scholarly journals International Financial Competitiveness and Incentives to Foreign Direct Investment

2010 ◽  
Vol 230 (1) ◽  
Author(s):  
Axel Jochem
Keyword(s):  
Foreign Direct Investment ◽  
Capital Markets ◽  
Direct Investment ◽  
Financial Integration ◽  
Positive Impact ◽  
Essential Feature ◽  
Real Economy ◽  
International Capital ◽  
International Capital Markets ◽  
Financial Competitiveness

SummaryInternational financial integration has become an important factor for economic performance in the globalisation process. Access to international capital markets is crucial for a country’s ability to meet its financial needs and to keep up with the challenges of a changing global landscape. In this paper, “financial competitiveness” is interpreted as the attractiveness of a country as perceived by foreign investors, which is reflected in refinancing costs in international capital markets. The study concentrates on foreign direct investment (FDI), which is an essential feature of the globalisation process and has immediate implications for the real economy. An index of international financial competitiveness is calculated which is given by the ratio of the market value to the book value of inward FDI stocks. For a panel of five advanced economies from 1980 to 2006 it is shown that price competitiveness, stable inflation rates and registered patents have a positive impact on the index. Institutional factors like EMU membership or Anglo-American legislation also play a role. Financial competitiveness in turn encourages FDI inflows whereas it benefits fixed investment relative to M&A. There is also some evidence that an innovative environment accelerates investment decisions by promoting competition among investors.

scholarly journals MANAGEMENT OF FOREIGN DIRECT INVESTMENT IN TERMS OF ITS REGIONAL LOCALIZATION IN SLOVAKIA

2014 ◽  
Vol 2 ◽  
pp. 43-49
Author(s):  
Rastislav Kotulič ◽  
Peter Adamišin ◽  
Ivana Kravčáková Vozárová
Keyword(s):  
Foreign Direct Investment ◽  
Regional Development ◽  
Direct Investment ◽  
Positive Impact ◽  
Slovak Republic ◽  
National Level ◽  
International Capital ◽  
Regional Localization ◽  
Neoclassical Theory

The phenomenon of globalization had resulted in strengthening of the international capital movement in the 1990s, which led to an intensive retraction of small and open economies into the globalization process.  The foreign direct investment (FDI) has since gained its importance, especially in the area of local and regional development.  Its positive impact is reflected at the local, as well as at the national level.  FDI is the means of ensuring technology transfer, increasing employment, as well as improving the quality of the workforce.The aim of this article is to assess the stock of foreign direct investment and its localization in the Slovak regions at NUTS III level.  From the content perspective, the article analyzes the economic development of the Slovak region by region, based on the stock of FDI, by using models from neoclassical theory of regional development for the period from 1999 to 2009.  We assumed that the different regional stock of foreign direct investment would have a significant impact on the economic differentiation of the regions in the Slovak Republic.  This analysis confirmed our assumption.

Part IV Market Institutions And International Capital Markets, 13 Conclusion

2021 ◽  
Author(s):  
Jordan Cally
Keyword(s):  
Capital Markets ◽  
International Markets ◽  
Asian Financial Crisis ◽  
Real Economy ◽  
International Capital ◽  
Market Institutions ◽  
International Capital Markets ◽  
The Real ◽  
Trading Patterns ◽  
Regulatory Landscape

This concluding chapter discusses how capital markets are changing, dramatically so. The massive innovation in investment products over the last 30 years is giving way to shifting trading patterns, changing investor profiles, and new forms of capitalism and finance. The dynamics of international markets have changed, even since the Asian financial crisis, when ‘contagion’ entered the financial lexicon. Now, information, investments, and capital can be transmitted instantaneously; so can risk. Indeed, the new markets defy the old rules. Technology pervades everything, giving rise to a new catchphrase, ‘fintech’. As financial markets have become inexorably interconnected, at the same time they appear increasingly disconnected from the real world, the real economy. The chapter then looks at the topography of the new regulatory landscape. The big economies, and their regulatory approaches, will continue to impact strongly international markets. But there are more and more big economies with resurgent capital markets, so the international dynamics will change.

scholarly journals International Trade and Foreign Direct Investment as Innovation Factors of the U.S. Economy

2014 ◽  
Vol 41 (1) ◽  
pp. 60-75
Author(s):  
Tomasz M. Napiórkowski
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Positive Impact ◽  
The United States ◽  
Annual Data ◽  
Main Portion ◽  
The Impact ◽  
Total Impact ◽  
The U.S

Abstract The aim of this research is to asses the hypothesis that foreign direct investment (FDI) and international trade have had a positive impact on innovation in one of the most significant economies in the world, the United States (U.S.). To do so, the author used annual data from 1995 to 2010 to build a set of econometric models. In each model, 11 in total) the number of patent applications by U.S. residents is regressed on inward FDI stock, exports and imports of the economy as a collective, and in each of the 10 SITC groups separately. Although the topic of FDI is widely covered in the literature, there are still disagreements when it comes to the impact of foreign direct investment on the host economy [McGrattan, 2011]. To partially address this gap, this research approaches the host economy not only as an aggregate, but also as a sum of its components (i.e., SITC groups), which to the knowledge of this author has not yet been done on the innovation-FDI-trade plane, especially for the U.S. Unfortunately, the study suffers from the lack of available data. For example, the number of patents and other used variables is reported in the aggregate and not for each SITC groups (e.g., trade). As a result, our conclusions regarding exports and imports in a specific SITC category (and the total) impact innovation in the U.S. is reported in the aggregate. General notions found in the literature are first shown and discussed. Second, the dynamics of innovation, trade and inward FDI stock in the U.S. are presented. Third, the main portion of the work, i.e. the econometric study, takes place, leading to several policy applications and conclusions.

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