scholarly journals Governance and foreign direct investment in Latin America: A panel gravity model approach

2013 ◽  
Vol 50 (1) ◽  
pp. 107-131 ◽  
Author(s):  
Turan Subasat ◽  
◽  
Sotirios Bellos
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Gravity Model ◽  
Direct Investment ◽  
Model Approach

scholarly journals Do Trade and Investment Agreements Promote Foreign Direct Investment within Latin America? Evidence from a Structural Gravity Model

Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1882
Author(s):  
Marta Bengoa ◽  
Blanca Sanchez-Robles ◽  
Yochanan Shachmurove
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Gravity Model ◽  
Latin American ◽  
Low Income ◽  
Direct Investment ◽  
Trade Agreement ◽  
Low Income Countries ◽  
Regional Trade ◽  
Investment Protection

Latin America has experienced a surge in foreign direct investment (FDI) in the last two decades, in parallel with the ratification of major regional trade agreements (RTAs) and bilateral investment treaties (BITs). This paper uses the latest developments in the structural gravity model theory to study if the co-existence of BITs and two major regional agreements, Mercosur and the Latin American Integration Association (ALADI), exerts enhancing or overlapping effects on FDI for eleven countries in Latin America over the period 1995–2018. The study is novel as it accounts for variations in the degree of investment protection across BITs within Latin America by computing a quality index of BITs. It also explores the nature of interactions (enhancing/overlapping effects) between RTAs and BITs. The findings reveal that belonging to a well-established regional trade agreement, such as Mercosur, is significantly more effective than BITs in fostering intra-regional FDI. Phasing-in effects are large and significant and there is evidence of enhancing effects. Results within the bloc are heterogeneous: BITs exert a positive, but small effect, for middle income countries. However, BITs are not effective in attracting FDI in the case of middle to low income countries, unless these countries ratify BITs with a high degree of investment protection.

Does FDI Attract Immigrants? An Empirical Gravity Model Approach

2018 ◽  
Vol 53 (1) ◽  
pp. 237-253
Author(s):  
James T. Bang ◽  
Raymond MacDermott
Keyword(s):  
Foreign Direct Investment ◽  
Gravity Model ◽  
Direct Investment ◽  
Oecd Country ◽  
Oecd Countries ◽  
Dynamic Panel ◽  
Panel Methods ◽  
Using Data ◽  
And Migration ◽  
Model Approach

This study tests whether foreign direct investment (FDI) and migration are substitutes or complements using data on bilateral FDI flows from countries that are members of the Organisation for Economic Co-operation and Development (OECD) and bilateral immigration to OECD countries over the period 1996 to 2006. Our most conservative estimates, using dynamic panel methods, suggest that a $1 million increase in FDI to another OECD country increases immigration by about 60 migrants, while the same increase to non-OECD locations increases migration by about 1,000. These findings support a core-periphery model of globalization and development.

scholarly journals The Determinants of Vietnam’s Exports to CPTPP Members: A Gravity Model Approach

2020 ◽  
Vol 11 (5) ◽  
pp. 341
Author(s):  
Phan Thanh Hoan
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gravity Model ◽  
Direct Investment ◽  
Impact Factors ◽  
Income Gap ◽  
Trade Potential ◽  
The Impact ◽  
Economic Size ◽  
Model Approach

This study examines the determinants of Vietnam’s export to CPTPP by applying the gravity model to panel data for the period of 2003-2016. Besides the conventional variables such as economic size and distance between trade parties; exchange rate, bilateral tariff, income gap, and foreign direct investment (FDI) are included in the model. The results show that the export of Vietnam to CPTPP is influenced by economic size (GDP), income gap, bilateral tariffs, FDI, and exchange rate. Among the impact factors, economic size, exchange rate, and income gap have significant impact on Vietnam's exports to CPTPP. The trade potential between Vietnam and CPTPP is also calculated based on gravity model results. Vietnam’s export to CPTPP is predicted to expand significantly in its member markets. 

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