Engendering Foreign Direct Investment: Family Structure, Labor Markets and International Capital Mobility

AbstractDuring the last two decades, Poland has become a large recipient of inward foreign direct investment (FDI). This article uses standard panel data techniques to study empirically the determinants of inward FDI in Poland during the period 1996–2015 made by multinational enterprises coming from the old European Union (EU)-15 member states. The estimated specification is derived from the knowledge-capital (KC) model and includes two types of capital: human and physical. The assembled empirical evidence points to the horizontal motive as the primary reason for undertaking FDI in Poland by multinational firms based in the old EU-15 member states. Moreover, the KC model does not seem to explain better the pattern of inward FDI in Poland compared to the standard ad hoc gravity model of international capital mobility.

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Foreign Direct Investment and Financial Development in Estimating International Capital Mobility

Journal of Applied Business and Economics ◽

10.33423/jabe.v22i9.3679 ◽

2020 ◽

Vol 22 (9) ◽

Keyword(s):

Foreign Direct Investment ◽

Financial Development ◽

Capital Mobility ◽

Direct Investment ◽

International Capital ◽

International Capital Mobility

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Multi-Process-Based Maximum Entropy Bootstrapping Estimator: Application for Net Foreign Direct Investment in ASEAN

Economies ◽

10.3390/economies7030064 ◽

2019 ◽

Vol 7 (3) ◽

pp. 64

Author(s):

Arisara Romyen ◽

Chukiat Chaiboonsri ◽

Satawat Wannapan ◽

Songsak Sriboonchitta

Keyword(s):

Foreign Direct Investment ◽

Maximum Entropy ◽

Capital Mobility ◽

Direct Investment ◽

Bootstrap Method ◽

Computational Modelling ◽

Cross Entropy ◽

International Capital Mobility ◽

Order Stochastic Dominance ◽

Second Order Stochastic Dominance

Due to a broad consensus in the engaging of global economic integrations, host countries encounter a number of challenges, especially in international capital mobility. Foreign direct investment (FDI) becomes a pillar for economic development. This study explores which Association of Southeast Asian Nations (ASEAN)-6 countries are good representatives to inform the directions of FDI. For computational modelling, the AR-GARCH model was created using the maximum entropy bootstrap estimation. Nonparametric techniques consisting of the maximum entropy bootstrap method and cross-entropy algorithm were applied. The results show that Indonesia has the nearest cross-entropy (CE) value compared to the whole entropy value, followed by Thailand and Singapore. Furthermore, it is consistent with the first- and second-order stochastic dominance analyses. Additionally, the structural dependence of capital movements is displayed to deeply investigate the capital flow relation among the countries. Consequently, the performances of FDI in Indonesia, Thailand, and Singapore can significantly convey the scenario of FDI across ASEAN.

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Foreign Direct Investment, Endogenous Tariffs, and Preferential Trade Agreements

The B E Journal of Economic Analysis & Policy ◽

10.2202/1935-1682.1800 ◽

2007 ◽

Vol 7 (1) ◽

Cited By ~ 16

Author(s):

Emily J Blanchard

Keyword(s):

Foreign Direct Investment ◽

Capital Mobility ◽

Direct Investment ◽

Effective Means ◽

Trade Agreements ◽

Preferential Trade Agreements ◽

Preferential Trade ◽

Investment Policies ◽

International Capital Mobility ◽

Generalized System Of Preferences

Abstract This paper examines the complementarity between international trade and investment policies, and argues that preferential trade agreements may be a particularly effective means for harnessing the tariff liberalizing potential of foreign direct investment. A simple two country model demonstrates that export-platform foreign investment induces unilateral tariff liberalization by the investment-source country, suggesting that international capital mobility may substitute partially for multilateral forums such as the WTO in achieving efficient tariffs. A multi-country extension of the model in which countries can compete for foreign investors via subsidies then develops an efficiency argument in favor of discriminatory tariff allowances such as Article XXIV of the GATT or the Generalized System of Preferences. When small countries can earn preferential tariff treatment from a large trading counterpart by encouraging local export-platform investment (or by discouraging import competing investment), the equilibrium tariff level will be lower when discriminatory tariffs are possible rather than when they are not.

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