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Author: Yong Joon Jang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In this paper, we explicitly address the role of comparative advantage in effects of outward FDI on domestic productivity, both theoretically and empirically. In the theoretical framework, we place Irarrazabal, Moxnes and Opromolla's (2009) outward FDI model into Bernard, Redding and Schott's (2007) framework of international trade with heterogeneous monopolistically competitive firms and comparative advantage; and show that ex ante high average industry productivity triggered by firm self-selection enhances ex post average industry productivity during the process of increase in FDI. Using Korean industry-level data from 1992 to 2008, we also empirically test our theoretical predictions using the fixed effect model as a benchmark model, followed by system GMM estimation methods for sensitivity analysis. Our empirical findings suggest that Korean outward FDI is positively correlated with domestic productivity and this link is likely to take place in those sectors above median competitiveness measured as export-based RCA (Revealed Comparative Advantage). Thus, we find that the empirical results were consistent with previous theoretical predictions as well as our analysis.
Author: Yong Joon Jang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In this paper, we explicitly address the role of comparative advantage in effects of outward FDI on domestic productivity, both theoretically and empirically. In the theoretical framework, we place Irarrazabal, Moxnes and Opromolla's (2009) outward FDI model into Bernard, Redding and Schott's (2007) framework of international trade with heterogeneous monopolistically competitive firms and comparative advantage; and show that ex ante high average industry productivity triggered by firm self-selection enhances ex post average industry productivity during the process of increase in FDI. Using Korean industry-level data from 1992 to 2008, we also empirically test our theoretical predictions using the fixed effect model as a benchmark model, followed by system GMM estimation methods for sensitivity analysis. Our empirical findings suggest that Korean outward FDI is positively correlated with domestic productivity and this link is likely to take place in those sectors above median competitiveness measured as export-based RCA (Revealed Comparative Advantage). Thus, we find that the empirical results were consistent with previous theoretical predictions as well as our analysis.
Author: Yong-joon Jang
Publisher:
ISBN: 9788932240268
Category : Comparative advantage (International trade)
Languages : en
Pages : 37
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Book Description
Author: Yong Joon Jang
Publisher: KIEP
ISBN: 9788932242286
Category : Comparative advantage (International trade)
Languages : en
Pages : 37
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Book Description
Author: Gary Clyde Hufbauer
Publisher: Peterson Institute for International Economics
ISBN: 0881326682
Category : Business & Economics
Languages : en
Pages : 149
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Book Description
It is not in the US interest to adopt tax and regulatory policies that would discourage global engagement by US multinational corporations (MNCs). Research presented in this book shows that the expansion of foreign affiliates of US MNCs is positively associated with more production, greater employment, higher exports, and more research and development (R&D) in the United States. These findings suggest that less investment abroad by US firms would weaken—not strengthen—the US economy. This analysis by no means implies that there are only winners and no losers from outward investment. Changing patterns of MNC investment, like changing patterns of technology and production more generally, contribute to job losses and dislocations for some workers and to new opportunities for others. To benefit the US economy and US workers most broadly, the United States will want to search for ways to strengthen the appeal of the United States as a base for the operations of international firms. High among the recommendations to accomplish this, the United States should adopt a territorial tax system, like the great majority of developed countries.
Author: Robert E. Lipsey
Publisher:
ISBN:
Category : Investments, American
Languages : en
Pages : 24
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Book Description
Inward and outward direct investment (FDI) stocks and flows tend to go together, across countries and over time. The countries that invest extensively abroad are usually also large recipients of FDI. There is little evidence that flows of FDI are a major influence on capital formation. That lack of effects suggests that financing capital formation is not a primary role of FDI. FDI transfers the ownership of existing productive assets from one set of owners to others willing to pay more for them, possibly from less efficient to more efficient owners. One fact that suggests this function is that outward U.S. FDI production and outward minus inward production tends to be concentrated in industries of U. S. comparative advantage. It is not in industries of U.S. comparative disadvantage, as might be expected if FDI were primarily a method of relocating production to more suitable locations. Within individual broad industry groups, U.S. FDI tends to move to countries with comparative disadvantages in trade relative to the United States in machinery industries. In resource-intensive industries, however, it moves to countries with comparative advantages in trade relative to the United States. The difference suggests that company comparative advantages dominate investment in machinery, but country comparative advantages dominate in resource-intensive industries. If FDI is transferring assets and production from less efficient to more efficient owners and managers, inward FDI can be viewed in the recipient countries as freeing capital that had been frozen in industries that the owners would prefer to leave. It permits the former owners to allocate their capital in more desirable and profitable ways. Outward FDI permits a home country's firms to optimally exploit their skills and comparative advantages, perhaps lost to the home countries, but retained by the country's firms
Author: United Nations
Publisher: UN
ISBN: 9789211217599
Category : Political Science
Languages : en
Pages : 0
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Book Description
In 2010, the Latin American and Caribbean region showed great resilience to the international financial crisis and became the world region with the fastest-growing flows of both inward and outward foreign direct investment (FDI). The upswing in FDI in the region has occurred in a context in which developing countries in general have taken on a greater share in both inward and outward FDI flows. This briefing paper is divided into five sections. The first offers a regional overview of FDI in 2010. The second examines FDI trends in Central America, Panama and the Dominican Republic. The third describes the presence China is beginning to build up as an investor in the region. Lastly, the fourth and fifth sections analyze the main foreign investments and business strategies in the telecommunications and software sectors, respectively.
Author: Robert E. Baldwin
Publisher: University of Chicago Press
ISBN: 0226036553
Category : Business & Economics
Languages : en
Pages : 560
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Book Description
People passionately disagree about the nature of the globalization process. The failure of both the 1999 and 2003 World Trade Organization's (WTO) ministerial conferences in Seattle and Cancun, respectively, have highlighted the tensions among official, international organizations like the WTO, the International Monetary Fund (IMF), the World Bank, nongovernmental and private sector organizations, and some developing country governments. These tensions are commonly attributed to longstanding disagreements over such issues as labor rights, environmental standards, and tariff-cutting rules. In addition, developing countries are increasingly resentful of the burdens of adjustment placed on them that they argue are not matched by commensurate commitments from developed countries. Challenges to Globalization evaluates the arguments of pro-globalists and anti-globalists regarding issues such as globalization's relationship to democracy, its impact on the environment and on labor markets including the brain drain, sweat shop labor, wage levels, and changes in production processes, and the associated expansion of trade and its effects on prices. Baldwin, Winters, and the contributors to this volume look at multinational firms, foreign investment, and mergers and acquisitions and present surprising findings that often run counter to the claim that multinational firms primarily seek countries with low wage labor. The book closes with papers on financial opening and on the relationship between international economic policies and national economic growth rates.
Author: Keith Eugene Maskus
Publisher:
ISBN:
Category : Comparative advantage (International trade)
Languages : en
Pages : 30
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Book Description
Author: Gábor Hunya
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 280
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Book Description
Hunya (research economist at The Vienna Institute for International Economic Studies) explores whether foreign direct investment can contribute to the competitiveness of industries in central Europe and to narrowing the gap between these transition economies and countries within the European Union. Examining empirical data from the Czech Republic, Hungary, Slovakia, and Slovenia, he argues that foreign investment enterprises have higher allocative efficiency, promote macro- and microeconomic restructuring, and foster the restructuring of the manufacturing sector in accordance with the host countries' comparative advantages. Some negative factors are explored, but Hunya argues that, on the whole, foreign direct investment leads to greater competitiveness. Annotation copyrighted by Book News, Inc., Portland, OR
Author: Jin Zhong
Publisher:
ISBN:
Category : China
Languages : en
Pages : 56
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Book Description
