causality between fdi and financial market development evidence from emerging markets this paper studies the causal relationship between foreign direct investment fdi and financial market development fmd using panel data from emerging markets most studies of the relationship between fdi and fmd have focused on the role of fmd in the link between fdi and economic growth with no deep understanding of direct causality between fdi and fmd especially in emerging markets where financial markets are in the development stage we document bidirectional causality between fdi and stock market development indicators for banking sector development indicators the relationship is ambiguous and inconclusive care is therefore needed when analysing the relationship between fmd and fdi as results may depend on whether the fmd variables used to evaluate causality are stock market or banking sector development indicators

efficiency performance of current account bop flows in advanced world economies considering ghg emissions abstract current account ca imbalances reveal the unequal trade and foreign direct investment t fdi flows between various countries this paper investigates the performance of the ca component of the balance of payments bop of major advanced economies following the recent global financial and economic crisis 2013 2017 using a data envelopment analysis dea second stage approach slack based inefficiency sbi dea models are proposed using both a conventional perspective and a sustainability perspective that consider greenhouse gas ghg emissions as an undesirable output the efficiency assessment aims to identify output slacks i e exports and income inflows shortfalls as well as input slacks i e import and income outflows excesses in the second stage explanatory factors of the observed ca inefficiencies have been investigated using regression models under frequentist and bayesian frameworks although some differences exist between the conventional and sustainability scenarios regarding the negative effects of trade diversification and external debt and energy dependency on ca inefficiency in both scenarios the results indicate links between ca inefficiency and geographical regions socio economic development and the burden of customs procedures

monetary union in west africa and business cycles synchronicity new evidence in the light of the initiative of the west african monetary zone wamz to introduce a common currency by 2020 this paper investigates the intricacies of the business cycles synchronicity among the six countries given i the rising importance of trade and cooperation with china ii the consideration of the euro as a potential anchor currency and a vehicle for trade with the eurozone and iii the importance of nigeria as the largest country of the group and the main supplier of oil we investigate the relative importance of these three major players in having their business cycles linked with the group in addition we investigate the underlying determinants of the business cycles synchronicity among the wamz countries on a pairwise basis results show a clear dominance of china s business cycle synchronicity with the wamz over europe s and nigeria s trade integration emerges as the key underlying factor of the common cycle observed

technical performance and firm size analysis of patents and publications of u s firms this study focuses on the scientific output of firms of different sizes in different industries in the u s both patents and papers and publications are used as measures of technical output data from two samples of firms one consisting of 225 large firms annual sales at least 250 million and minimum annual r d budget of 1 million and the other consisting of 248 small and medium sized firms annual sales between 10 to 200 million and annual r d budget at least 10 thousand have been presented here the study shows that determinants of r d expenditure are different in firms of different sizes for the large firms r d expenditure depends on net income as well as its size measured in terms of annual sales for small size firms r d expenditure is closely related with sales rather than the net income for large firms r d expenditure is related to both sales and income the latter being more important than the former the two output measures patents and papers are correlated but the correlation is not a very strong one for small firms patent and papers are correlated significantly with both r d expenditure as well as annual sales the firm s growth is not linked with patents on the contrary there is a negative relationship between patent and r d growth and patent and income growth in the case of small firms papers are not linked with growth variables for small firms finally this study confirms the hypothesis that small firms are more productive in innovation than the large firms small firms are more efficient than their larger competitors in terms of patents and papers per million dollars of r d expenditure

on the causal links between fdi and growth in developing countries we analyse the granger causal relationships between foreign direct investment fdi and gdp in a sample of 31 developing countries covering 31 years using estimators for heterogeneous panel data we find bi directional causality between the fdi to gdp ratio and the level of gdp fdi has a lasting impact on gdp while gdp has no longrun impact on the fdi to gdp ratio in that sense fdi causes growth furthermore in a model for gdp and fdi as a fraction of gross capital formation gcf we also find long run effects from fdi to gdp this finding may be interpreted as evidence in favour of the hypotheses that fdi has an impact on gdp via knowledge transfers and adoption of new technology

inflation and asset returns in a monetary economy postwar u s data are characterized by negative correlations between real equity returns and inflation and by positive correlations between real equity returns and money growth these patterns are closely matched quantitatively by an equilibrium monetary asset pricing model the model also implies negative correlations between expected asset returns and expected inflation and it predicts that the inflationasset return correlation will be more strongly negative when inflation is generated by fluctuations in real economic activity than when it is generated by monetary fluctuations the co movements of real asset returns inflation and money growth have been studied extensively over the past fifteen years table i displays some of the statistical properties of these series using quarterly u s data from 1959 to 1990 note first the significantly negative correlation between real equity returns and inflation note also the negative correlation between inflation and the ex post real return to nominally riskless bonds while this fact is not particularly surprising numerous studies conclude that the correlations between ex ante real asset returns and expected inflation are also negative 2 in contrast to these patterns the correlation between money growth and real equity returns is weakly positive in the data while the correlation between money growth and the real bond return is virtually zero initially these empirical patterns were viewed as anomalies negative correlations between inflation and ex post real stock returns contradict the traditional view that equities ought to act as an inflation hedge 3 negative correlations between expected inflation and ex ante real returns violate the

the management of multinational r d a neglected topic in international business research despite the growing involvement of multinational firms in foreign based r d during the past fifteen years little research has been done on why and how firms internationalize their r d and what effects it might have on firm competitiveness the present paper calls attention to this neglect and seeks to advance the management of multinational r d as an area of study for international business scholars to this end the paper first examines the key contributing factors to increased foreign r d investments among multinationals it then reviews the research literature to find out what we presently know about the management of multinational r d finally a research agenda is proposed to provide a foundation and stimulus for future investigations seven research directions are recommended with an emphasis on interdisciplinary inquiry and a focus on issues that have both theoretical and practical significance

the spatial interdependence of fdi in latin america summary using a sample of 17 latin american countries with observations during 1986 2006 two forms of spatial interdependence of foreign direct investment fdi are explored 1 surrounding market potential and 2 spatial autocorrelation we find that surrounding market potential has a positive significant effect on net fdi but there is no evidence that fdi is spatially autocorrelated other factors that show a significant positive effect on fdi include control of corruption and exports of raw materials when considering only fdi inflows from the us we find that fdi is spatially autocorrelated and that surrounding market potential is not significant

a time series analysis of representative agent models of consumption andleisure choice under uncertainty this paper investigates empirically a model of aggregate consumption and leisure decisions in which utility from goods and leisure is nontime separable the nonseparability of preferences accommodates intertemporal substitution or complementarity of leisure and thereby affects the comovements in aggregate compensation and hours worked these cross relations are examined empirically using postwar monthly u s data on quantities real wages and the real return on the one month treasury bill the estimated values of the parameters governing preferences differ significantly from the values assumed in several studies of real business models several possible explanations of these discrepancies are discussed

are tax havens good neighbours fdi spillovers and developing countries abstractthis paper investigates the impact of tax havens on non tax haven countries in terms of foreign direct investment fdi we analyze the importance of agglomeration effects by including fdi inflow levels in tax havens and capture geographic spillovers by measuring proximity to the nearest tax haven our analysis yields several interesting findings first using panel data for 142 countries we find evidence of positive spillovers from tax havens to nearby developing countries but not to nearby developed countries second restricting our panel to developing countries we find the positive effect of tax haven fdi on developing countries to be robust third we find that geographic distance matters for financial flows developing countries which are the closest to a nearby tax haven benefit the most in terms of fdi inflows this result is robust to accounting for spatial interdependence of fdi

comment sequential moment restrictions in panel data 1992 comment sequential moment restrictions in panel data journal of business economic statistics vol 10 no 1 pp 20 26

is the relationship between financial development and economic growth monotonic evidence from a sample of middle income countries summary we revisit the relationship between financial development and economic growth in a panel of 52 middle income countries over the 1980 2008 period using pooled mean group estimations in a dynamic heterogeneous panel setting we show that there is an inverted u shaped relationship between finance and growth in the long run in the short run the relationship is insignificant this suggests that too much finance can exert a negative influence on growth in middle income countries the finding of a non monotonic effect of financial development on growth is confirmed by estimating a threshold model

human development concepts and measurement abstract the human development report hdr of the undp argues for a new approach to the definition measurement and achievement of development this paper traces the intellectual origins of the hdr in the recent literature on poverty entitlements and capability the paper also deals in particular with the human development index hdi and explains its rationale and its future revisions

the contribution of foreign direct investment to clean energy use carbon emissions and economic growth the paper investigates the contributions of foreign direct investment fdi net inflows to clean energy use carbon emissions and economic growth the paper employs cointegration tests to examine a long run equilibrium relationship among the variables and fixed effects models to examine the magnitude of fdi contributions to the other variables the paper analyzes panel data of 19 nations of the g20 from 1971 to 2009 the test results indicate that fdi has played an important role in economic growth for the g20 whereas it limits its impact on an increase in co2 emissions in the economies the research finds no compelling evidence of fdi link with clean energy use given the results the paper discusses fdi s potential role in achieving green growth goals

broadband penetration and economic growth nexus evidence from cross country panel data this article investigates whether there are granger causal relationships between broadband penetration degree of urbanization foreign direct investment and economic growth using a panel data set covering the g 20 countries for the period 1998 2011 using our multivariate framework we first find that all of the variables are cointegrated our findings further reveal a network of causal connections between the variables including short run bidirectional causality between broadband penetration and economic growth among the more developed countries within the g 20 on the other hand for the developing countries within the g 20 there is evidence of unidirectional causality from economic growth to broadband penetration

political governance civil liberties and human capital evaluating their effect on foreign direct investment in emerging and developing economies we study the influence of a country s political governance on its attractiveness to foreign direct investors we argue that democracy is not a unidimensional concept and that the effect of host country political governance on incoming foreign direct investment fdi differs depending on whether fdi originates from a democratic or an autocratic country we also hypothesize that the effect of civil liberties depends on the motivations of investing multinational enterprises mnes and that human capital moderates this relationship we test our hypotheses on a sample of 35 000 investments in emerging and developing countries between 2003 and 2013

on the intergenerational allocation of natural resources it is known hartwick and others that under standard assumptions a society that invests in reproducible capital the competitive rents on its current extraction of exhaustible resources will enjoy a consumption stream constant in time it is shown here that this result can be interpreted as saying that an appropriately defined stock of capital including the initial endowment of resources is being maintained intact and that consumption can be interpreted as the interest on that patrimony this seems like a useful rule of thumb for policy

economic reforms fdi and economic growth in india a sector level analysis summary booming foreign direct investment fdi in post reform india is widely believed to promote economic growth we assess this proposition by subjecting industry specific fdi and output data to granger causality tests within a panel cointegration framework it turns out that the growth effects of fdi vary widely across sectors fdi stocks and output are mutually reinforcing in the manufacturing sector whereas any causal relationship is absent in the primary sector most strikingly we find only transitory effects of fdi on output in the services sector however fdi in the services sector appears to have promoted growth in the manufacturing sector through cross sector spillovers

the impact of us sanctions on poverty abstract in this paper we analyze the effect of us economic sanctions on the target countries poverty gap during the period 1982 2011 econometrically we employ a matching approach to account for differences in the countries economic and political environment and the likelihood of being exposed to us sanctions our results indicate that us sanctions are adversely affecting those living in poverty as we observe a 3 8 percentage point pp larger poverty gap in sanctioned countries compared to a control group that is as close as possible in terms of observable pretreatment characteristics in addition we show that the impact of sanctions on poverty i increases with the severity of sanctions ii is larger for multilateral sanctions than for unilateral sanctions imposed by only the united states and iii is long lasting as the poverty gap increases over the first 21 years of a sanction regime

the role of exports fdi and imports in development evidence from sub saharan african countries the disappointing economic performance of sub saharan african ssa economies in the late 1980s prompted reforms in foreign trade and foreign direct investment fdi in the early 1990s using the autoregressive distributed lag ardl approach and pedroni panel estimation procedures that allow for heterogeneity this study found that exports and fdi have a significant impact on economic growth granger type causality tests show the interrelatedness of exports fdi imports and income variables the results also provide evidence of a two stage causal chain of exports imports and income this article calls for more market oriented policy reforms in ssa countries

global capital flows and financing constraints firms often cite financing constraints as one of their primary obstacles to investment global capital flows by bringing in scarce capital may ease the financing constraints of host country firms but if incoming foreign investors borrow heavily from domestic banks foreign direct investment may exacerbate financing constraints by crowding host country firms out of domestic capital markets combining a unique cross country firm level panel with time series data on restrictions on international transactions and capital flows harrison love and mcmillan find that different measures of global flows are associated with a reduction in firm level financing constraints first the authors show that one type of capital inflow foreign direct investment is associated with a reduction in financing constraints second they test whether restrictions on international transactions affects the financing constraints of firms the results suggest that only one type of restriction those on capital account transactions negatively affects firms financing constraints the authors also show that multinational firms are not financially constrained and do not appear to be sensitive to the level of foreign direct investment this implies that foreign direct investment eases financing constraints for non multinational firms finally the authors show that 1 foreign direct investment only eases financing constraints in the non g7 countries and 2 other kinds of flows such as portfolio investment have no impact on financing constraints

optimal instruments in time series a survey abstract this article surveys estimation in stationary time series models using the approach of optimal instrumentation we review tools that allow construction and implementation of optimal instrumental variables estimators in various circumstances in single and multiperiod models in the absence and presence of conditional heteroskedasticity by considering linear and non linear instruments we also discuss issues adjacent to the theme of optimal instruments the article is directed primarily towards practitioners but econometric theorists and teachers of graduate econometrics may also find it useful

human development and economic sustainability abstract this paper attempts to integrate the concern for human development in the present with that in the future in arguing for sustainable human development it appeals to the notion of ethical universalism an elementary demand for impartiality of claims applied within and between generations economic sustainability is often seen as a matter of intergenerational equity but the specification of what is to be sustained is not always straightforward the addendum explores the relationship between distributional equity sustainable development optimal growth and pure time preference

the dynamics of foreign direct investments in land and pollution accumulation following the recent increase of foreign direct investments in land this paper studies their possible effects on the development of a local economy to this aim we use a two sector model external and local with heterogeneous agents external investors and local land owners we assume that both sectors are negatively affected by pollution but only the external sector is polluting the local government can tax the external sector s production activities to finance environmental defensive expenditures we first examine the equilibria that emerge in the model from the dynamics of pollution and physical capital and then investigate the conditions for the coexistence of the two sectors and the impact of the external sector on the revenues of the local population using numerical simulations we show that a revenue increasing path may occur only if the pollution tax is high enough and the impact of the external sector on pollution is low enough otherwise foreign direct investments may end up impoverishing the local population

multinationals multi plant economies and the gains from trade a general equilibrium model of a multinational enterprise based on economies of multi plant operation is developed these economies are modelled as arising from the existence of a joint input whose productivity in each production facility is independent of the number of facilities maintained by a firm the multinational thus offers the world increased technical efficiency by eliminating the duplication of the joint input that would occur with independent national firms since this technical efficiency may come at the expense of increased market power the full determinants of home country host country and world welfare are considered

the liberalization of retail services in india summary despite the recent controversy about opening up the distribution sector to foreign retailers there is political will that remains in favor of pushing through reforms in india in this paper we quantify the economic impact of the removal of barriers to foreign investment in multi brand retailing on different stakeholders using a newly developed general equilibrium model the model accounts explicitly for both foreign direct investment and the activities of foreign affiliates using heterogeneous production technologies we find that the unilateral reduction of barriers to fdi in distribution services in india benefits the economy as a whole consumers and foreign producers but hurts domestic distributors nevertheless when we consider the associated productivity improvements documented in the literature to downstream and upstream industries we find that domestic producers are expected to benefit from the liberalization of the distribution sector as well

does human capital constrain the impact of foreign direct investment and remittances on economic growth in ghana this article empirically investigates whether human capital constrains the impact of foreign direct investment fdi and remittances on economic growth in ghana an economic growth model for ghana is specified and estimated using fully modified ordinary least squares fmols estimator and employing annual data spanning the period 1965 to 2008 empirical results indicate that fdi and remittances are key determinants of economic growth in ghana results indicate that human capital enhances the impact of fdi and remittances on economic growth although both government expenditure and trade openness are growth enhancing government expenditure appears to crowd out private investment empirical results also indicate that domestic inflationary pressures unstable political environment and volatile global economy exert a negative impact on economic growth in ghana

banks and macroeconomic disturbances under predetermined exchange rates abstract as the recent mexican crisis vividly illustrates latin american countries often go through boom bust cycles caused by both domestic policies and external shocks such cycles are typically magnified by weak banking systems which intermediate large capital inflows this paper develops a simple optimizing model to analyze how the banking sector affects the propagation of shocks in particular we show how the world business cycle and shocks to the banking system affect output and employment through fluctuations in bank credit we also analyze the countercyclical use of reserve requirements econometric evidence for chile and mexico supports the main predictions of the model

intertemporal preferences and labor supply in this paper the authors examine whether nonseparable preference structures ar e important in characterizing life cycle labor supply using longitud inal data on prime age males from the panel study of income dynamics they estimate a model of life cycle leisure and consumption under un certainty in which intertemporal preferences are allowed to be nonsep arable in leisure the model tests several alternative specifications considered in the literature they investigate the robustness of the ir findings to certain forms of population heterogeneity and types of model misspecification across alternative specifications the autho rs find that the standard assumption of intertemporally separable pre ferences for leisure is not consistent with the data copyright 1988 by the econometric society

foreign direct investments environmental externalities and capital segmentation in a rural economy this paper examines the possible effects of external investment inflows on the development of local rural economies taking into account two recurrent features of many developing countries capital market segmentation and environmental externalities to investigate this issue we examine a model with two sectors the local sector and the external sector physical capital accumulation in the latter sector is driven by foreign direct investments while in the former sector it follows a solow type accumulation mechanism we assume that the production activity of the external sector damages the environment while the local sector relies on natural resources in this context we give the conditions under which capital inflows can promote diversification of host economy while improving welfare of local populations if these conditions are not satisfied external investments fuel a welfare reducing process for the local community and a self enforcing growth of the external sector at the expense of the local one

financial development growth and the distribution of income a paradigm is presented in which both the extent of financial intermediation and the rate of economic growth are endogenously determined financial intermediation promotes growth because it allows a higher rate of return to be earned on capital and growth in turn provides the means to implement costly financial structures thus financial intermediation and economic growth are inextricably linked in accord with the goldsmith mckinnon shaw view on economic development the model also generates a development cycle reminiscent of the kuznet hypothesis in particular in the transition from a primitive slow growing economy to a developed fast growing one a nation passes through a stage in which the distribution of wealth across the rich and poor widens

causal relationships between energy consumption foreign direct investment and economic growth fresh evidence from dynamic simultaneous equations models this paper examines the interrelationships between energy consumption foreign direct investment and economic growth using dynamic panel data models in simultaneous equations for a global panel consisting of 65 countries the time component of our dataset is 1990 2011 inclusive to make the panel data analysis more homogenous we also investigate this interrelationship for a number of sub panels which are constructed based on the income level of countries in this way we end up with three income panels namely high income middle income and low income panels in the empirical part we draw on the growth theory and augment the classical growth model which consists of capital stock labor force and inflation with foreign direct investment and energy generally we show mixed results about the interrelationship between energy consumption fdi and economic growth

liberalization fdi and growth in developing countries a panel cointegration approach using a panel cointegration framework the article explores the two way link between fdi and growth for a panel of 23 developing countries in addition it investigates the impact of liberalization on the dynamics of the fdi and gdp relationship a long run cointegrating relationship is found between fdi and gdp after allowing for heterogeneous country effects the cointegrating vectors reveal a bidirectional causality between gdp and fdi for more open economies for relatively closed economies long run causality appears unidirectional and runs from gdp to fdi implying that growth and fdi are not mutually reinforcing under restrictive trade and investment regimes

does foreign direct investment reduce poverty in africa and are there regional differences summary this paper re examines the relationship between foreign direct investment fdi inflows and welfare or poverty reduction in africa using fdi net inflows per capita and the united nations development program s human development index as the principal variables our analyses confirm the positive and strongly significant relationship between fdi net inflows and poverty reduction in africa but find significant differences among african regions we also find that fdi has a greater impact on welfare in poorer countries than it does in wealthier countries for instance while the relationship between fdi and poverty reduction is positive and significant for economic communities in central and east africa it is non significant in northern and southern africa furthermore the relationship was found to be ambiguous in west africa our results are robust to many model specifications

financial market development in host and source countries and their effects on bilateral foreign direct investment we study an underexplored research question namely whether financial market development in both host and source countries has an effect on bilateral stocks of foreign direct investment fdi and particularly whether the effect of financial market development in one member of the country pair conditions the effect of financial market development in the other member we estimate gravity type models in a global sample of 43 source and 137 host countries over the period 2001 12 we address reverse causality concerns by restricting the sample to observations where reverse causality if existent should be less relevant our major and robust findings are that bilateral fdi increases with better developed financial markets in both the host and the source country and that for developing host countries financial market development in source and host countries functions as substitutes for each other

does foreign direct investment promote growth exploring the role of financial markets on linkages abstract do multinational companies generate positive externalities for the host country the evidence so far is mixed varying from beneficial to detrimental effects of foreign direct investment fdi on growth with many studies that find no effect in order to provide an explanation for this empirical ambiguity we formalize a mechanism that emphasizes the role of local financial markets in enabling fdi to promote growth through backward linkages using realistic parameter values we quantify the response of growth to fdi and show that an increase in the share of fdi leads to higher additional growth in financially developed economies relative to financially under developed ones

intellectual property rights fdi r d and economic growth a cross country empirical analysis this paper aims to empirically examine how intellectual property rights iprs protection foreign direct investment fdi and research and development r d along with other possible variables may affect the economic growth of the host country using the panel data of 92 countries during 1970 2007 i conclude from the system generalised method of moments estimation that domestic investment share fdi r d capacity openness to trade human capital and iprs protection all have statistically significant and positive impacts on economic growth a further investigation of countries at different levels of development suggests two striking findings first besides the domestic investment openness human capital and iprs protection r d is the key to drive economic growth in the higher income countries while fdi is the engine of growth in both higher income and middle income countries second a positive and significant impact of iprs protection on economic growth is found in both higher income and lower income countries however such an impact is not detected in the middle income countries

fdi and financial market development in africa the literature on the relationship between foreign direct investment fdi financial market development fmd and economic growth focuses mainly on two aspects the relationship between fdi and economic growth and the role played by fmd in that linkage the literature is almost silent on the relationship and the direction of causality between fdi and fmd although it has been established that fdi contributes more to growth in countries with a more developed financial market it is not clear how fdi and fmd interact with each other the aim of this paper is to fill this gap in the african context particularly in africa where stock markets experience low liquidity and less transparency fdi can be an impetus for financial market reforms and serve as a mechanism to improve the transparency and the depth of the financial markets also well functioning financial markets can help channel foreign investments more efficiently into productive sectors and therefore create more value for investors hence making the countries more attractive to fdi in short both fdi and fmd will impact each other simultaneously which is confirmed by our findings we document a bidirectional causality between fdi and fmd furthermore the multivariate regression results of the system of simultaneous equations also confirm the positive relationship between fdi and fmd in africa we also find that fdi contributes to economic growth in africa after controlling for endogeneity between fdi fmd and economic growth

growth by destination the role of trade in africa s recent growth episode summary over the period 1990 2009 africa has experienced a distinct and favorable reversal in its growth fortunes in stark contrast to its performance in the preceding decades leading to a variety of hypotheses seeking to explain the phenomenon this paper presents both cross country and panel data evidence on the causal factors driving the recent turnaround in africa s growth and takes the unique approach of disaggregating the separate growth impacts of africa s bilateral trade with china europe and america the empirical analysis presented in this paper suggests that the primary and most robust causal factors driving africa s recent growth turnaround are private sector and foreign direct investment although empirical evidence of the role of bilateral trade openness in africa s recent growth emerges within a fixed effect estimation setting these results are not as robust when endogeneity and other issues are fully accounted for among the three major bilateral partners africa s bilateral trade with china has been a relatively important factor spurring growth on the continent and especially so in resource rich oil producing and non landlocked countries the econometric results are not as supportive of growth inducing effects of foreign aid these findings emerge after applying a variety of panel data specifications to the data including the recent fixed effects filtered fef estimator introduced by pesaran and zhou 2014 and the dynamic panel generalized method of moments gmm estimator which allows for endogeneity between trade and growth

gmm estimation of a money in the utility function model the implications of functional forms this paper studies consumer demand for real balances by allowing money to enter directly into an aggregate utility function as an asset that provides liquidity services the essay extends existing literature by investigating a money in the utility function model under a variety of specifications of the representative agent s objective function the empirical analysis employs the generalized method of moments technique to estimate the coefficients of the euler equations derived from the structural model the parameter estimates are compared across specifications of the utility function and across data sets the results provide some support for the view that the liquidity services provided by real balances contribute to utility

foreign direct investment in oecd countries a special focus in the case of greece foreign direct investment fdi is considered as an important instrument for economic development all over the world the aim of this paper is to examine the fdi inflows determinants for 24 oecd co

does fdi improve economic development in north african countries this article examines the relationship between fdi inflows and welfare improvement in north african countries using net per capita fdi inflows and the united nations development program s human development index as the principal variables our analyses confirm the positive and strongly significant relationship between net fdi inflows and welfare improvement in north africa although we do find significant differences among the countries in the region this relationship holds even after we control for government size country indebtedness macroeconomic instability infrastructural development institutional quality political risk openness to trade education and financial market development hence at the aggregate level fdi contributes to economic growth in north africa in turn generating additional revenues for governments and populations in the region through fiscal policies and jobs creation we also found that fdi received by countries in the region are mainly concentrated in very few industries

pro poor growth and sustainable development framework evidence from two step gmm estimator abstract the environmental sustainability agenda is not easy to be achieved without implementing pro growth and pro poor growth policies across the globe pakistan s economy is no exception that strive hard to managed environmental resource capital and pro poor growth expenditures in order to reduce poverty incidence and carbon mitigation policies while many efforts need more sustainable instruments to be achieved united nation s assigned sustainable development target till 2030 the study selected an annual time series data from 1975 to 2016 and employed two step generalized method of moments gmm estimator for robust inferences the results show that higher economic growth decreases poverty incidence through social reforms while deforestation under 5 mortality rate trade openness carbon emissions and fdi inflows largely increases poverty incidence in a country the study confirmed environmental kuznets curve ekc hypothesis of carbon emissions in relation of per capita income and public spending on education while pollution haven hypothesis is confirmed due to high involvement of dirty polluting industries in country s economic transformation process the fossil fuel combustion and high population density increases carbon emissions that sabotage the process of sustainable development in a country thus it is imperative to device sustainable policies for mitigating carbon fossil emissions with cleaner production techniques and improves the quality of life of poor people through increase social expenditures that trickle down to the poor as compared to the non poor

china s catch up to the us economy decomposing tfp through investment specific technology and human capital we implement a neoclassical growth model that incorporates investment specific technology ist modifying capital investment in the law of motion of capital and bifurcates productivity into human capital and total factor productivity tfp in the production function we focus on the role of changes in the quality adjusted price of investment goods on china s growth by comparing the effects of ist and human capital on the decomposition of us and chinese productivity the results show that both human capital and ist play an important role in the decomposition of us tfp for china human capital accounts for an increasingly higher portion of chinese tfp for the period 1952 2009 however ist contributes to the explanation of tfp only after the 1979 reforms the analysis is extended by considering the impact of ist in the consumer s investment decision and by projecting both countries gdp while modelling unbalanced chinese growth using catch up our model predicts that the chinese economy will surpass the us

generalized method of moments and macroeconomics we consider the contribution to the analysis of economic time series of the generalized method of moments estimator introduced by hansen we outline the theoretical contribution conduct a small scale literature survey and discuss some ongoing theoretical research

does foreign aid increase foreign direct investment summary we examine the idea that aid and foreign direct investment fdi are complementary sources of foreign capital we argue that the relationship between aid and fdi is theoretically ambiguous aid raises the marginal productivity of capital when used to finance complementary inputs like public infrastructure and human capital investments but aid may crowd out private investments when it comes in the shape of pure physical capital transfers empirically we find that aid invested in complementary inputs draws in fdi while aid invested in physical capital crowds it out the paper shows that the composition of aid matters for its overall level of efficiency

what does the term structure tell us about future inflation abstract this empirical analysis indicates that for maturities of six months or less the term structure of nominal interest rates provides almost no information about the future path of inflation but does provide information about the term structure of real interest rates however as maturities lengthen to nine and twelve months the nominal term structure begins to contain information about future inflation but ceases to provide information about the real term structure these results are explained by differences in the relative variability of expected future inflation changes and real term structure slopes at different points in the term structure

cross national laws and differences in market response international differences in general and cultural differences in particular exert profound influence on what people buy in modeling market response highly visible international differences in purchase behavior seem to lead to an assumption by management scientists that there are large parallel international differences in market response to such things as price and advertising in an interpretive review of market response models we do find international differences in response parameters but we also find that parameter differences due to cross national factors tend to be smaller than differences related to technical characteristics of the model or to product market specifics we suggest two new intermediate categories of generalizability between the extremes of everything is the same and everything is different we also argue that one promising approach to international generalization is through appropriate statistical adjustment of parameters from existing models

factors determining energy consumption evidence from indonesia malaysia and thailand abstract the aim of this study is to verify empirically the impact of various factors on energy consumption in three asean countries namely indonesia malaysia and thailand over the period 1980 to 2012 after using sundry appropriate diagnostic tests for checking time series data the method of least square as an analytical technique is used for parameters estimation the findings validate that fdi inflows economic growth trade openness and human development index have positive and statistically significant impacts on energy consumption the other variable urbanization has positive and statistically significant impacts on energy consumption for thailand and indonesia only while the empirical results reveals that population growth rate has a positive and statistically significant relationship with energy consumption only in the case of malaysia so in the light of determinations of the study the policy implication is that energy policy needs to be orientated in favor of expanding the supply of energy to reach an enhanced degree of sustainable economic growth and development

the effect of financial development on convergence theory and evidence we introduce imperfect creditor protection in a multicountry schumpeterian growth model the theory predicts that any country with more than some critical level of financial development will converge to the growth rate of the world technology frontier and that all other countries will have a strictly lower long run growth rate we present evidence supporting these and other implications in the form of a cross country growth regression with a significant and sizable negative coefficient on initial per capita gdp relative to the united states interacted with financial intermediation in addition we find that other variables representing schooling geography health policy politics and institutions do not affect the significance of the interaction between financial intermediation and initial per capita gdp and do not show any independent effect on convergence in the regressions our findings are robust to removal of outliers and to alternative conditioning sets estimation procedures and measures of financial development

comparative invention performance of major industrial countries patterns and explanations the paper presents an analysis of invention performance as measured by patenting activities of six countries france italy japan united kingdom ussr west germany relative to the united states for 41 sic industries over the past 20 years it turns out that non u s countries as a group have increased their relative invention performance in all fields of technology including high technology fields in a second step hypotheses which can be supposed to explain the relative decline of the united states patenting activities are discussed and tested there is strong evidence that catching up processes contributed most to the relative decrease of the united states there is only little evidence that government interventions regarding research and development activities have had counterproductive effects on invention performance