Implications of Canada’s restrictive FDI policies on employment and productivity

2019 ◽  
Vol 2 (2) ◽  
pp. 142-166
Author(s):  
Walid Hejazi ◽  
Daniel Trefler
Keyword(s):  
Fdi Policies

scholarly journals Foreign Direct Investment and Economic Growth in the Arab Region: The Case of Knowledge Spillover Effects

2016 ◽  
Vol 9 (1) ◽  
pp. 106 ◽  
Author(s):  
Nayef Al-Shammari ◽  
Huda Al-Rashid
Keyword(s):  
Growth Models ◽  
Spillover Effects ◽  
Policy Implications ◽  
Firm Level ◽  
Fdi Inflows ◽  
Arab Region ◽  
Fdi Spillovers ◽  
Absorptive Capacities ◽  
Fdi Policies ◽  
Capital Development

<p>This research aims to focus on how institutional barriers in the Arab region may account for losses in FDI inflows along with their potential technology spillover effects, as well as to show how the deficiency of absorptive capacities serve as an important factor for attracting inflows. The analysis relies on endogenous growth models at an aggregate regional level and a microeconomic firm-level. Findings based on linear OLS regressions, reveal a positive correlation between improved institutional factors and potential FDI spillovers, with significance varying in certain countries. Policy implications involve having targeted FDI policies to enhance absorptive capacities, improving information asymmetry to reduce corruption, and enhancing the labor market regulatory framework to improve human capital development as an incentive for FDI inflows.</p>

Do Trade Openness, Structure of the Economy and FDI Affect Energy Intensity in India? A Case for Including Energy Intensity as a Policy Parameter

2017 ◽  
Vol 65 (1-4) ◽  
pp. 172-192
Author(s):  
Rajneesh
Keyword(s):  
Gross Domestic Product ◽  
Energy Intensity ◽  
Trade Openness ◽  
Fdi Inflows ◽  
Test Methodology ◽  
Long Run ◽  
Auto Regressive ◽  
Domestic Investments ◽  
Bounds Test ◽  
Fdi Policies

This article examines the existence of a long-run relationship between energy intensity, trade openness, structure of the economy and FDI inflows in India from 1973 to 2013 using auto regressive distributive lag (ARDL) bounds test methodology. The results indicate that (a) there is a long-run cointegration among the analysed variables and (b) an increase in trade openness, share of services in gross domestic product (GDP) and share of FDI in domestic investments results in lowering energy intensity. The study also finds that the magnitude of impact of the share of industry in increasing energy intensity in India outweighs the combined energy intensity lowering impact of trade openness, share of services and share of FDI. The study validates tenets of the theory of heterogeneity of firms in international trade and pitches for including ‘energy intensity’ as a policy parameter in promoting ‘energy-frugal’ technologies via Make-in-India initiative, trade and FDI policies.

scholarly journals The Development Trajectories of Thailand and Sri Lanka: A Comparative Analysis

2019 ◽  
Vol 10 (3) ◽  
pp. 395-416
Author(s):  
Reena Marwah ◽  
Sanika Sulochani Ramanayake
Keyword(s):  
Comparative Analysis ◽  
Sri Lanka ◽  
Political Stability ◽  
Income Group ◽  
Middle Income ◽  
Middle Income Group ◽  
Key Policy ◽  
Key Drivers ◽  
Fdi Policies ◽  
Development Trajectories

The raison d’être to compare the development trajectories of two Asian economies, viz. Thailand and Sri Lanka, stems from the fact that both countries are in the middle-income level. Hence, a comparative analysis of the development trajectories of the two countries during 2009–2019, both being neighbours with religious and cultural affinities, as well as members in Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), has been undertaken. The key objective is to decipher key policy lessons for Sri Lanka (which has been in the lower middle-income group) from Thailand’s development path (which has placed the latter in the upper middle-income group). This article also elucidates the key drivers of economic growth along with the challenges that the two countries must contend with, to attain higher growth levels. Economic drivers, such as tourism, foreign direct investment (FDI) policies and political stability are concomitant for their development.

Australia-China-Africa investment partnerships

2016 ◽  
Vol 12 (1) ◽  
pp. 61-82 ◽  
Author(s):  
Alice de Jonge
Keyword(s):  
Economic Development ◽  
Direct Investment ◽  
Recent Literature ◽  
Future Research ◽  
Energy Research ◽  
Content Type ◽  
Laws And Policies ◽  
Research And Education ◽  
Fdi Policies ◽  
Practical Implications

Purpose – This paper aims to examine the potential for “triangular cooperation” between investment partners from Australia, China and host African nations to contribute to the economic development in Africa. Design/methodology/approach – The paper discusses a number of complementarities between Australian and Chinese investors in mining, agriculture, energy, research and education and finance – sectors vital to Africa’s future development. These complementarities are examined in light of recent development studies on the benefits of triangular cooperation and recent literature examining links between foreign direct investment (FDI) policy and economic development. Findings – The paper concludes that there is much to be gained by making the most of the existing and potential synergies between Australian, Chinese and local investors in African settings. Research limitations/implications – The implications of this paper are, first, that African nations should keep the benefits of triangular cooperation in mind when designing FDI policies and, second, that Australian and Chinese investors should be more willing to explore potential investment partner synergies when investing in Africa. The paper also suggests an agenda for future research into how good design of FDI policies might best promote healthy economic development in African nations. Practical implications – Australian and Chinese companies should be more willing to explore potential avenues for cooperation when investing in Africa, while African governments should be more mindful of how rules and policies can maximise the local benefits of FDI. Social implications – African governments should be more mindful of the quality, rather than the quantity of FDI when drafting relevant laws and policies. Originality/value – The value of the paper is in applying the concept of “triangular cooperation” to direct investment. The paper also provides an original focus on Australia-China investment synergies in African settings.

Policy Learning or Diffusion: How China Opened to Foreign Direct Investment

2009 ◽  
Vol 9 (3) ◽  
pp. 399-432 ◽  
Author(s):  
Min Ye
Keyword(s):  
Foreign Direct Investment ◽  
South Korea ◽  
Economic Reform ◽  
Local Governments ◽  
Direct Investment ◽  
Diffusion Mechanism ◽  
Catch Up ◽  
Fdi Policies ◽  
Economic Zones ◽  
Developmental Policies

When China embarked on economic reform in the late 1970s, its leaders aspired to learn from Japan's developmental policies that were restrictive of foreign capital. In the 1990s, China strove again to emulate Japan and South Korea in restricting foreign direct investment and promoting indigenous corporations. Despite these efforts, China's industrial catch-up was in fact led by FDI, in sharp contrast to the classic Japanese/Korean paradigm where FDI was strictly circumvented. Why was China unsuccessful in learning restrictive FDI policies? How did a new developmental path emerge in China? The answer lies in China's strong networks with diaspora communities. Through a diffusion mechanism, ties between local governments and diaspora capital helped initiate and catalyze China's FDI liberalization, despite the central efforts to learn from Japan and South Korea. Two critical reform episodes are examined: (1) the establishment of special economic zones and (2) the reform of state-owned enterprises.

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