Search results for "F23"
showing 10 items of 20 documents
Bilateral De-Jure Exchange Rate Regimes and Foreign Direct Investment: A Gravity Analysis
2021
Abstract This paper introduces a novel dataset on bilateral de-jure exchange rate regimes. The new dataset accounts for the fact that officially pegging to one currency is uninformative about the exchange rate regime prevailing vis-a-vis other currencies, and it allows characterizing bilateral exchange rate regimes based on countries’ ex-ante announcements rather than ex-post observations. We use this data to estimate the effect of expected exchange rate volatility on foreign direct investment (FDI). Starting from a simple model that suggests that announced exchange rate stability enhances bilateral FDI flows, we provide empirical evidence that lends support to this claim: countries that ar…
Offshoring and Sequential Production Chains: A General-Equilibrium Analysis
2021
The Canadian journal of economics = Revue canadienne d'économique (2021). doi:10.1111/caje.12506
R&D Offshoring and the Productivity Growth of European Regions
2013
The recent increase in R&D offshoring have raised fears that knowledge and competitiveness in advanced countries may be at risk of `hollowing out\'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D offshoring is associated with productivity dynamics of European regions. We find that offshoring regions have higher productivity growth, but this positive effect fades down with the number of investment projects carried out abroad. A large and positive correlation emerge between the extent of R&D offshoring and the home reg…
Like it or not? How the economic and institutional environment shapes individual attitudes towards multinational enterprises
2018
The integration of goods and factor markets has affected the lives of individuals all over the world. While some agents have reaped enormous benefits from this process, others have lost in terms of income and welfare. It is usually argued that individuals are aware of the distributional effects of globalization, and that this knowledge shapes their preferences over various policy issues such as protection, financial market regulation etc. In this chapter, we use a large surveybased data set to explore whether this conjecture is correct when it comes to individuals’ attitudes towards multinational enterprises (MNEs).
Los emprendedores surgidos de las empresas multinacionales de inversión extranjera directa: un estudio exploratorio en Costa Rica
2014
ResumenEl presente trabajo busca evaluar la creación de empresas por parte de exempleados de empresas multinacionales de inversión extranjera directa. En concreto, se busca dimensionar el fenómeno, caracterizarlo, así como valorar el desempeño de las empresas creadas. El estudio se hizo mediante un muestreo aleatorio simple con margen de error del 7% y nivel de confianza del 95%, sobre una base de datos de 11.120 exempleados de empresas multinacionales en Costa Rica (n=175). Además se utilizó un grupo control ad hoc. Los resultados muestran cómo son estos emprendedores, el proceso creador experimentado, las características y el desempeño de las nuevas empresas.AbstractThe aim of this invest…
On the Internationalization of Corporate Boards
2013
Despite the global reach of their commercial activities, many multinational firms have proved slow in internationalizing their boards of directors. Based on a panel study of the internationalization of the boards of 347 non-financial firms from the Nordic countries, we find a higher fraction of international board membership in firms with more foreign sales, in firms with more foreign ownership and in firms whose shares are traded on foreign (mostly European) stock exchanges. Moreover, we find international directors and national directors with international experience complementary. The first-mentioned group is found to serve a monitoring role, related to financial internationalization of …
Understanding german fdi in latin america and asia: a comparison of glm estimators
2020
The growth of Foreign Direct Investment (FDI) in developing countries over the last decade has attracted an intense academic and policy-oriented interest for its determinants. Despite the gravity model being considered a useful tool to approximate bilateral FDI flows, the literature has seen a growing debate in relation to its econometric specification, so that which is the best estimator for the gravity equation is far from conclusive. This paper examines the determinants of German outward FDI in Latin America and Asia for the period 1996-2012 by evaluating the performance of alternative Generalized Linear Model (GLM) estimators. Our findings indicate that Negative Binomial Pseudo Maximum …
Offshoring along the production chain
2009
Recent contributions on offshoring often assume that firms can freely split their production process into separate steps which can be ranked according to the cost savings from producing abroad. We replace this assumption by the notion of a technologically determined sequence of production steps. In our model, cost savings from offshoring fluctuate along the production chain, and moving unfinished goods across borders causes transport costs. We show that, in such a setting, firms may refrain from offshoring even if relocating individual steps would be advantageous in terms of offshoring costs, or they may offshore (almost) the entire production chain to save transport costs. Small variations…
Headquarters’ Control Capacity and the Choice of R&D Organizational Forms Abroad
2013
International audience; Recently, regarding globalization, the decentralization of R&D activities abroad by multinational companies (MNCs) has become important in developed countries. However, academic research has not given this topic sufficient attention. This paper explains how the efficiency of control and incentive mechanisms may affect the choice of organizational forms by MNCs that decentralize their R&D activities abroad. We identify five main organizational forms: wholly owned green-field subsidiary, wholly owned acquired subsidiary, joint venture, cross-licensing agreements, and unilateral licensing agreements. A questionnaire addressed to the R&D managers of American and European…
What Can International Finance Add to International Strategy?
2011
This chapter focuses on the role of corporate financial strategies to improve firms’ market valuations, and thus lower their cost of capital. The identification of successful strategies is accomplished within an overall strategic framework and related to how the firm perceives the degree of international financial integration. Five strategies for how to break out of a segmented, thin domestic capital market are highlighted together with historical success cases. The chapter illustrates the linkages between business strategy, firm motivation, and various financial strategies. JEL: F21, F23, F36, G32, G34.