foreign direct investment in turkey regional determinants the uneven regional distribution of foreign direct investment fdi in turkey poses an interesting question from the perspective of multinational firms mnfs and policy makers alike this paper focuses on the factors governing the location decisions of mnfs within turkey with specific reference to policy implications using a conditional logit model it is found that agglomeration depth of local financial markets human capital and coastal access dominate location decisions for the aggregate sample of foreign investors in turkey this study reveals no evidence that public investment is successful in attracting mnfs to particular regions also importantly the location determinants vary dramatically by broad industrial category investment composition and origin country characteristics including income category and region

foreign firm entry in an open economy the case of portugal the purpose of this paper is to analyse the entry process of foreign direct investment fdi in portuguese industrial sectors portugal presents an interesting case where firms enter to take advantage of export opportunities the results suggest that foreign firms possess the ability to overcome existing entry barriers that affect domestic firms apparently foreign firms have different expectations about profitability than domestic firms possibly due to foreign firms export orientation to the rest of the european union eu they appear to desire industries where other foreign firms have clustered above all it appears that these foreign firms enter industries to exploit portugal s chief location advantage in western europe low wages portugal s fdi experience is relevant to other countries that have opened their economies to greater trade and investment and attracted export oriented firms

income redistribution in a common labor market when households are mobile among jurisdictions income redistribution by individual jurisdictions creates fiscal externalities a model of interjurisdictional migration is used to study the nature of this redistributive externality analysis of optimal redistribution and optimal corrective subsidies from higher level governments shows that benefit levels for the recipients of income transfers and tax rates on mobile taxpayers should be equalized across jurisdictions a system of jurisdictions with a common labor market can achieve welfare improvements through coordination of domestic redistributive policy or through the intervention of a higher level government copyright 1991 by american economic association

the institutional reforms debate and fdi flows to the mena region the best ensemble summary this paper empirically examines the theoretical debate on the adoption of a best approach to reforming institutions identified by rodrik 2008 in the context of property rights protection and fdi flows to eight mena countries the first best approach comprises strengthening domestic institutional functions only while the second best comprises in addition entering into force bilateral investment treaties and the interaction between functions and treaties empirically both approaches to reducing investment expropriation risk encourage fdi flows the positive effect of the second best approach depends on the success of the first best approach suggesting the two approaches are complementary

human capital and fdi inflow an assessment of the african case summary this study assesses the role of human capital hk on fdi inflows to sub saharan africa it uses panel data for the period 1980 2012 to asses if changing skill needs influence fdi inflows several measures of hk are used to assess whether the quality of labor explains fdi flows over the study period various versions of an fdi model were estimated and the results show that all measures of hk have a significant influence on fdi as are the traditional variables there is no evidence of the increasing importance of hk on fdi over time probably reflecting the type of fdi flowing into ssa

migration and income redistribution responsibilities this study examines whether afdc benefits determine or discourage state to state migration flows in the united states a pooled cross section time series model is developed to estimate afdc benefits in a state and recipients and whether benefits in one state affect benefits in other states a second model using data from the 1980 census and the panel study of income dynamics estimates migration of afdc recipients and the level of benefits in in migration and out migration states both models indicate that small but statistically significant amounts of migration occur which may be quite important but only in the long run movers although small in number are much more likely to move to a state with higher benefits states perceive this migration as important indicating that states should have less control and the federal government more control over income redistribution

importing the poor welfare magnetism and cross border welfare migration i test for welfare induced migration by comparing afdc participation in border counties to interior counties in the same state if migration costs are lower for border county residents border counties on the high benefit side of a state border should have higher welfare participation relative to the state s interior counties border counties on the low benefit side should have lower welfare participation relative to the state s interior counties the results obtained using county level data from 1970 90 indicate that having a neighbor with benefits that are 100 lower increases afdc expenditures in border counties by 4 0 6 8 percent relative to interior counties

relationships between economic growth foreign direct investment and trade evidence from china this study investigates the causal links between trade economic growth and inward foreign direct investment fdi in china at the aggregate level the integration and cointegration properties of quarterly data are analysed long run relationships between growth exports imports and fdi are identified in a cointegration framework in which this paper finds bi directional causality between economic growth fdi and exports economic development exports and fdi appear to be mutually reinforcing under the open door policy

policy making and energy infrastructure change a nigerian case study of energy governance in the electricity sector abstract this paper focusses on investigating the underlying mechanisms and influences of the policy decision making process and how it affects and impacts the governance of the nigerian energy industry and energy infrastructure provisions in depth semi structured interviews were used all interviewees had been involved directly or indirectly in energy infrastructure policy decisions in nigeria five key themes subsequently emerged as salient intra country induced influences that were affecting the governance and performance of the nigerian energy sector 1 competencies i e practical knowledge of energy policy making 2 expectations i e past present and forecasted future expectations from the energy industry 3 legislation i e institutionalized and unwritten rules procedures 4 future visions i e future vision of the energy industry energy market 5 recruiting experts i e recruiting new energy and public policy makers in addition three major inter country induced influences were also identified 1 the changing dynamics of international and foreign aid 2 the united nations sustainable development goals and 3 the paris agreements on climate change the paper concludes by highlighting the policy implications of these influences and the consequences for policy makers in the governance of the energy industry in ensuring a secured energy future

foreign direct investment and growth in india a cointegration approach the two way link between foreign direct investment and growth for india is explored using a structural cointegration model with vector error correction mechanism the existence of two cointegrating vectors between gdp fdi the unit labour cost and the share of import duty in tax revenue is found which captures the long run relationship between fdi and gdp a parsimonious vector error correction model vecm is then estimated to find the short run dynamics of fdi and growth our vecm model reveals three important features a gdp in india is not granger caused by fdi the causality runs more from gdp to fdi b trade liberalization policy of the indian government had some positive short run impact on the fdi flow and c fdi tends to lower the unit labour cost suggesting that fdi in india is labour displacing

technology sourcing versus technology exploitation an analysis of us foreign direct investment flows the traditional paradigm of foreign direct investment fdi suggests that fdi is undertaken principally to exploit some firm specific advantage in a foreign country which provides a locational advantage to the investor however recent theoretical work suggests a model of fdi in which the motivation is not to exploit existing technological advantages in a foreign country but to access such technology and transfer it from the host economy to the investing multinational corporation via spillover effects this paper tests the technology sourcing versus technology exploiting hypotheses for a panel of sectoral fdi flows between the united states and major oecd nations over a 15 year period the research makes use of patel and vega s research policy 28 145 55 1999 taxonomy of sectors which are likely a priori to exhibit technology sourcing and exploiting behaviour respectively while there is evidence that fdi flows into the united states are attracted to r and d intensive sectors very little support is found for the technology sourcing hypothesis either for inward or outward fdi flows the results suggest that in aggregate firm specific ownership effects remain powerful determinants of fdi flows

making sense of institutions as a factor shaping economic performance abstract there has recently been a resurgence of interest in how institutions affect economic performance a review of this literature reveals that the concept of an institution means different things to different scholars both within economics and across the social sciences we discuss what factors unify the different definitions of institutions and develop a concept of institutions useful for the analysis of economic performance and economic growth in particular specifically we develop the notion of institutions as standard social technologies economic growth results from the co evolution of physical and social technologies

foreign direct investment in the uk evidence from a disaggregated panel of the uk food sector most empirical studies of foreign direct investment fdi typically use either a cross sectional capturing ownership specific and industry determinants or time series capturing the determinants of fdi over time approach panel data techniques however have the advantage of combining both aspects of the data using disaggregated panel data for the uk food sector a leading recipient of fdi in the uk the results in this paper highlight the predominance of ownership specific and industry characteristics in determining the presence of foreign owned firms in this sector while macro economic factors have a more marginal effect

patterns and strategies of foreign direct investment the case of japanese firms this paper is to study globalization motives and strategies of japanese manufacturing industries by analyzing the causes and patterns of foreign direct investment fdi of japanese manufacturing firms we use regression analysis to determine internally driving out factors and externally inducing factors japanese fdi strategy has gone through three different stages from natural resource seeking investment in the 1950s and 1960s to market expansion investment in the 1970s and 1980s and to a combination of cost reducing low cost labor seeking investment and market penetrating investment in the 1990s our findings show that japanese fdi in asia and other developing countries tends to be in labor intensive sectors where japanese firms are losing their comparative advantages at home the main motive for fdi into these regions is low cost resource seeking on the other hand japanese fdi in the us and europe tends to be knowledge intensive sectors where japanese firms attempt to internalize transaction and i

explaining african economic performance africa has had slow growth and a massive exodus of capital in many respects it has been the most capital hostile region we review and interpret the aggregate level and microeconomic literatures to identify the key explanations for this performance there is a reasonable correspondence of the two sets of evidence pointing to four factors as being important these are a lack of openness to international trade a high risk environment a low level of social capital and poor infrastructure these problems are to a substantial extent attributable to government behaviour and the paper includes a review of the political economy literature which addresses that behaviour

on the link between japanese oda and fdi in china a microeconomic evaluation using conditional logit analysis this study investigates the effectiveness of japan s official development assistance in promoting foreign direct investments inflows in the case of the people s republic of china conditional logit analysis using province level statistics from 1980 to 1999 shows that japanese aid flows did have a significant positive impact on private investors location choice even though other profit maximizing factors such as the level of economic activity had a leading spillover effect in a context of growing scarcity of aid the study concludes by asserting the importance of a complementary process in which foreign aid is aimed at enhancing the development of infrastructures acting as a pre requisite for future direct investments finally japan providing an interesting case study we stress the need for a better cooperation between public and private sectors in development assistance programmes

stagnating energy efficiency in the swedish building sector economic and organisational explanations the development towards higher energy efficiency in the swedish building sector stagnated in the late 1980s and 1990s in new buildings the average specific energy use for heating is twice as high as in the best performing buildings 20 years ago by combining econometric studies and interviews with actors in the building sector we analyse the underlying economic and organisational causes for this development in the stock of buildings specific energy use for heating kwh m2 yr has a high correlation with increasing energy prices and price elasticities have not changed markedly over time this implies that the stagnation to a large extent can be explained by energy price trends on the contrary in new buildings the correlation between energy prices and specific energy use is much weaker one important cause of low sensitivity to price changes is that information about the life cycle cost lcc of different investment alternatives is often not available to the involved actors the most common investment criterion is instead the requirements of the national building energy standard which has developed into a norm rather than a minimum for energy performance in this paper we also discuss potential improvements in the learning processes within the sector

is there a race to the bottom in the setting of welfare benefit levels evidence from a policy intervention abstract in this paper we investigate whether local governments react on the welfare benefit levels in neighboring jurisdictions when setting their own benefit levels we solve the simultaneity problem arising from the welfare game by utilizing a policy intervention more specifically we use a centrally geared exogenous placement of a highly welfare prone group refugees among swedish municipalities as an instrument the iv estimates indicate that there exists a race to the bottom and that the effect is economically as well as statistically significant if the neighboring municipalities decrease their welfare benefit level by 100 sek a municipality decreases its benefit level with approximately 41 sek this result is robust to several alternative model specifications

investigating geography and institutions as determinants of foreign direct investment in africa using panel data this article uses a cross country econometric approach to identify the determinants for foreign direct investment fdi in africa the contribution is 3 fold firstly we recognize that the estimation techniques used elsewhere such as ordinary least squares may be flawed we therefore use a dynamic one step generalized method of moments gmm estimator due to arellano and bond 1991 the gmm estimates identified a number of robust determinants of fdi namely government consumption inflation rate investment governance political stability accountability regulatory burden rule of law and initial literacy it is concluded that geography does not seem to have a direct influence on fdi flows to africa neither market seeking nor re exporting motives of fdi seem to dominate with different policy instruments being significant in the different specifications this does not discount the importance of good policies but probably indicates the importance of good policies made by good institutions institu

does africa grow differently abstract this paper extends the analysis of african economic growth in two directions first by challenging the assumption that growth effects of particular explanatory variables are the same in africa as elsewhere and second by measuring indirect contributions to growth of initial conditions as they influence explanatory variables in a basic growth regression robust regression analysis shows that for africa being closed to trade is more costly to growth natural resource abundance is more detrimental to institutional development and several factors that reduce population growth and enhance institutional quality outside africa fail to show such beneficial effects within africa

determinants of foreign direct investment empirical evidence from eu accession candidates this study examines bilateral foreign direct investments fdi between the members of the european union and eight central and east european candidate ceec economies in transition awaiting accession into the european union eu crosssection data were obtained for bulgaria czech republic estonia hungary poland romania slovak republic and slovenia for 1997 once the main characteristics of fdi recipient and donor nations are identified in a bilateral framework it will be feasible to predict future fdi inflows this study reveals that the key determinants of fdi inflows in ceecs are size of the host economy host country risk labour costs in host country and openness to trade countries that are receiving fewer foreign investments could make themselves more attractive to potential donor nations by focusing on some of the key determinants identified by this study

foreign direct investment industrial restructuring and the upgrading of polish exports this paper poses a central question in relation to the economic structural effect of foreign direct investment fdi with polish manufacturing as an empirical case how fdi coincides with the technology intensity of polish exports a short review of the available literature discusses critically the possibility of establishing one sided cause effect relationships between trade and fdi subsequently the empirical analysis investigates what role incoming fdi appears to have played in relation to polish export specialization over the period 1989 1996 results indicate that fdi has affected positively the technology intensity of the polish export base

determinants of inward investment in the uk a panel analysis this paper develops an inter industry model of inward investment using a fixed effects approach this demonstrates that when inward investment is investigated in such a framework previous findings relating to the specification of measures of location advantage and ownership advantages no longer hold this also shows that there are some industries that have attracted significant inward investment over time and continue to do so while others are noticeably less successful reasons for this and potential policy measures are briefly discussed

analysing the determinants of us direct investment in mexico in this paper a simple model of foreign direct investment is developed and tested on investment flows from the usa to mexico between 1967 and 1994 using cointegration analysis domestic demand and relative factor costs are found to influence direct investment flows suggesting support for both the cheap labour and market size hypotheses the short run dynamics of the model indicate that exchange rate movements have an effect on the timing of the investment decision