Found 4 article(s) for author 'Foreign Direct Investment'

Multinational Activity in Emerging Markets: How and When Does Foreign Direct Investment Promote Growth?

Multinational Activity in Emerging Markets: How and When Does Foreign Direct Investment Promote Growth? Laura Alfaro, 2017, Paper, “Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key driver of this phenomenon has been the cross-border production, foreign investment, and trade both final and intermediate goods by multinational corporations. Research has sought to understand how foreign direct investment (FDI) affects host economies. This paper reviews the main theories and empirical evidence of two streams of literature: the mechanisms by which multinational activity might create positive effects and externalities to countries and the role of complementary local conditions, also known as “absorptive capacities,” that allow a country to reap the benefits of FDI paying particular attention to the role of factor markets, reallocation effects, and the linkages generated between foreign and domestic firms.Link

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Transportation Cost and the Geography of Foreign Investment

Transportation Cost and the Geography of Foreign Investment. Laura Alfaro, January 6, 2017, Paper, “Falling transportation costs and rapid technological progress in recent decades have precipitated an explosion of cross-border flows in goods, services, investments, and ideas led by multinational firms. Extensive research has sought to understand the geographic patterns of foreign direct investment (FDI). This chapter reviews existing theories and evidence specifically addressing questions including: How is FDI distributed across space? Why does the law of gravity apply? How do the costs of transporting goods, tasks, and technologies influence firms’ decisions to separate tasks geographically and locate relative to one another? We discuss a variety of theoretical mechanisms through which transport cost and other geographic friction influence FDI and present the key empirical studies and findings.Link

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International Trade, Multinational Activity, and Corporate Finance

International Trade, Multinational Activity, and Corporate Finance. C. Fritz Foley, October 2014, Paper, “Recent research brings unique insights from corporate finance to the study of international trade and investment. Insights about differences in the development of financial institutions across countries, the role of financial constraints, and the use of internal capital markets are proving to be central in understanding international economics. The ability to access financial capital to pay fixed and variable costs affects the choices firms make regarding trade on the intensive and extensive margins, and, as a consequence, influence aggregate trade patterns…” Link

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Spanning the Institutional Abyss: The Intergovernmental Network and the Governance of Foreign Direct Investment

Spanning the Institutional Abyss: The Intergovernmental Network and the Governance of Foreign Direct Investment. Juan Alcacer, January 2013, Paper. “Global economic transactions such as foreign direct investment must extend over an institutional abyss between the jurisdiction, and therefore protection, of the states involved. Intergovernmental organizations (IGOs), whose members are states, represent an important attempt to span this abyss. IGOs are mandated variously to smooth economic transactions, facilitate global cooperation, and…” May require purchase or user account. Link Verified October 12, 2014

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