Search results for "jel:F2"
showing 10 items of 21 documents
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…
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.
BRAIN DRAIN MIGRATION TYPE. WHAT CAUSES BRAIN DRAIN PHENOMENON?
2015
The phenomenon of migration of intellectuals, also known as "brain drain", we mean that constant transfer of highly qualified persons, especially in generally into less developed countries, to those states that have a developed economy. Most often, aspects of the social environment of home country, are the triggering factor in the migration decision intellectuals. Reducing the negative impact of brain drain can be achieved through the transfer of "know-how" through collaboration between intellectuals in the Diaspora with those of the country of origin in some projects.
Are Energy Market Integrations a Green Light for FDI?
2015
This paper studies the effect of energy market integration (EMI) on foreign direct investment (FDI). EMIs diminish energy uncertainty and price volatility in the host country and affect FDI through two channels: first, by harmonizing energy prices and, second, by reducing price dispersion. FDI may, as a result, increase both within and outside the EMI area, through energy stability mechanisms and price mechanisms, respectively. An empirical application on a global dataset including bilateral FDI data, during 2003-2012, using the gravity equation, shows that the integration of Portugal and Spain's electricity market in 2007 increased the amount of FDI's participants. Additionally, a positive…
Gouvernance contractuelle et cognitive des alliances internationales en R&D
2009
Notre objectif est d’expliquer le choix des firmes multinationales entre les alliances avec prise de participation et les alliances sans prise de participation pour investir en R&D à l’étranger. Les déterminants du choix peuvent être contractuels ou cognitifs. Nos résultats montrent que les alliances sans prise de participation sont choisies en cas d’une spécificité des actifs et de fréquence moyennes ou faibles des transactions et au cas où les firmes parentes détiennent des capacités en R&D similaires. Nos résultats montrent aussi que les firmes multinationales n’optent pas nécessairement pour les alliances à fort degré d’interdépendance organisationnelle dans un objectif d’exploration de…
Le choix de la forme organisationnelle en matière d’investissement en R&D à l’étranger par les firmes multinationales:la contribution de la théorie d…
2008
(VF)L’objectif de ce papier est d’évaluer la contribution de la théorie des coûts de transaction à l’explication du choix du mode de gouvernance des activités de R&D à l’étranger par les firmes multinationales. Nous avons identifié principalement trois grandes formes organisationnelles en matière d’investissement en R&D à l’étranger:l’internalisation totale, les alliances en R&D et l’externalisation totale (licences unilatérales). Suite à une étude quantitative par le biais d’un questionnaire diffusé auprès de 769 firmes multinationales, nos principaux résultats montrent que le choix de l’internalisation des activités de R&D est favorisé en cas de fréquence élevée des transactions, le choix…
The influence of culture on the economic freedom and the international business
2006
The firms who decide to expand their business in an international environment must modify their management style through international management. Certainly, international management must adapt their on functions to the different framework of the business development. The culture is a cardinally factor, being an essential component in the success equation of multinational companies. The culture, the habits and the attitudes became points of major interests on the global market. Their importance is obvious through numerous "blunders" which find out in international trade and international. For the success of international business the economies must bees free, but the economic freedom is inf…
Multinationals, R&D and productivity: Evidence for UK Manufacturing firms
2010
In this study, we analyze multinationality (domestic-based firms versus multinationals) and foreignness (foreign versus domestic firms) effects in the returns of R&D to productivity. We follow a two-step strategy. In the first step, we consistently estimate firm's productivity by GMM and numerically compute the sample distribution of the R&D returns. In the second step, we use stochastic dominance techniques to make inferences on the multinationality and foreignness effects. Results for a panel of UK manufacturing firms suggest that multinationality and foreignness effects operate in an opposite way: whilst the multinationality effect enhances R&D returns, the foreignness diminishes them. C…