Download or read book Foreign Direct Investment Agglomeration and Externalities written by Jacob A. Jordaan and published by Routledge. This book was released on 2016-04-22 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: By critically appraising current theories of both Foreign Direct Investment (FDI) and agglomeration, this book explores the variety of links that exist between these two externality-creating phenomena. Using in-depth empirical research on Mexico, Jacob Jordaan constructs and analyzes several datasets on Mexican manufacturing industries at various geographical scales, creating innovative models on FDI externalities that incorporate explicitly regional considerations. The empirical findings identify both direct FDI spillover effects as well as the effects of agglomeration on these externalities. In extension of this, the analysis also contains analysis of FDI productivity effects that arise through inter-firm linkages between FDI and local Mexican suppliers.

Download or read book Foreign Direct Investment Agglomeration and Externalities written by Jacob Arie Jordaan and published by . This book was released on 2009 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Foreign Direct Investment and Agglomeration written by Raffaello Bronzini and published by . This book was released on 2005 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Externalities Increasing Return to Scale Factor Proportions and Foreign Direct Investment written by Shuiji Kasajima and published by . This book was released on 1997 with total page 686 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Foreign Direct Investment Agglomeration and Externalities written by Jacob A. Jordaan and published by Routledge. This book was released on 2016-04-22 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: By critically appraising current theories of both Foreign Direct Investment (FDI) and agglomeration, this book explores the variety of links that exist between these two externality-creating phenomena. Using in-depth empirical research on Mexico, Jacob Jordaan constructs and analyzes several datasets on Mexican manufacturing industries at various geographical scales, creating innovative models on FDI externalities that incorporate explicitly regional considerations. The empirical findings identify both direct FDI spillover effects as well as the effects of agglomeration on these externalities. In extension of this, the analysis also contains analysis of FDI productivity effects that arise through inter-firm linkages between FDI and local Mexican suppliers.

Download or read book Essays on Foreign Direct Investment Agglomeration and Productivity written by Fariha Kamal and published by . This book was released on 2011 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Spatial Patterns of Foreign Direct Investment written by Kaitlyn Orr and published by . This book was released on 2008 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: Emerging economic theory attempts to explain multinational enterprises' decisions to locate foreign direct investment in certain countries at the expense of others. Recent literature explores the reasons why FDI into a host country may depend on FDI in neighboring countries. This paper extends the previous research by employing an econometric model that measures the relationship between one country's FDI and other geographically-proximate countries' FDI. I conduct a comparative study between the emerging countries of Latin America and Asia to test whether positive agglomeration externalities exist across country borders. By studying agglomeration externalities, I address the question: does the level of FDI in a host country help explain the level of FDI in surrounding countries? I find that within Latin America, an increase in FDI in one country leads to a positive spillover effect on FDI into neighboring countries. This result supports the agglomeration effects hypothesis across borders within Latin America. Asia, however, yields inconclusive results

Download or read book Agglomeration Effects and the Location of Foreign Direct Investment Evidence from French First Time Movers written by Vivien Procher and published by . This book was released on 2009 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the location choice determinants of French first-time investments in Europe, North America and North Africa. Firm locations are examined on two geographical scales, the national and regional level. The final sample comprises 307 location decisions in 27 countries and across 45 regions. Both, location- and firm-specific variables are used for analysing the investment strategy of French firms. The results show that higher market demand and cultural proximity to France increase the likelihood of a particular location to be chosen, whereas higher labour cost and a larger distance between a foreign location and the headquarters deter FDI investments. Manufacturing and older companies are more likely to establish their first subsidiary in Eastern Europe. Furthermore, this study examines the extent to which French investors choose foreign locations that already host a significant number of French firms. The results obtained from regressions with various absolute and relative agglomeration measures suggest that French investors are rather attracted by firm cluster in general, or by the unobserved factors that led to the agglomeration in the first place, than by any nation-specific firm cluster.

Download or read book Foreign Direct Investment Agglomeration and Demonstration Effects written by Frank Barry and published by . This book was released on 2001 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Guided Through the Red Tape Information Sharing and Foreign Direct Investment written by Ragnhild Balsvik and published by . This book was released on 2013 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: What drives the observed tendency of new FDI, other things equal, to be attracted to locations where many other foreign investors are located? One explanation in the literature on FDI location is that expected benefits from agglomeration externalities make firms want to locate in agglomerated regions. Alternatively, potential investors get information about conditions in a host from firms in their own business network that already have experience from that country. We study how Norwegian FDI location choice depends on previous Norwegian presence, using information about institutional quality to separate the impact of information sharing from agglomeration externalities. The impact of previous Norwegian investors is larger in countries with low institutional quality. We interpret this as consistent with the presence of information sharing among Norwegian investors.

Download or read book Agglomeration Effects in Foreign Direct Investment and the Pollution Haven Hypothesis written by Ulrich J. Wagner and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does environmental regulation impair international competitiveness of pollution-intensive industries to the extent that they relocate to countries with less stringent regulation, turning those countries into "pollution havens"? We test this hypothesis using panel data on outward foreign direct investment (FDI) flows of various industries in the German manufacturing sector and account for several econometric issues that have been ignored in previous studies. Most importantly, we demonstrate that externalities associated with FDI agglomeration can bias estimates away from finding a pollution haven effect if omitted from the analysis. We include the stock of inward FDI as a proxy for agglomeration and employ a GMM estimator to control for endogenous, time-varying determinants of FDI flows. Furthermore, we propose a difference estimator based on the least polluting industry to break the possible correlation between environmental regulatory stringency and unobservable attributes of FDI recipients in the cross-section. When accounting for these issues we find robust evidence of a pollution haven effect for the chemical industry.

Download or read book Agglomeration Economies and the Location of Foreign Direct Investment written by Christian A. L. Hilber and published by . This book was released on 2006 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Provision of Public Inputs and Foreign Direct Investment written by Derek K. Kellenberg and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A small open economy model is developed that incorporates direct and indirect effects on multinational location decisions associated with public input provision. It is shown that when agglomeration externalities are present in local intermediate goods markets, public input provision can affect multinational firms directly by lowering the fixed costs of production and indirectly by decreasing the costs of intermediate inputs, but growth is contingent on achieving a critical mass of investment. It is further shown that the effectiveness of a policy of public input provision over a policy of subsidy incentives is critically dependent on key market parameters in the host country.

Download or read book Essays on Foreign Investment Agglomeration Economies and Industrial Policy written by Luosha Du and published by . This book was released on 2012 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since opening its economy to the outside world in late 1978, China has experienced a massive, protracted, and unexpected economic upsurge, which has attracted the attention of a large and diverse group of researchers. China's three-decade economic reforms have reshaped the economic structure from plan to market, through a variety of policy actions, such as openness to foreign investment and efforts to build economic zones. Economic growth and potential technology transfer are indeed the main rationale behind the Chinese government's aggressive efforts over the past three decades to enhance openness and to increase domestic competition. This dissertation consists of three chapters. All chapters study firm behavior and their policy implications. However, the focus of each chapter is different. The first chapter (coauthored with Ann Harrison and Gary Jefferson) studies how institutions affect productivity spillovers from foreign direct investment (FDI) to China's domestic industrial enterprises. The second chapter separates the effect of agglomeration economies on firm performance (measured by total factor productivity) from the impact of competition and better transport infrastructure. The third chapter (coauthored with Philippe Aghion, Mathias Dewatripont, Ann Harrison, Patrick Legros) tests for the complementarity between competition and industrial policy. The first Chapter (co-authored with Ann Harrison and Gary Jefferson) investigates how institutions affect productivity spillovers from foreign direct investment (FDI) to China's domestic industrial enterprises during 1998-2007. We examine three institutional features that comprise aspects of China's "special characteristics": (1) the different sources of FDI, where FDI is nearly evenly divided between mostly Organization for Economic Co-operation and Development (OECD) countries and Hong Kong (SAR of China), Taiwan (China), and Macau (SAR of China); (2) China's heterogeneous ownership structure, involving state- (SOEs) and non-state owned (non-SOEs) enterprises, firms with foreign equity participation, and non-SOE, domestic firms; and (3) industrial promotion via tariffs or through tax holidays to foreign direct investment. We also explore how productivity spillovers from FDI changed with China's entry into the WTO in late 2001. We find robust positive and significant spillovers to domestic firms via backward linkages (the contacts between foreign buyers and local suppliers). Our results suggest varied success with industrial promotion policies. Final goods tariffs as well as input tariffs are negatively associated with firm-level productivity. However, we find that productivity spillovers were higher from foreign firms that paid less than the statutory corporate tax rate. The second chapter separates the effect of agglomeration economies on firm performance (measured by total factor productivity) from the impact of competition and better transport infrastructure. Consequently, this paper primarily addresses the problem of omitted variable bias in estimating the impact of agglomeration economies on firm performance. The results suggest that firm productivity is improved only by the presence of other firms in the same sector (localization economies). The inclusion of information on road construction does not affect the importance of pure localization economies. However, including a measure of competition in the estimation significantly reduces the importance of localization externalities. The results also suggest that both road-building and competition are positively associated with productivity growth. The results for sub-samples indicate that exporting firms and firms financed by foreign investment benefit more from localization externalities than do their non-exporting and domestically-financed counterparts. The third chapter (co-authored with Philippe Aghion, Ann Harrison, Mathias Dewatripont, and Patrick Legros) argues that sectoral state aid tends to foster productivity, productivity growth, and product innovation to a larger extent when it targets more competitive sectors and when it is not concentrated on one or a small number of firms in the sector. A main implication from our analysis is that the debate on industrial policy should no longer be for or against having such a policy. As it turns out, sectoral policies are being implemented in one form or another by a large number of countries worldwide, starting with China. Rather, the issue should be on how to design and govern sectoral policies in order to make them more competition-friendly and therefore more growth-enhancing. Our analysis suggests that proper selection criteria together with good guidelines for governing sectoral support can make a significant difference in terms of growth and innovation performance. Yet the issue remains of how to minimize the scope for influence activities by sectoral interests when a sectoral state aid policy is to be implemented. One answer is that the less concentrated and more competition-compatible the allocation of state aid to a sector, the less firms in that sector will lobby for that aid as they will anticipate lower profits from it. In other words, political economy considerations should reinforce the interaction between competition and the efficiency of sectoral state aid. A comprehensive analysis of the optimal governance of sectoral policies still awaits further research.

Download or read book Understanding the Location of Foreign Direct Investment written by Jonathan Jones and published by Palgrave Macmillan. This book was released on 2016-11-16 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings together previous work by the authors that explores the location of foreign direct investment. It uses a broad range of approaches and quantitative techniques. The issues that are addressed concern the changing nature of FDI location, its determinants, and the role of policy in attracting FDI. The chapters of this book focus on the UK experience, but also analyse the location determinants at a European level. The authors present expert analysis that charts the increase in FDI since the mid-1980s and examines the shift in manufacturing and service location, arguing that these result from policy changes and the creation of the European Single Market. Overall, the book finds that the regional benefit of FDI location is unlikely to be long-lasting, owing both to the nature of plant reinvestment and to the effect of agglomeration economics on FDI location.

Download or read book Foreign Direct Investment and the Determinants of Agglomeration written by Matthieu Penot and published by . This book was released on 2009 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Productivity Consequences of Foreign Direct Investment Connectivity written by Soni Jha and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The primary aim of this dissertation was to examine the implications of conceptualizing Foreign Direct Investment (FDI) as a multilateral and multilevel phenomenon. The first research study in the dissertation examines the implication of a multilateral perspective on FDI in our assessment of the relationship between inward FDI and the economic growth and development of the host countries. This study showed that inward FDI positively impacts the economic growth of the host countries in both the short and long term. The second research study focused on conceptualizing FDI as a multilevel phenomenon. The fundamental premise of this chapter was to explicitly acknowledge that even though the implications of FDI can be observed at the aggregate level, such as host countries, as was the case in the first research study, these consequences emerge from the decisions of the individual firms. Furthermore, the findings of this research study demonstrate that different levels of FDI are interconnected but have different implications for the firm's performance. Drawing upon the existing literature, two considered levels were location-based FDI networks and interfirm collocation networks. Empirical analyses showed that location-based networks are characterized by agglomeration and lead to positive production externalities, while competitive interactions characterize interfirm collocation networks and lead to negative production externalities. Consequently, increasing agglomeration is associated with increasing production output, and increasing competitive interaction is associated with decreasing production output of the firms. In the last research study, we considered how different network externalities, as explicated in the previous chapter, impact the firms' strategic decision-making. This study shows that firm membership in the country-of-origin network helps them make better decisions, while membership in interform collocation networks worsens their decision-making abilities.