Search results for "FDI"
showing 10 items of 30 documents
Greenfield FDI attractiveness index: a machine learning approach
2022
Purpose This study aims to propose a comprehensive greenfield foreign direct investment (FDI) attractiveness index using exploratory factor analysis and automated machine learning (AML). We offer offer a robust empirical measurement of location-choice factors identified in the FDI literature through a novel method and provide a tool for assessing the countries' investment potential. Design/methodology/approach Based on five conceptual key sub-domains of FDI, We collected quantitative indicators in several databases with annual data ranging from 2006 to 2019. This study first run a factor analysis to identify the most important features. It then uses AML to assess the relative importance of…
Foreign Taleovers and Wages: Theory and Evidence from Hungary
2005
This study discriminates FDI technology spillover from learning effects. Whenever learning takes time, our model predicts that foreign investors deduct the economic value of learning from wages of inexperienced workers and add it to experienced ones to prevent them from moving to local competitors. Hence, the national wage bill is unaffected by foreign takeovers. In contrast to learning, technology spillover effects occur whenever a worker with MNE experience contributes more to local firms’ than to MNEs’ productivity. In this case, experienced MNE workers are hired by local firms and the host country obtains a welfare gain. We investigate empirically wages, productivity, and worker turnove…
Generalized Logical Operations among Conditional Events
2018
We generalize, by a progressive procedure, the notions of conjunction and disjunction of two conditional events to the case of n conditional events. In our coherence-based approach, conjunctions and disjunctions are suitable conditional random quantities. We define the notion of negation, by verifying De Morgan’s Laws. We also show that conjunction and disjunction satisfy the associative and commutative properties, and a monotonicity property. Then, we give some results on coherence of prevision assessments for some families of compounded conditionals; in particular we examine the Frechet-Hoeffding bounds. Moreover, we study the reverse probabilistic inference from the conjunction $\mathcal…
Homeward Bound FDI: Are Migrants a Bridge over Trouble Finance?
2016
Migrants can lower cross-border investment barriers, help investors by providing information about their homeland and reduce transaction costs by sharing expertise on regulations, customs and procedures. In addition to generating these well-known networking effects, migrants can also provide valuable information about local finance, thereby easing the credit constraints foreign investors faced during the 2007 financial crisis. This paper sheds new light on the underlying mechanisms through which migration may affect foreign investment in the migrant's homeland by distinguishing between the effects on FDI's intensive and extensive margins. Gravity estimates for 140 countries for the period 2…
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 …
ASSESSMENT OF CORRUPTION EFFECT ON FOREIGN INVESTMENT FLOWS
2011
The purpose of the present paper is to investigate the impact of corruption on foreign direct investment (FDI) flows. Using data from the International Monetary Fund, Transparency International and United Nations conference about commerce and development data bases a cross-section econometric model was estimated to evaluate in which way and how strong corruption influence FDI inflows. Econometric modelling covers the period from year 2000 to 2007 and the data about 82 world countries that constitute more than 500 records. The main conclusion of the paper is that corruption has a negative and significant impact on the foreign direct investment inflows. Thus, changes in the level of corruptio…
Home Country Institutions and Outward FDI: An Exploratory Analysis in Emerging Economies
2020
Although the internationalization of economies is driven by specific industry conditions or business-specific differences, the institutions that exist as background conditions directly determine firms&rsquo
The Role of Risk and Information for International Capital Flows: New Evidence from the SDDS
2012
In this paper, we investigate whether better information about the macroeconomic environment of an economy has a positive impact on its capital inflows, namely portfolio and foreign direct investment (FDI). The purpose of our study is to explicitly quantify information asymmetries by compliance with the IMF's Special Data Dissemination Standard (SDDS). For FDI, we fi nd statistically signi cant and robust support for this hypothesis: SDDS subscription increased inflows by an economically relevant magnitude of about 60 percent. We also find evidence of aversion against political and macroeconomic risk as determinants of portfolio and FDI flows and use a non-parametric test for spatial correl…
Foreign direct investment and the rule of law in Africa in the context of legal integration
2018
This essay focuses on the relationship between foreign direct investment (FDI) and the rule of law in the context of legal integration in Africa, outside of the AfCFTA agreement. Specifically, the essay investigates the concept of the rule of law, taking into account its ‘dynamic’ side, that is the power to shape and model the structure of a state using the example of OHADA. The OHADA framework shows that the relationship between foreign direct investment (FDI) and the rule of law is not unilateral but a ‘two-way mutual’ relationship where both actors contribute to the success of the system, adapting to each other in order to achieve their respective goals.
Foreign Direct Investment, Terms of Trade, and Quality Upgrading: What Is So Special about South Asia?
2016
The existing literature has highlighted the positive effect of foreign direct investment (FDI) on export upgrading and associated terms of trade in developing economies. However, the FDI effect has been found to be negative in South Asia. In this paper, we elaborate on the South Asia-specific effect by emphasizing the role of human capital in the positive link between FDI and terms of trade. We argue that education levels in South Asia have lagged behind those in East Asia and other developing regions. This has resulted in a world market integration strategy in South Asia that specializes in less skills-intensive products and generates associated FDI flows. We demonstrate these patterns fo…