category : Business & Economics
Languages : en
Pages : 500

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Recent changes in technology, along with the opening up of many regions previously closed to investment, have led to explosive growth in the international movement of capital. Flows from foreign direct investment and debt and equity financing can bring countries substantial gains by augmenting local savings and by improving technology and incentives. Investing companies acquire market access, lower cost inputs, and opportunities for profitable introductions of production methods in the countries where they invest. But, as was underscored recently by the economic and financial crises in several Asian countries, capital flows can also bring risks. Although there is no simple explanation of the currency crisis in Asia, it is clear that fixed exchange rates and chronic deficits increased the likelihood of a breakdown. Similarly, during the 1970s, the United States and other industrial countries loaned OPEC surpluses to borrowers in Latin America. But when the U.S. Federal Reserve raised interest rates to control soaring inflation, the result was a widespread debt moratorium in Latin America as many countries throughout the region struggled to pay the high interest on their foreign loans. International Capital Flows contains recent work by eminent scholars and practitioners on the experience of capital flows to Latin America, Asia, and eastern Europe. These papers discuss the role of banks, equity markets, and foreign direct investment in international capital flows, and the risks that investors and others face with these transactions. By focusing on capital flows' productivity and determinants, and the policy issues they raise, this collection is a valuable resource for economists, policymakers, and financial market participants.

Author: Commission on Growth and Development
Publisher: World Bank Publications
ISBN: 0821374923
Category : Business & Economics
Languages : en
Pages : 198

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The result of two years work by 19 experienced policymakers and two Nobel prize-winning economists, 'The Growth Report' is the most complete analysis to date of the ingredients which, if used in the right country-specific recipe, can deliver growth and help lift populations out of poverty.

Author: Ms.Era Dabla-Norris
Publisher: International Monetary Fund
ISBN: 1513547437
Category : Business & Economics
Languages : en
Pages : 39

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This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.

Author: Cong S. Pham
Publisher:
ISBN:
Category : China
Languages : en
Pages : 154

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Author: Augusto de la Torre
Publisher: World Bank Publications
ISBN: 0821365444
Category : Business & Economics
Languages : en
Pages : 232

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Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.