dynamic adjustment process of retail store density in cointegrated panels evidence from japan using recently developed econometric techniques for testing the existence of unit roots and cointegration in panel datasets this article investigates the dynamic adjustment process of the number of retail stores per person by business type specifically the major objective of this article is to examine whether there is a long term relationship between retail store density and consumers ability to transport and store goods that is the relative costs of performing distributive tasks as suggested in previous studies relating to store density the first conclusion from this article is that a cointegration relationship exists between store density for most types of retail businesses and proxies for consumers ability to transport and store goods second the estimation results of an error correction model reveal that the density of stores dealing in convenience goods exhibits a slow adjustment speed to recover the long run equilibrium density level while the density of stores selling shopping goods show

fdi and taxation a meta study despite the continuing political interest in the usefulness of tax competition and tax coordination as well as the wealth of theoretical analyses it still remains open whether or when tax competition is harmful moreover the influence of tax differentials on multinationals decisions is still insufficiently analyzed thus economists have increasingly resorted to empirical analysis in order to gain insights on the elasticity of fdi with respect to company taxation as a result the empirical literature on taxation and international capital flows has grown to a similar abundance during the last 25 years as the respective theoretical literature its heterogeneity leads to a rising need for concise reviews on the existing empirical evidence in this paper we extend former meta analyses on fdi and taxation in three ways first we add the most recent publications unconsidered in meta analyses up to date second we apply a different methodology by using a broad set of meta regression estimators and explicitly discuss which one is most suitable for application to our meta data third we address some important issues in research on fdi and taxation to the clarification of which meta analysis can make valuable contributions these issues are mainly the influence of variables which might moderate effects of tax differentials e g public spending the implications of using aggregate fdi data as opposed to firm level information on measured tax effects the implications of bilateral effective tax rates and the possible presence of publication bias in primary research

determinants of foreign direct investment in spain this study utilizes panel data as a means of examining the determinants of foreign direct investment fdi in spain data that are taken in the period 1993 2002 are used in order to estimate the determinants of fdi at the sectoral level by differentiating the manufacturing sectors and at the regional level the analysis investigates the sectoral regional and macroeconomic variables that have successfully attracted fdi inflows from those that have not empirical results suggest that the differential between labour productivity and the cost of labour has been an important determinant of fdi in spain during the period 1993 2002 factors related to demand the evolution of human capital the export potential of the sectors and certain macroeconomic determinants that measure the differential between spain and the european union average also play a very important role in attracting flows of fdi certain policy issues that are relevant to the results are also discussed

the arms trade the arms trade winners and losers the arms trade is highly controversial and raises difficult policy issues the controversies tend to concentrate on the moral military and political dimensions of arms exports decisions quite a lot of light can be shed on this murky market by asking basic economic questions and using standard economic models we begin with a structured economic description of the evolution of the international arms market in terms of the factors that influence demand and supply and thus prices and quantities then we review the policy issues faced by eu members in particular whether a common control regime is needed to harmonize their regulation of arms exports to address these policy issues we present some models of the market that we have developed and examine their implications for the interesting interactions that characterize the trade paul levine and ron smith

the location of foreign direct investment an empirical analysis in this piece of research those factors are analysed which determine the choice of location for fdi the analysis is conducted using two models a multicountry model containing seven industrializ

global economic integration in developing countries the role of corruption and human capital investment globalization is multifaceted and involves the interaction among businesses services governments and societies beyond national borders as a result the flow of foreign direct investment fdi international trade in goods and services and the economic interdependence of the nations of the world have been increasing at the same time much attention has been paid to the effect of corruption prevalent within many cultures and societies and its impact on the economies especially developing economies this paper examines the relationship between human capital investment the level of national corruption and the global economic integration gei of a nation in developing countries based on the data collected from over 60 countries and building on the fdi and human capital theories it was found that human capital investment and corruption are related to gei it was also found that the level of corruption moderates the relationship between human capital investment and gei of developing economies the findings of the study can help to deepen our understanding of gei and have practical implications for developing countries in terms developing human capital which plays a critical role in today s knowledge based economy

what drives the capital flows into brics economies understanding what drives the capital flows has important policy implications for countries in managing the direction and magnitude of such flows this paper empirically investigates the main drivers of capital flows into the fast growing brics countries in the backdrop of their growing inward capital flows employing a fully balanced panel for the period 1995 2015 we focus on among others the hitherto commonly untested variables sovereign credit ratings economic freedom and ease of doing business ranking of these countries in searching for the relevant interaction and causality among the drivers of capital flows we employ the panel granger causality test to arrive at the policy implications the results suggest that market size is a significant driver of capital flows in addition to infrastructure economic freedom in the host countries ease of doing business ranking and sovereign credit ratings are the main drivers in the long run growth of capital flows

arming as a strategic investment in a cooperative equilibrium to develop a positive economic theory of military spending this analysis focuses on a game theoretic general equilibrium model of international conflict in which consumption peaceful investment and military spending are endogenously determined the analysis illustrates that when there is repeated interaction between nations a game of threats and punishments generally will not support a disarmament outcome and that fluctuations in military spending can be an endogenous result of fluctuations in aggregate economic activity furthermore the analysis shows how the relation between aggregate economic activity and military spending qualitatively depends on whether governments are acting opportunistically or cooperatively copyright 1990 by american economic association

the effect of foreign direct investment on the urban wage in china an empirical examination how does foreign direct investment fdi affect the wage levels of cities in a host country this paper uses a panel dataset of chinese cities to examine the impact of inward fdi on the urban real wage the results suggest that the existence of fdi has a significant and positive effect on urban real wages and that this impact remains significant after controlling for other city characteristics cross city variation of fdi intensity is one important factor contributing to intercity wage inequality

sizing up the peace dividend economic growth and military spending in the united states 1948 1996 with cold war expenditure no longer needed our gigantic government expenditures abroad could be reduced and our international deficit would probably disappear almost overnight with the dollar no longer overvalued militant expansion of monetary and credit policy could stimulate capital formation or investment to utilize the resources released from armament production america s potential and actual growth rate far from depending upon war preparations would be markedly increased by an end to the cold war paul samuelson economics an introductory analysis

u s foreign direct investment in latin america and the caribbean a case of remittances and market size abstractthis article investigates the effect of remittances on u s foreign direct investment fdi flows to latin america and the caribbean lac it covers 26 countries for the period 1983 2010 the results show a positive and significant impact of remittances on u s fdi flows however this effect depends upon the level of gross domestic product gdp per capita of the host country on average the results show that increasing remittances by one standard deviation increases u s fdi flows by 0 44 percent a year also host country demand positively affects u s fdi flows which supports the market size hypothesis

natural disasters and foreign direct investment the world s population has witnessed the concurrence of two powerful global trends an unprecedented growth in foreign direct investment fdi and an increase in natural disasters since investment decisions are based on an evaluation of expected risks and returns we consider whether fdi decisions are influenced by natural disasters we do so by considering the relation between fdi in 94 countries between 1984 and 2004 and the number of disasters striking those countries across a variety of empirical tests that control for two way fixed effects we find natural disasters to be negatively and statistically significantly associated with a country s fdi

the effect of national corporate responsibility environment on japanese foreign direct investment we examine the relationship between japanese foreign direct investment fdi and the national corporate responsibility ncr environment in host countries using corporate social responsibility and international business theories based on data from the japanese government s ministry of finance accountability and other sources we find that the level of ncr has a positive relationship with fdi inflow for developing countries the relationship for developed countries is negative but not statistically significant the underlying host country development stage moderates the relationship the results can help deepen understanding of fdi behaviors and have practical implications for host countries in terms of attracting fdi

institutions and inflows of foreign direct investment a fuzzy set analysis this study addresses the essential question of causal complexity and diversity related to the influence of institutions on the direct investments fdi of multinational enterprises using a relatively new methodological approach of fuzzy set analysis and 47 host countries from the period 1999 to 2003 the paper analyses how and why countries with different degrees of membership in different institutional constraints either attract or do not attract fdi the findings show that institutional factors have diverse influences similar institutions may even be associated with different outcomes if different regional categories of countries are examined countries may neither be attractive nor unattractive owing to the presence or absence of a single institutional factor instead the outcome usually results from a combination of institutional conditions moreover there typically are several possible paths to a specific outcome the study confirms some of the propositions of previous theory but most importantly it explains why earlier research has provided conflicting conclusions related to institutional factors the study also offers an approach for future international business research to apply fuzzy set methods and develop mid range theories

using cost observation to regulate firms the paper emphasizes the use of accounting data in regulatory or procurement contracts when the supplier 1 has superior information about the cost of the project and 2 invests in cost reduction the main result states that under risk neutrality the supplier announces an expected cost and is given an incentive contract linear in cost overruns this optimal contract moves toward a fixed price contract as the announced cost decreases an investment choice is then introduced and the use of a rate of return regulation is studied

mechanism experiments and policy evaluations randomized controlled trials are increasingly used to evaluate policies how can we make these experiments as useful as possible for policy purposes we argue greater use should be made of experiments that identify the behavioral mechanisms that are central to clearly specified policy questions what we call mechanism experiments these types of experiments can be of great policy value even if the intervention that is tested or its setting does not correspond exactly to any realistic policy option

exploring the regional distribution of inbound foreign direct investment in the uk in theory and practice evidence from a five region study fallon g and cook m exploring the regional distribution of inbound foreign direct investment in the uk in theory and practice evidence from a five region study regional studies this paper examines the main factors that attract inbound foreign direct investment fdi at the uk regional level using econometric data from five sample uk regions the south east the west midlands the north west wales and scotland broadly representing the country s regional economic divide the findings indicate that regional and national but not european union level factors linked to several underlying strategic determinants help determine the regional distribution of inbound foreign direct investment and its inter regional variation the paper concludes that governmental policy makers at the national and regional levels can have an important role to play in drawing targeted foreign direct investment inflows to the uk regions fallon g et cook m examiner la distribution regionale de l ide au royaume uni en the

the effect of corruption on japanese foreign direct investment in an effort to reduce risk and uncertainty we hypothesize that investors avoid countries where high corruption exists we investigate this issue by examining the relationship of levels of perceived corruption on japanese foreign direct investment fdi in both industrialized and emerging economies the analysis presented utilizes a sample of 29 546 investments in 59 countries results suggest that in emerging nations where comprehensive legal and regulatory frameworks do not exist to effectively curtail fraudulent activity corruption serves to reduce fdi managers need to consider the level of perceived corruption in their assessment of any market prior to potential investment

a european defence union a european defence union jacques fontanel and ron smith the end of the cold war the unification of germany and the removal of us troops has rekindled interest in european defence cooperation the ec has common security policies on its agenda the military role of the weu is being enhanced and the new nato strategy emphasizes multilateral european forces a european defence union offers large potential efficiency gains power like any natural monopoly is generated more effectively and more cheaply by joint forces than by the sum of fragmented individual forces there are also large economies of scale in weapons production trends in budgets costs and threats are making national provision problematic and national arms industries non viable an edu may appear more attractive than either spending vast sums to attain minimum efficient scale or relying on forces that are so small and ill equipped as to require either dependence on the us or acceptance of effective neutrality however an edu reduces national sovereignty poses problems of command control and organization risks free riding and adverse reactions by the us and ussr and is vulnerable to exploitation and rent seeking by military industrial interests this paper examines the economics of these issues and suggests a route towards effective cooperation

the global economy as instituted process the case of central and eastern europe i argue that economic globalization indicated by the tremendous rise in world foreign direct investment fdi in recent decades is not driven simply by investor considerations of economic risk and return but is significantly shaped by the construction of demand for foreign capital by receiving states states signal this demand through the levels of formal and substantive legitimacy they grant to fdi they institutionalize globalization in formal rule as a normatively desirable development strategy states substantiate this commitment by providing domestic and foreign actors with ideational and organizational resources to facilitate fdi to illustrate this argument i use the case of central and eastern europe which was largely closed to global capital before the collapse of communism analyses of quantitative and qualitative data show that substantive legitimacy granted to fdi by host states more than formal regulations determined the size of foreign capital flows into postsocialist countries in the