Comments by Somkiat Tangkitvanich, on Impact of Extensive and Intensive Margins of Foreign Direct Investment on Domestic Corporate Performance: Evidence from Japanese Automobile Parts Suppliers

2017 ◽  
Vol 16 (2) ◽  
pp. 212-213
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Corporate Performance ◽  
Extensive And Intensive Margins ◽  
Automobile Parts ◽  
Parts Suppliers

scholarly journals Impact of Extensive and Intensive Margins of Foreign Direct Investment on Domestic Corporate Performance: Evidence from Japanese Automobile Parts Suppliers

2017 ◽  
Vol 16 (2) ◽  
pp. 187-209
Author(s):  
Toshiyuki Matsuura
Keyword(s):  
Foreign Direct Investment ◽  
Instrumental Variable ◽  
Direct Investment ◽  
Corporate Performance ◽  
Firm Level ◽  
Extensive And Intensive Margins ◽  
Level Data ◽  
Automobile Parts ◽  
The Impact ◽  
Parts Suppliers

This study uses firm-level data on Japanese automobile parts suppliers to investigate the impact of foreign direct investment (FDI) on domestic corporate performance. We use the automobile makers’ FDI as an instrumental variable for suppliers’ FDI and estimate the impact of both the extensive and intensive margins of FDI. We find that whereas the intensive margin of FDI does not significantly impact corporate performance, the extensive margin positively influences sales and total factor productivity. Furthermore, the impact of the initial FDI entry brings stronger effects than that of subsequent FDI flows.

scholarly journals Indonesian And Australian Tax Policy Implementation In Food And Agriculture Industry

2014 ◽  
Vol 3 (1) ◽  
pp. 75-84
Author(s):  
Martin Surya Mulyadi ◽  
Maya Safira Dewi ◽  
Yunita Anwar ◽  
Hanggoro Pamungkas
Keyword(s):  
Foreign Direct Investment ◽  
Significant Influence ◽  
Tax Policy ◽  
Income Tax ◽  
Direct Investment ◽  
Corporate Performance ◽  
Tax Incentives ◽  
Indonesian Government ◽  
Food And Agriculture ◽  
Agriculture Industry

Tax policy is one of the most important policy in consideration of investment development in certain industry. Research by Newlon (1987), Swenson (1994) and Hines (1996) concluded that tax rate is one of the most important thing considered by investors in a foreign direct investment. One of tax policy could be used to attract foreign direct investment is income tax incentives. The attractiveness of income tax incentives to a foreign direct investment is as much as the attractiveness to a domestic investment (Anwar and Mulyadi, 2012). In this paper, we have conducted a study of income tax incentives in food and agriculture industry; where we conduct a thorough study of income tax incentives and corporate performance in Indonesian and Australian food and agriculture industry. Our research show that there is a significant influence of income tax incentives to corporate performance. Based on our study, we conclude that the significant influence of income tax incentives to Indonesian corporate performance somewhat in a higher degree than the Australian peers. We have also concluded that Indonesian government provide a relatively more interesting income tax incentives compare to Australian government. However, an average method of net income –a method applied in Australia– could be considered by Indonesian government to avoid a market price fluctuation in this industry.

The Effects of Extensive and Intensive Margins of FDI on Domestic Employment: Microeconomic Evidence from Italy

2015 ◽  
Vol 15 (4) ◽  
pp. 2079-2109 ◽  
Author(s):  
Raffaello Bronzini
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Positive Relationship ◽  
Extensive Margin ◽  
Matching Method ◽  
Intensive Margin ◽  
Extensive And Intensive Margins ◽  
Skill Composition ◽  
Foreign Operations

Abstract In this paper we verify whether enterprises that have started to produce abroad have reduced employment at home after the first foreign investment (extensive margin). Next, we assess whether changes in foreign employment induce changes in domestic employment for a sample of multinationals that have already established activities abroad (intensive margin). Using matching method and diff-in-diffs estimates, we find that two years after the first foreign investment domestic employment of investing firms is slightly higher than that of domestic enterprises, but mainly among those that have undertaken horizontal foreign direct investment. In multinationals that have already activated foreign operations we find a positive relationship between foreign and domestic employment. Our findings suggest that the skill composition of domestic workforce does not change neither at the extensive nor at the intensive margin of FDI.

scholarly journals Indonesian And Australian Tax Policy Implementation In Food And Agriculture Industry

2016 ◽  
Vol 3 (1) ◽  
pp. 75
Author(s):  
Martin Surya Mulyadi ◽  
Maya Safira Dewi ◽  
Yunita Anwar ◽  
Hanggoro Pamungkas
Keyword(s):  
Foreign Direct Investment ◽  
Significant Influence ◽  
Tax Policy ◽  
Income Tax ◽  
Direct Investment ◽  
Corporate Performance ◽  
Tax Incentives ◽  
Indonesian Government ◽  
Food And Agriculture ◽  
Agriculture Industry

<p>Tax policy is one of the most important policy in consideration of investment development in certain industry. Research by Newlon (1987), Swenson (1994) and Hines (1996) concluded that tax rate is one of the most important thing considered by investors in a foreign direct investment. One of tax policy could be used to attract foreign direct investment is income tax incentives. The attractiveness of income tax incentives to a foreign direct investment is as much as the attractiveness to a domestic investment (Anwar and Mulyadi, 2012). In this paper, we have conducted a study of income tax incentives in food and agriculture industry; where we conduct a thorough study of income tax incentives and corporate performance in Indonesian and Australian food and agriculture industry. Our research show that there is a significant influence of income tax incentives to corporate performance. Based on our study, we conclude that the significant influence of income tax incentives to Indonesian corporate performance somewhat in a higher degree than the Australian peers. We have also concluded that Indonesian government provide a relatively more interesting income tax incentives compare to Australian government. However, an average method of net income –a method applied in Australia– could be considered by Indonesian government to avoid a market price fluctuation in this industry.</p>

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