scholarly journals The DNA of New Exporters: Spin-offs and FDI at the Extensive Margin of Trade

2020 ◽  
Vol 2 (3) ◽  
pp. 397-408
Author(s):  
Bernardo S. Blum ◽  
Sebastian Claro ◽  
Ignatius Horstmann ◽  
Trevor Tombe

Other than that new exporters account for a large part of aggregate export growth, we know little else. We document that aggregate export growth in Chile is driven by only a few new exporters. These exporters are new business entities, operate new plants, and behave much like experienced exporters: they start large and have high survival rates. Moreover, 70 percent of these new firms are owned by existing businesses and are likely the by-product of either domestic spin-offs or foreign direct investment (24 percent). By focusing on the average new exporter, the existing models of new exporter dynamics miss these key features of export growth. (JEL F14, F23, L22, L60, M13, O14, O19)

2019 ◽  
Vol 14 (2) ◽  
pp. 26-32
Author(s):  
Nur Hayati Abd Rahman ◽  
Khairunnisa Abd Samad ◽  
Shahreena Daud ◽  
Zarinah Abu Yazid

With help from both domestic and international markets, ASEAN countries are able to catch-up withthe latest economic development if they can sustain high economic growth for a long-period of time. To doso, the resources available in countries such as capital and labors should fully be utilized up to theoptimum level. The capital itself can be in many forms such as investment. Since most of the ASEANcountries are categorized as developing countries, the reliance on foreign direct investment (FDI) as asource of growth is highly needed as it helps the economy to step on a higher stage of economic developmentvia the roles of foreign experts and technological transfer. In ensuring a higher level of investment, there isa need to ensure a high level of intellectual property protection since it assists in promoting invention,innovation and new business development. In opposite, lacking in protection might discourage foreigninvestors to invest in the countries, thus limiting the ability of the countries to grow further. Therefore, theaim of this paper is to examine whether strong intellectual property protection will really help in attractingmore foreign investors to invest in ASEAN-5 countries. Using annual data from 2007 to 2016, panel dataestimation using random effect is employed. It was found that the ASEAN-5 countries should strengthentheir intellectual property protection in order to stimulate higher foreign investments. Nevertheless, inbetween copyright and patents, copyrights protection gives significant effect to the FDI inflows relative tothe latter one. It indicates that the countries are slowly moving out from the production-based economy andcatching-up towards a digital economy. Keywords: ASEAN-5, foreign direct investment, intellectual property protection, digital economy, copyrights


1997 ◽  
Vol 51 (2) ◽  
pp. 301-333 ◽  
Author(s):  
C. S. Eliot Kang

An analyst of U.S. foreign economic policy observes that each wave of antiforeign sentiment associated with the surge of foreign direct investment (FDI) coming into the United States washes ashore a flotsam of restrictive and exclusionary laws that recedes slightly or becomes buried and forgotten in the sand only to advance again with a new wave. During the late 1980s, the controversy generated by the sharp rise of Japanese acquisitions in the United States washed ashore the latest flotsam of regulatory measures and further advanced the tangle of rules and regulations targeting inward foreign direct investment (IFDI). Of the various types of FDI, the present study is concerned mainly with the policy change toward foreign investment in an already established domestic business. This type of investment often involves merger or acquisition and is distinct from a “greenfield” investment where the foreign investor establishes “from scratch” a new business in the host economy.


THE BULLETIN ◽  
2021 ◽  
Vol 2 (390) ◽  
pp. 70-80
Author(s):  
A. M. Petrov ◽  
L. M. Sembieva ◽  
N. I. Golysheva ◽  
R. A. Ivanov ◽  
N. K. Muravitskaya

Being one of the most important tools of the national economy, foreign direct investment provides means for production expansion, creating employment opportunities and jobs, accelerating structural changes, improving the country’s financial standing in foreign relations, increasing its foreign exchange reserves, reducing budget holdbacks, and improving its credit rating. In Russia, foreign investments are primarily made through capital contributions by registered foreign residents. According to official reports, in the total annual capital inflows into the Russian Federation, 10 to 12% are attributable to foreign direct investment, 1 to 2% - to indirect investment, and up to 80% - to other investments. The current state of the world economy is characterized by many challenges: from increased competition and a new round of trade wars between major economic powers to a shift in emphasis in approaches to assessing the effectiveness of economic entities from exclusively financial to mainly non-financial, including environmental and social aspects. The corresponding economic conditions, coupled with significant political and economic pressure from a number of countries, sharply raise the issue of developing new approaches to determining the effectiveness of their own activities. Determining the effectiveness of business entities is necessary in order to ensure timely and adequate assessment of their business model from the perspective of key stakeholders and to develop an effective strategy for long-term sustainable functioning in the new business environment. This issue is particularly relevant for those economic entities that implement their activities, including through foreign representative offices. Determining the effectiveness of business entities ' representative offices abroad and evaluating their strategic performance, in addition to differences in approaches to accounting and public reporting, is also complicated by the specifics of the legal status of representative offices of economic entities, as well as the processes of legal regulation of their activities in different countries.


An outside direct venture (FDI) is an interest as an administering ownership in a business in single nation by a unit conventional in an alternate nation. Remote Direct speculation (FDI) is a most significant piece of an Indian Economic framework to build up the country. FDI plays an exceptional and developing job in worldwide business. The Foreign direct speculation viewed as the development, apparatus and hardware are the quick development and extension of the India. street and rail system is the essential piece of remote direct speculation and arrangements the market size, transportation, quality, political/financial solidness and unhindered commerce homes are the same old thing/venture atmosphere, Labor expenses and transparency. FDI assumes a fundamental job in the long haul advancement of a nation as a wellspring of capital as well as for improving appeal of the inward economy during exchange of innovation, combination framework, raising profitability and making new business openings. In India, FDI is estimated as a dynamic instrument, which aides in achieving independence in different subdivisions and in general advancement of the market. India has powerfully supported open interest in foundation as well as included private segment so as to give upgrade to the infrastructural development. Remote Direct Investment (FDI) is frequently observed as primary substances for monetary development in the creating nations like India. FDI contacts the monetary development by motivating residential venture, expanding human capital foundation and by help the innovation move in the assembly nations. The primary reason for this exploration study is to investigate the Growth and Infrastructure advancement of FDI on the financial development of India


The market economy opens wide opportunities for intensification of innovation, so therefore its characteristic feature is the acquisition, use of new knowledge and transformation of knowledge and technologies into a full-fledged factor of production. One of the characteristic features of the market economy and the national economy in general is the ability to attract foreign direct investment, which determines the rapid pace of the country's economic development. Foreign investments, in turn, are indispensable for Ukrainian enterprises in today's realities. Foreign direct investment indicates the long-term interest of foreign investors in the functioning of enterprises, it also stimulates development of enterprises through access to foreign capital. It is a way of development stimulation of enterprises through access to foreign capital. Thus, FDI is a way of combating the problem of low domestic savings. The dynamic development of market relations in Ukraine in the context of the transitive type market transformation requires new approaches to economic management both at the macro level and at the level of individual enterprises. The problems of creating such mechanisms for managing the activities of enterprises, which, in addition to ensuring a sufficient level of solvency, liquidity and profitability, would contribute to the direct growth of the general level of scientific and technical knowledge and, as a result, its use in order to boost business efficiency. In general, innovation is a novelty in the field of engineering, technology, labor organization or management, based on the use of scientific advances and best practices. Innovation is the result of innovative activity, as an activity aimed at transforming research and development or a new approach to the process of providing services. As a result of research the basic problems of financing of innovative activity of the enterprises are studied. Emphasis is placed on the fact that innovation activity involves attracting investment resources of foreign business entities to the process of development and implementation of innovations.


2015 ◽  
Vol 15 (4) ◽  
pp. 2079-2109 ◽  
Author(s):  
Raffaello Bronzini

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.


Encyclopedia ◽  
2021 ◽  
Vol 1 (4) ◽  
pp. 1026-1037
Author(s):  
Aneta Bobenič Hintošová

Definition: Foreign direct investment can be defined as an investment made by an entity (usually a company) incorporated in a home country in the business interests of a host country, in the form of either establishing new business operations or acquiring controlling interest in existing business assets. Foreign direct investment is expected to meet the following characteristics: (1) the capital movement is typically accompanied by further technological, material, information, financial or personnel flows; (2) the foreign direct investor effectively controls facilities abroad; and (3) the investor has a long-term interest in the host country.


Significance The deal also included a payment by Sudan of USD335mn as compensation to US victims of terrorist attacks. Impacts Public support for the normalisation among some political factions will help the government to manage broader criticisms. Political pressure on the transitional government will continue to mount unless there are clear economic improvements. Sudanese companies will solicit new business partners abroad, but overall foreign direct investment inflows will remain low.


Subject Vietnam economic outlook. Significance Vietnam's economy grew 6.2% last year, below the government’s 6.7% target, reflecting a severe drought, but still one of the world's fastest-growing economies. The expansion was supported by much faster export growth and higher foreign direct investment (FDI) than in the rest of East Asia. Policy has helped keep inflation and the currency reasonably stable while export diversification and trade liberalisation have improved the external position. Impacts More progress expanding the private sector and reforming state-owned enterprises would help Vietnam’s economic development. Vietnam’s dollar export growth has outpaced China and South-east Asia’s in recent years, and this will likely continue. The Trans-Pacific Partnership trade deal’s failure will likely mean less Vietnamese labour market reform.


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