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

an econometric analysis of u s foreign direct investment this paper constructs a theoretical model of foreign direct investment and examines the extent to which the model can explain the level of outward direct investment by u s companies over the last two decades the authors find that market size and factor costs both labor and capital are important factors in the investment decision instrumental variable estimation is used to demonstrate that the expectation of short run fluctuations in the dollar also influences the timing of investment copyright 1996 by mit press

financial development and the fdi growth nexus the malaysian experience this article examines the fdi growth nexus in the small open economy of malaysia by controlling for the level of financial development financial development is proxied by a composite index which is a summary measure of four financial development indicators using time series data from 1965 to 2004 the results show that fdi and financial development are positively related to output in the long run the impact of fdi on output is enhanced through financial development to supplement these findings we assess the causal relationships between the variables using the recent causality tests available in the literature the results indicate that economic growth causes fdi growth in the long run but no feedback relationship is observed

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

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

a cost adjustment heuristic for dynamic lot sizing with uncertain demand timing we define a new heuristic based on the adjustment of set up costs for the dynamic lot sizing problem when demand timing is uncertain using a range of simulated problems we compare the performance of this cost adjustment heuristic with that of a safety lead time heuristic zangwill s deterministic algorithm which ignores uncertainty and the optimal solution results show that the safety lead time heuristic works well for problems with high shortage costs and high probability of early demands but poorly in other circumstances the cost adjustment heuristic is quite robust generally exceeds the performance of the safety lead time approach and is relatively insensitive to variations in uncertainty

the effect of outward investment to china on domestic r d a two hurdle model with endogenous odi outward direct investment odi and domestic r d are interrelated but empirical evidence is affected by the nature of a firm s data which are heavily censored firm data contain a firm s yes no decision to invest in china yes no decision of r d and the decision of r d intensity we thus adopt a two hurdle model and allow the china investment decision to be endogenous in an r d model in order to examine the effect of odi in china on domestic r d investment in taiwan s electronics industry in the model a two equation simultaneous subsystem is formed in which three regression equations are specified a decision of r d intensity and a yes no decision of location to conduct r d together with a yes no decision to invest in china our results indicate that china investment and r d intensity are positively related such that odi in china helps to raise significantly a firm s r d intensity as compared to the estimate if the endogeneity of china investment and the nature of data were not properly accounted

the locational determinants of direct investments among industrialized countries abstract market size and growth rate as well as tariff barriers have already been shown to influence u s direct investments in the eec the present paper enlarges the field of observation to all bilateral flows of direct investments among six industrialized countries the united states germany france the united kingdom the netherlands and belgium over the years 1969 1982 it also tests the impact of two other would be locational determinants of foreign direct investments namely unit labour costs and export flows moreover a new and alternative specification is put forward and tested which assumes that in the investment decision process foreign locations are in competition not only with each other but also with the home country of the investor

the role of investment for energy conservation future japanese economic growth abstract this article describes a variant of the cobb douglas production function the rasche tatom model which explicitly includes an energy factor the model is applied to the japanese economy to investigate the role of investment for energy conservation first the impact of rising energy prices on potential gnp and productivity is shown second it is suggested that the japanese economy will achieve a high growth rate 5 0 5 5 in the coming five years through substitution of capital for energy ie investment for energy conservation an international comparison of the models is also discussed

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

foreign direct investment and domestic investment in the host country evidence from panel study this article examines the impact of inward foreign direct investment fdi on host countries domestic investment utilizing data from 50 countries over the period of 1970 to 2004 we find that inward fdi has a negative contemporaneous effect on domestic investment while the cumulative effect of fdi over time tends to be positive in addition we separately study fdi in developed countries dcs and less developed countries ldcs the effect of contemporaneous fdi on domestic investment is negative in dcs and the cumulative effect of fdi is neutral strong evidence suggests that the contemporaneous effect of fdi on domestic investment is neutral in ldcs while the cumulative effect of fdi is positive

the determinants of fdi location choice in china a discrete choice analysis this study addresses two questions what are the determinants of foreign direct investment fdi location choice in china what are the factors that determine investors choice between economic zo

is foreign direct investment beneficial for mexico an empirical analysis 1960 2001 summary this paper examines the impact of foreign direct investment fdi on labor productivity growth in mexico using cointegration analysis a dynamic labor productivity function for the 1960 2001 period is estimated that includes inter alia the impact of changes in the stock of private and foreign capital per worker the error correction model ecm estimates suggest that increases in both private lagged and foreign lagged investment per worker have a positive and economically significant effect on the rate of labor productivity growth however after taking into account the growing remittances of profits and dividends there is a marked decrease in the economic effect of foreign capital per worker on the rate of labor productivity growth the paper assesses the short term interactions of the relevant variables via impulse response functions irfs and variance decompositions vdcs based on a decomposition process that does not depend on the ordering of the variables

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

input substitution effect in china s chemical industry evidences and policy implications abstract the chemical industry is one of the six high energy consuming and emission intensive sectors in china and the chinese government has focused its attention on energy saving and emissions reduction in the sector with the aim of contributing to the objective of energy saving and emission reduction in the sector this article studies the external substitution relationship of capital energy and labor energy using the translog production function and ridge regression the results are as follow the output elasticities of energy labor and capital are positive the substitution elasticities of capital labor capital energy and labor energy are positive and stable and their values are close to 1 which indicates that the three factors are substitutes for one another furthermore based on the above function we measure the level of energy saving and emissions reduction under different scenarios in 2012 policy implications of the results are provided

foreign direct investment and economic growth an increasingly endogenous relationship summary this paper investigates whether foreign direct investment fdi affects economic growth based on a panel of data for 84 countries over the period 1970 99 both single equation and simultaneous equation system techniques are applied to examine this relationship a significant endogenous relationship between fdi and economic growth is identified from the mid 1980s onwards fdi not only directly promotes economic growth by itself but also indirectly does so via its interaction terms the interaction of fdi with human capital exerts a strong positive effect on economic growth in developing countries while that of fdi with the technology gap has a significant negative impact

foreign direct investment and factor demand elasticities abstract this paper argues that the liberalisation of foreign direct investment fdi has made labour costs more important to domestic investment and long run labour demand it provides evidence from british and german data that is consistent with this view first high unit labour costs increase fdi outflows and lower fdi inflows second the effect of unit labour costs on domestic manufacturing investment was more negative in the high fdi 1980s than in the low fdi 1970s and this change was concentrated in high fdi industries the estimates suggest that the long run labour demand elasticity may have risen substantially

firm specific assets and the link between exchange rates and foreign direct investment foreign direct investment fdi theory and empirical studies have generated mixed support for a link between exchange rates and fdi this paper argues that exchange rate movements may affect acquisition fdi because acquisitions involve firm specific assets which can generate returns in currencies other than that used for purchase using data on japanese acquisitions in the united states across three digit sic industries from 1975 to 1992 maximum likelihood estimates from discrete dependent variable models support the hypothesis that real dollar depreciations make japanese acquisitions more likely in u s industries particularly those which more likely have firm specific assets copyright 1997 by american economic association

foreign direct investment in the united states an analysis by country of origin given the large size and rapid growth of foreign direct investment in the united states this subject is a central concern of u s firms and u s government policymakers this study explores the factors that contribute to the explanation of fdi in the united states by country of origin of investment evidence from the past twelve years shows that the main significant positive influences are home country s exports to the united states and home country market size significant negative influences include the home country s imports from the united states the cultural and geographic distances of the home country from the united states and the exchange rate fx

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

the boundaries of multinational enterprises and the theory of international trade this paper begins with a review of empirical evidence on multinational firms conceptual underpinnings of a theory are developed relying in particular on the notion of knowledge capital as a mobile joint input into geographically separated production facilities this idea is embedded in a simple two country general equilibrium model that supports multinational production in equilibrium under conditions consistent with the empirical evidence the final section examines internalization and shows why certain properties of knowledge capital also imply a preference for transferring technologies internally within the firm rather than through arm s length markets

energy investment and economic growth a simplified approach abstract a model is developed to investigate the effect of energy investment on economic growth under a set of simplifying assumptions the economy is treated as a two sector aggregate the energy sector and the rest of the economy whereas the model describing the energy economy interaction is linear to the differential changes of the variables adaptable to structural evolution and requires a modest amount of data for initialization it can be used in a single stage or an iterative mode to produce outcomes for the short and medium run the analysis reveals that energy productive investment has had an impact on the rate of formation of the non energy capital stock and subsequently on economic growth these effects appear amplified under a regime of increasing energy price

the eclectic paradigm of international production a restatement and some possible extensions this article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade and restates its main tenets the second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to mne activity as well

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 interdependence between fdi and r d an application of an endogenous switching model to taiwan s electronics industry foreign direct investment fdi and research development r d are mutually dependent and should be treated as endogenous variables in empirical studies an endogenous switching regression model is used to examine the mutual effect of fdi and r d in taiwan s electronics industry the empirical results show that fdi and r d are positively related and do reinforce each other unbiased coefficients are obtained as they are compared to those estimates if fdi and r d are treated as exogenous variables the results have a strong public policy implication for taiwan s foreign direct investment and can be further used to estimate the difference in r d expenditures between fdi and non fdi firms

reappraising the eclectic paradigm in an age of alliance capitalism this article discusses the implications of the advent of alliance capitalism for our theorizing about the determinants of mne activity in particular it argues that due to the increasing porosity of the boundaries of firms countries and markets the eclectic or oli paradigm of international production needs to consider more explicitly the competitive advantages arising from the way firms organize their inter firm transactions the growing interdependencies of many intermediate product markets and the widening of the portfolio of the assets of districts regions and countries to embrace the external economies of interdependent activities

foreign direct investment and endogenous growth in vietnam foregin direct investment s fdi s contribution to growth has been a controversial topic in economic literature and appears to be country specific in this article we use time varying coefficients in an augmented production function and let fdi indirectly affect gross domestic product growth through labour productivity this approach creates built in heteroskedasticity so the feasible generalized least square estimation is employed the results show that fdi has significant and positive effect on labour productivity and economic growth in vietnam but the effect is not equally distributed among economic sectors

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

energy economic growth and causality in developing countries a case study of tanzania and nigeria the debate about the precise role of energy in economic development remains contentious existing empirical studies have produced varying results some have argued the complementarity between energy and other factors of production and others have indicated that energy can be substituted for other factors of production commonly these studies have focused primarily on the developed countries one explanation being that supply constraints and price rigidities render any study on factor substitutions in developing countries meaningless however the functional relationship between energy consumption and income in developing countries is constantly investigated with the use of regression techniques while such techniques are useful in empirical analysis no mechanism exists for indicating causal directions between variables this limits the scope for policy analysis and prescription the need to identify causal direction between energy consumption and income growth in developing countries is overwhelming apart from providing further insights into the role of energy in economic development it provides policy analysts with a clearer understanding of the likely impact of energy supply constraints on economic growth this article examines the causal directions between energy consumption and economic growth proxied by gdp and gnp for nigeria and tanzania the results show a simultaneous causal relationship between energy and economic growth for both countries the implication being that unless energy supply constraints are eased economic growth and development will remain elusive to these countries given similar economic characteristics and profiling the same energy scenario for other developing countries our finding supports the view that energy plays a key role in economic development

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

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

determinants of japanese direct investment in us manufacturing industries abstract a hybrid model of direct investment is developed from an asset portfolio model and an industrial organization model of investment encompassing tests using disaggregated data validate the hybrid model while its two component models are rejected by at least some of the data the exchange rate is found to be an important explanatory variable for direct investment in some but not all of us industries equity purchase is more likely in r d intensive industries in privately held companies and in highly concentrated industries plant and equipment investment is more likely in industries with increasing returns to scale and in industries experiencing large net export deficits with japan jel f21

foreign direct investment pollution and economic growth evidence from malaysia the bounds test developed by pesaran et al 2001 is applied to examine the existence of a long run relationship between foreign direct investment fdi inflows pollution and output of malaysia granger causality tests are also utilized to test for the presence of the short run and long run causal relationship between these variables both fdi inflows and pollution have short run causal relationship on output output only has long run causal relationship on fdi inflows

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

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

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

the location of export oriented foreign direct investment in the caribbean basin this paper analyzes the location of export oriented manufacturing investment the analysis focuses on direct investment in the caribbean basin using micro data for all reported manufacturing plant openings from 1984 87 we test a broad range of influences on country selection and compare the results with the existing literature on foreign direct investment in less developed countries the probability of country selection was estimated with a conditional logit model the estimates were then used to predict the location of caribbean basin investments made in 1988 and 1989 twelve independent variables were tested six variables had a statistically significant positive relationship with plant location per capita gnp exchange rate devaluation the length of income tax holidays the size of free trade zones political stability and manufacturing concentration negative relationships were found for the wage rate inflation rate transportation cost and profit repatriation restrictions

corporate tax rates and foreign direct investment in the united states a significant research effort has been directed at establishing the determinants of foreign direct investment fdi with taxation policy identified as an important factor however the empirical literature has been limited in several respects with most work focused exclusively on host country tax regimes this paper seeks to extend the boundaries of fdi empirical inquiry by using a panel of nine investing tax exemption and tax credit countries over the period 1982 2000 constituting more than 85 of total us fdi inflows and incorporating home country tax rates to analyse two as yet unanswered questions first are corporate income tax rates an important determinant of fdi in the us secondly do investors from tax credit countries differ significantly in their tax response relative to those from tax exemption countries

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

do spillover benefits grow with rising foreign direct investment an empirical examination of the case of china using data from the chinese manufacturing industry for 2001 this article examines the impacts of foreign presence on the performance of locally owned chinese firms our key result supports a curvilinear functional form foreign penetration rates in excess of just about two thirds of industrial capital are associated with declining spillover benefits indicating the dominance of negative spillovers the curvilinear relationship is found to be particularly strong in labour intensive industries contrasting with a standard linear relationship in technology intensive sectors the finding of the complexity of spillover effects challenges the laissez faire view that the more inward foreign direct investment fdi the better and that inward fdi into all types of domestic industry is equally valuable in terms of performance benefits our findings argue for policy measures to strengthen domestically owned chinese industry to provide effective competition to foreign firms and to absorb the benefits from spill

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

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

real exchange rate risk expectations and the level of direct investment four models of direct investment are analyzed assuming various relationships between foreign and domestic production the direct effect of risk adjusted expected real foreign currency appreciation is to lower foreign capital cost thus stimulating direct investment however when costs of other inputs are also affected induced productivity changes or output price changes may offset the direct effect reducing direct investment pooled estimation results for u s annual bilateral direct investment flows to five industrialized countries show significant reductions associated with expected appreciation of real foreign currency and significant increases associated with risk these results are consistent with the model where in response to risk the multinational firm reduces exports to the foreign country but offsets this somewhat by increasing foreign capital input and production

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

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

impacts of business environment changes on global manufacturing in the chinese greater pearl river delta a supply chain perspective business operating conditions have changed substantially in the chinese greater pearl river delta gprd due to the chinese currency appreciation rising labour costs highly volatile oil prices and new processing trade policies such changes have triggered manufacturers to rethink their global operations this article studies potential global manufacturing trends from a supply chain perspective a mixed integer programming model suggests that these changes have negatively affected the region s competitive advantages as its labour intensive production mainly targets at the mass market and competes on low costs three production relocation trends are affirmed i e the relocation to lower cost areas within china lower cost asian countries and areas near end markets however it is also discovered that the gprd region still attracts businesses with its formation of industrial clusters the enhanced comparative advantage against competing regions in inland china or asian lower cost countries under high oil

dynamic lot sizing when demand timing is uncertain we characterize optimal solutions for the dynamic lot sizing problem when demand quantities are known but their timing is uncertain the characterization states that for some possible history of demands following a period of production there is a period with zero inventory before another period with production using this characterization we outline a dynamic program for the solution of these problems some results from sample problems illustrate the variety of optimal solutions that can occur

note a note on the dynamic lot size model with uncertainty in demand and supply processes in this paper we give some extensions of a result of nevison and burstein nevison c h m burstein 1984 the dynamic lot size model with stochastic lead times management sci 30 100 109 who discuss a dynamic lot sizing model with stochastic lead times they consider a situation in which the lead time distribution is unaltered by the amount which is ordered but is otherwise arbitrary and characterize the optimal solution in terms of points at which there is zero inventory here we give a more precise characterization and show that these results can be extended to a situation in which the demands are also stochastic and in which there is uncertainty relating to quantity as well as to the timing of demands and order arrivals the method of proof that we use is different from that used by nevison and burstein

modelling energy economy interactions abstract a model is developed to enable policy analysis for coping with changes in the price and or availability of energy a simulation approach is used and the model is validated for the turkish economy the model allows the evaluation of tax subsidy policies effects of foreign borrowing etc on near and medium term macroeconomic factors such as gnp consumption capital stock energy and non energy imports

the evolution of regional labour productivities in japanese manufacturing 1968 2004 essletzbichler j and kadokawa k the evolution of regional labour productivities in japanese manufacturing 1968 2004 regional studies the success of the japanese economy in the post war period was predicated on the rapid productivity catch up of its manufacturing sector to western economies although productivity varied widely among japanese regions this paper examines the evolution of labour productivity in japanese prefectures over the period 1968 2004 employing markov chain analysis variance shift share analysis and analysis of variance the paper demonstrates that during the period of fast productivity growth the japanese economy was characterized by an increasing polarization of productivity levels while the period of slow growth since the early 1990s produced convergence in regional productivity levels essletzbichler j et kadokawa k l evolution de la productivite regionale du travail dans l industrie japonaise de 1968 a 2004 regional studies la reussite de l economie japonaise pendant

foreign and domestic multinational presence in the uk the determinants of multinational presence in uk manufacturing industry in 1979 are analysed it is argued that maultinational presence may result from strategic interaction as well as other firm and industry characteristics the determinants of both foreign and uk multinational presence are estimated using a dataset that enables both types of multinational to be indentified results show an important effect of both scale and concentration on multinational presence

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 and economic growth in less developed countries an empirical study of causality and mechanisms we examine the causality between foreign direct investment fdi and economic growth for 66 developing countries taking into account their interaction with exports and technological change time series analysis for each country is conducted based on a method introduced by toda and yamamoto 1995 for testing granger causality in the presence of nonstationary time series the main findings of this article are fdi causes growth in several of the developing countries but the mechanism through which this works differs across countries and reverse causality from growth to fdi exists for many countries

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

dynamic version of the economic lot size model this article originally appeared in management science october 1958 volume 5 number 1 pp 89 96 published by the institute of management sciences a forward algorithm for a solution to the following dynamic version of the economic lot size model is given allowing the possibility of demands for a single item inventory holding charges and setup costs to vary over n periods we desire a minimum total cost inventory management scheme which satisfies known demand in every period disjoint planning horizons are shown to be possible which eliminate the necessity of having data for the full n periods

the causality between fdi and sector specific production in turkey evidence from threshold cointegration with regime shifts abstractthis article considers bidirectional nonlinear cointegration relation between fdi and industrial output in turkey the data cover the monthly period 2005 1 2013 10 for the time series of total industrial production 36 sub industrial sectors production and fdi following nonlinear threshold cointegration and vecms the article yields that i total industrial production and nine sub industrial productions have positive long run impact on fdi with significant error corrections ii six sub industrial productions have short term influence on fdi iii fdi has long run positive impulse on total industrial production and nine sub industrial productions with some significant error corrections and iv fdi affects four sub industrial productions in the short run as well as in the long run the results of vecms from i also reveal that the all short term adjustment parameters are found significant and powerful in 10 typical regimes regime 1s and in 5 extreme regimes regime 2s finally the outcom

the 45 years of foreign direct investment research approaches advances and analytical areas what are the main tenets associated with foreign direct investment fdi what research has been performed in the area of fdi to date which direction should research in this field proceed in the days to come as there is no article with comprehensive coverage of all the studies on fdi we review empirical research in this area between the years 1970 and 2014 as an attempt to answer these questions we identify the advances and analytical areas of fdi research list out the impactful research papers and authors theoretical and methodological approaches leading journals and variables of interest that exist in the area of fdi research as the research into the fdi has advanced significantly over the last two decades we have also tried to point out the gaps in the literature taken together our paper highlights the heterogeneous nature of fdi across countries and firms

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

is foreign aid a vanguard of foreign direct investment a gravity equation approach summary this paper investigates whether and how foreign aid facilitates foreign direct investment fdi flows into less developed countries we employ a large data set of source recipient country pairs and conduct gravity equation type estimation our empirical methodology enables us to examine an effect through which aid from a donor country promotes fdi from the same donor in particular which we call a vanguard effect we find that foreign aid in general does not have any significant effect on fdi however when we allow for differences in the size of aid effects across donor countries we find robust evidence that foreign aid from japan in particular has a vanguard effect i e japanese aid promotes fdi from japan but does not attract fdi from other countries

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