cluster or capture manufacturing foreign direct investment external economies and agglomeration phelps n a cluster or capture manufacturing foreign direct investment external economies and agglomeration regional studies this paper reviews the nature and significance of external economies associated with multinational enterprise mne participation in the manufacturing industries of host economies it argues that the balance of forces of internalization and externalization is currently skewed towards the former and the interests of mnes rather than the latter and the interests of local and national communities and governments a stylized comparison of developmental and competition state interventions in relation to mnes and their foreign direct investment fdi suggests that in the absence of co ordinated interventions by governments there will commonly be a failure of the logic of internalization to permit localized processes of externalization indeed the experiences of the competition states of the uk and the usa highlight the potential for the partial internalization or capture of loc

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

multiattribute elicitation of wilderness preservation benefits a constructive approach abstract this paper contributes to the development of a constructive approach to evaluating environmental resources using a version of multiattribute value elicitation in a group setting section 1 discusses the assumptions and practices of group multiattribute elicitation for public policy decisions the good of interest is a potential doubling of designated wilderness areas in british columbia two groups totalling 28 subjects participated in intensive half day workshops in which they provided judgments regarding the amounts of tax revenues from forest industry activities each thought provincial residents should forego to achieve specified increases in wilderness preservation subjects were asked to consider direct and passive use values spiritual values and ecological service values subjects were also asked to consider separately the interests of the current generation and future generations of residents and to provide judgments regarding the marginal benefits of increasing preservation an initial aggregated valuation question was followed by five more disaggregated questions subjects then compared and reconciled their value judgments for the aggregated and disaggregated questions the results are generally comparable to those of a contingent valuation referendum based survey for the same valuation issues

the causal relationship between information and communication technology and foreign direct investment this paper investigates the simultaneous causal relationship between investments in information and communication technology ict and foreign direct investment fdi with reference to its implications on economic growth for the empirical analysis we use data from 23 major countries with heterogeneous economics development for the period 1976 99 the results of unit roots and johansen co integration tests indicate variations in degrees of integration among the sample countries our causality test results suggest that there is a causal relationship from ict to fdi interpreted as the higher level of ict investment leads to increased inflow of fdi ict contributes to economic growth indirectly by attracting more foreign direct investment in developed countries there already exist a build up ict capacity which causes inflow of fdi while in developing countries ict capacity must be build up to attract fdi the inflow of fdi causes further increases in ict investment and capacity

discourse based valuation of ecosystem services establishing fair outcomes through group deliberation discourse based methods involving small groups of citizens have yet to be thoroughly engaged in the practice of ecosystem valuation this remains true despite the fact that many ecosystem goods and services such as clean air biodiversity and unpolluted lakes and rivers are considered to be public goods the conventional application of ecosystem valuation relies heavily on methodologies such as contingent valuation in which individuals are asked to express the value they attach to ecosystem goods and services in social isolation the difference between the public nature of ecosystem services and their valuation through individual expression has thus recently led to calls for more deliberative forms of environmental valuation because the allocation of ecosystem services directly affects many people and raises normative questions about social equity it is argued that carefully designed discursive methods will help ensure the achievement of social equity goals in this paper we examine the theoretical and normative assumptions that rest beneath the proposed turn towards discourse based methods and identify procedures for testing their application in the field 2002 elsevier science b v all rights reserved

to what extent can foreign direct investment help achieve international development goals for fdi to help alleviate absolute poverty and stimulate economic growth in developing countries two conditions have to be met first developing countries need to be attractive to foreign investors second the host country environment in which foreign investors operate must be conducive to favourable fdi effects with regard to overall investment economic spillovers and income growth this paper argues that it is more difficult to benefit from fdi than to attract fdi the widely perceived concentration of fdi in few developing countries tends to obscure that in relative terms various small and poor countries are fairly attractive to fdi yet the mobilisation of domestic resources remains by far more important than attracting fdi for financing investment and stimulating economic growth furthermore high inward fdi is no guarantee for poverty alleviation and positive growth effects in particular the empirical evidence suggests that host country conditions typically prevailing in poor countries including weak institutions and an insufficient endowment of complementary factors of production constrain the growth enhancing and poverty alleviating effects of fdi the crux is that creating an environment in which fdi may deliver social returns will take considerable time exactly where development needs are most pressing

resource compensation and negotiation support in an aboriginal context using community based multi attribute analysis to evaluate non market losses abstract compensation for losses of non market values experienced by aboriginal peoples due to adverse impacts on their land or resource base caused by others is an important issue for law and social justice yet the standard methods of economic valuation as a basis for determining compensation are not always suited to addressing the diverse values of aboriginal people this paper discusses an approach to valuation that employs concepts and methods of decision analysis informed by behavioral decision research in an applied context it uses a multi attribute value assessment as a basis for characterizing the relative significance of resource damages that affect deeply held complex intangible values we draw on the experience of conducting analyses for three metis settlements in alberta canada to illustrate the approach using a case study interpretations of the results as a basis for negotiation regarding compensation are examined

a critical review of multi criteria decision making methods with special reference to forest management and planning abstract this paper provides a review of research contributions on forest management and planning using multi criteria decision making mcdm based on an exhaustive literature survey the review primarily focuses on the application aspects highlighting theoretical underpinnings and controversies it also examines the nature of the problems addressed and incorporation of risk into forest management and planning decision making the mcdm techniques covered in this review belong to several schools of thought for each technique a variety of empirical applications including recent studies has been reviewed more than 60 individual studies were reviewed and classified by the method used country of origin number and type of criteria and options evaluated the review serves as a guide to those interested in how to use a particular mcdm approach based on the review some recent trends and future research directions are also highlighted

a new global index of infrastructure construction rankings and applications we construct comprehensive and comparable indices on the most relevant components of economic infrastructure an unobserved components model is employed to cover the largest possible number of developing and developed countries over the period 1990 2010 we map major findings from the new indices of infrastructure and provide country rankings which we also compare with subjective assessments of infrastructure in the world economic forum s global competitiveness report finally we exemplify possible applications related to trade and foreign aid by overcoming several data limitations our new global index can help assess the links between infrastructure and economic development more systematically

can the world cut poverty in half how policy reform and effective aid can meet international development goals abstract poverty in the developing world will decline by about one half by 2015 if the trends of the 1990s persist most of this poverty reduction will occur in asia however while poverty will decline only slightly in africa effective aid could make a contribution to greater poverty reduction in lagging regions even more potent would be significant policy reform in these countries we develop a model of efficient aid in which flows respond to policy improvements that create a better environment for poverty reduction and effective aid we investigate scenarios of policy reform and efficient aid that point the way to how the world can cut poverty in half in every major region

eliciting public values for complex policy decisions several approaches exist to illuminate and clarify public values relevant for making public policy decisions these include surveys indirect and direct value elicitation focus groups and public involvement this paper describes a new approach called the public value forum which combines elements of focus groups and direct multiattribute value elicitation techniques two public value forums were conducted with selected members of the west german public to elicit values relevant for setting long term energy policies the purposes of conducting the value forums were to examine the feasibility of eliciting values from laypeople and combining them with factual assessments of experts to determine the extent to which values elicited formally conflict with values elicited informally and to assess the advantages and disadvantages of the public value forum the results indicate that the public value forum is feasible that the participants felt comfortable with the procedure and that they were eager to resolve inconsistencies between their intuitive judgments and the multiattribute models there was substantial conflict between the formally and informally elicited values however the participants were able to resolve those conflicts in the course of the value forum tending towards more moderate alternatives in the process the public value forum provided useful information for the policy process and education for the participants however because it is expensive and time consuming its main application may involve small samples of opinion leaders and stakeholder representatives rather than large representative samples of the general public

a constructive approach to air quality valuation in korea abstract this paper uses a new constructive contingent valuation approach based on the value structuring capabilities of multi attribute utility theory maut to help respondents construct and express environmental value judgments in monetary terms the maut approach adopts a decomposition procedure which seems to be more in harmony with the constructive nature of human values and the coping strategies of respondents dealing with complexity we provide an application of the approach in a survey of random population samples where we seek valuation of specific damages due to air pollution in seoul korea a developing country where the economic valuation of environmental impacts remains scarce a discussion of the results is also presented the overall results show that although empirical evidence is sparse there appears to be considerable scope for the use of the approach in environmental valuations

mutual productivity spillovers between foreign and local firms in china the existing literature treats advanced technology sourcing as the only cause of reverse productivity spillovers from local to foreign firms and implies that mutual spillovers between foreign and local firms can only happen in the developed world this paper argues that the diffusion of indigenous technology and local knowledge helps the productivity enhancement of multinationals so that there can be mutual spillovers even in a developing country the results from a large sample firm level econometric analysis and a comparative case study of seven companies in chinese manufacturing support this new argument as mutual spillovers are identified between local chinese firms and overseas chinese or oecd invested firms

a stated preference approach to assessing health care quality improvements in palestine from theoretical validity to policy implications user fees have been promoted as a potential complementary funding mechanism for health care in developing countries in this paper we appraise the use of contingent valuation cv as a tool to help develop user fees schemes that could be used to assist in allocating and partially fund health care a random sample of 499 patients seeking care in primary health care centers in palestine were asked to reveal their willingness to pay values for specified improvements in the quality of delivered medical care empirical analysis suggests that in this context cv can lead to internally consistent results and useful policy implications

how people respond to contingent valuation questions a verbal protocol analysis of willingness to pay for an environmental regulation abstract this paper investigates what a respondent is thinking when answering a willingness to pay question in a contingent valuation using a think aloud technique from psychology called verbal protocol analysis the willingness to pay responses we observed seem to be constructed from a variety of considerations including an obligation to pay a fair share of the cost of the solution and signaling concern for a larger set of environmental issues the finding that respondents seem to construct their values at the time they are asked rather than reporting a more well defined value is seen as consistent with over two decades of research on the psychology of decision making potential uses of verbal protocols in contingent valuation studies are also discussed

mixed duopoly location choice and shadow cost of public funds we examine the relationship between equilibrium and efficient levels of product differentiation in a mixed duopoly where a welfare maximizing public enterprise competes with a profit maximizing private firm we introduce shadow costs of public funding i e the excess burden of taxation the profits of public firms obtained by the government reduce these costs we find that in a mixed duopoly the level of product differentiation is too low for social welfare this result is in sharp contrast to the private oligopoly where the level of product differentiation is too high finally we show that when the shadow cost is high privatizing the public enterprise improves welfare

the pattern of direct foreign investment and economic growth abstract this paper examines the relationship between the sectoral pattern of direct foreign investment dfi and growth using theoretical and empirical analysis the theoretical analysis suggests that different patterns of dfi because of their differential effects on the north south terms of trade and on southern technological development can be expected to affect growth in host countries differently the empirical analysis using crosscountry growth equations however is unable to detect any effects of the pattern of dfi on growth it is argued that detailed case studies of particular countries would be valuable for exploring the empirical issues involved

bilateral investment treaties and fdi does the sector matter summary developing and transition countries have increasingly engaged in the signing of bilateral investment treaties bits in order to attract fdi based on the widely shared view that fdi can contribute significantly to economic development and poverty reduction however the degree to which foreign investments can be expected to generate employment offer access to international technology and know how and ultimately create growth varies considerably depending on the type of investment it is therefore important to determine what type of fdi is attracted by bits by providing a legal commitment to the fair and equitable treatment of foreign investors bits aim to decrease investment risk and to attract foreign investors we argue that bits can be expected to be most effective in those sectors of the economy with a larger risk of expropriation i e sectors characterized by large sunk costs relatively low levels of firm specific know how and in sectors that are politically sensitive to foreign ownership this paper represents the first attempt to empirically study the heterogeneous effect that bits may have across different sectors of investments we analyze investments made in 13 countries in the former soviet union and central and eastern europe disaggregated over seven sectors we indeed find the effect of bits to differ considerably across sectors of investment using capital intensity as a proxy we confirm that fdi in those sectors with higher sunk costs responds more strongly to the signing of bits given the considerable differences in the development impact that can be expected from fdi in different sectors it remains to be shown whether bits are an effective tool to attract those types of investments that are most beneficial for the development of the host economy

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