The Determinants of Intra-European Foreign Direct Investment Flows: Market Integration and Policy Issues

SUMMARY

This paper reviews the literature on the determinants of foreign direct investment (FDI) and the European Community (EC), especially the few studies concerned with intra-European FDI. It applies international business theory to investigate the determinants of FDI flows within the EC over the period 1984–89. The key results are that the models found contrast with the standard US-EC literature, and also differ within the EC. Real variables assume the greatest importance, although financial variables do appear significant. The pattern of findings suggests that the growth of intra-EC FDI is linked to the adoption of a pan-European FDI strategy by EC firms, largely prompted by EC market integration.     

The effectiveness of price-stabilizing share buybacks: Evidence from listed firms in Vietnam

The majority of share buybacks in Vietnam involve the sole stated purpose of price stabilization. Using a sample of repurchases announced in 2008–2016 and control firms based on propensity score matching, we find the Vietnamese repurchases to be effective in stabilizing prices and enhancing liquidity. Utilizing the special disclosure features in Vietnam that allow clearly-defined sub-windows of pre-trading, trading, and post-trading, we further examine the different mechanisms of market reactions and actual firm buyback transactions in the buyback process. We document significantly higher abnormal returns over the pre-trading window driven by market reactions, and improved liquidity and reduced volatility over the firm’s actual transaction window for the buyback firms. We also report a significant moderating effect of target shares announced and actual shares repurchased depending on the sub-window under examination. We do not find any evidence of effectiveness in the post-trading window or over a longer-term beyond the buyback period.     

国内投资与外商直接投资就业效应的差异性研究——基于江苏省的数据分析

以江苏省1990～2007年的相关数据为研究对象,运用多元回归分析的方法,对国内投资、外商直接投资以及经济增长带来的就业效应进行估计,并对实证研究结果进行分析,发现国内投资与外商直接投资的就业效应有着明显的差异性,根据这一结论进一步探讨江苏省合理安排投资,促进就业的相应对策。     

Political culture and foreign direct investment: The case of Italy

Does the political culture of an area have any impact on the foreign direct investment (FDI) decisions of multinational corporations (MNCs)? This question is difficult to address empirically, as locations differ in many dimensions. We therefore address this question by examining MNC investment location decisions with regard to different regions within a single country. The country we examine is Italy, which exhibits one of the highest levels of variation with regard to the political culture of its geographical regions. We find that political culture as represented by the pattern of support for political parties at different points on the political spectrum has a significant impact on the MNC investment location decision. Thus, in choosing between locations on a short list, where economic and financial location factors are roughly similar, political culture can have a determining influence. In the case of Italy, a Center-right orientation is conducive to MNC FDI, while a Center-left orientation is not. A Far-left orientation is found to have a very negative effect on FDI.     

对华直接投资跨国公司与中国关系的博弈分析

随着经济全球化的发展,世界各地对跨国公司的发展越来越重视。如今,跨国公司对华直接投资有力地促进了中国经济的发展,但同时也产生了诸多不利影响。本文通过分析跨国公司与我国之间的关系,认为跨国公司与我国政府作为理性的行为主体,其行为都是为了实现自身的利益最大化,然而,由于政府与跨国公司之间的博弈,使本来可以双赢的结果变得不尽如人意。本文试图通过建立一个模型来解决这一问题,从而为我国政府做出相关决策提供理论支持。     

Foreign direct investment and productivity spillovers in the Chinese manufacturing sector

In this paper a simple simultaneous model is constructed to examine whether there are productivity spillovers from both the presence of foreign direct investment (FDI) and competition between local and foreign firms. The model is tested on the data from China’s latest industrial census in 1995. The results indicate that the extent to which spillovers occur varies with different types of ownership of local firms and of FDI. While collective- and private-owned enterprises benefit from demonstration and contagion effects from foreign presence, productivity gains of state-owned enterprises largely come from competition with foreign firms. Productivities of local and foreign firms are jointly determined. Evidence also suggests that market-oriented FDI tends to generate spillovers mainly via competition with local firms.     

分析师盈利预测压力与企业投资效率——来自中国A股市场的证据

证券分析师盈利预测是市场预期的一个典型替代变量,其超出企业内部经营预期的部分会对企业产生压力,从而干扰经理人的决策和行为。通过构建盈利预测压力测算模型研究证券分析师盈利预测压力对企业投资决策的影响,并进一步考察分析师跟踪和企业政治联系对二者关系的调节作用。研究发现,分析师盈利预测压力与投资不足正相关,与过度投资不相关。这表明企业在面临分析师盈利预测压力时更倾向于减少投资,而不是冒险将资金用于高风险项目。进一步研究发现,分析师跟踪以及企业政治关联会负向调节盈利预测压力对投资不足行为的影响,外部监督的增强以及资源获取渠道的拓宽能够纠正企业在盈利预测压力下的非效率投资行为。     

管理者过度自信与权益资本成本——来自我国证券市场的经验证据

以深圳证券市场A股上市公司为样本,研究了管理者过度自信与权益资本成本之间的关系。研究发现,高管层过度自信的心理特征是通过影响企业的投资行为造成过度投资,进而影响到投资与融资现金流之间的敏感性,导致激进融资,使企业权益资本成本增加。     

Trade and Income Growth in Vietnam: Estimates from a New Social Accounting Matrix

Economic reforms and greater outward orientation are giving rise to extensive structural change in the Vietnamese economy. Because of the leverage that global markets can exert on an emerging economy, such adjustments will be particularly significant in the composition of domestic supply and demand. As domestic protection levels are reduced and external market access increases, trade growth and shifting trade patterns will have pervasive effects on income distribution in Vietnam. In this paper, we use a newly estimated Vietnam social accounting matrix to elucidate the links between trade and income in the country. With matrix decomposition methods, we show how the Vietnamese economy propagates the direct effects of external demand across the spectrum of domestic activities, factors, and households. This detailed analysis provides a blueprint for policies to improve economic participation of activities and households with relatively weak linkages to the rest of the economy.     

外商直接投资与经济增长:基于动态VAR模型的分析

外商直接投资与经济增长的关系一直是国内外学者研究的热点。本文运用向量自回归(VAR)模型、脉冲响应函数、方差分解等计量经济学方法,基于2002年至2011年的季度数据,对外商直接投资与经济增长的关系进行了实证研究。结果表明:从长期来看,外商直接投资的增加有助于促进经济增长,但是短期这种促进作用并不明显;经济增长有助于外商直接投资的增加。     

我国利用外商直接投资中的风险与防范

自从改革开放以来,利用外资是我国经济发展的主要动力之一。外商直接投资的比重,尤其是进入90年代以后,呈现逐年上升趋势。随着我国的外商直接投资的增多,各种利弊也逐渐的显示出来,本文将从风险的概念入手,进而引出外商直接投资的风险的定义。并指出外商直接投资的特点,以及其产生风险的根源,进而引申到我国的经济现实,提出对我国的外商直接投资风险的分析。     

Conflict and Commensuration: Contested Market Making in India's Private Real Estate Development Sector

Newly constructed high‐rise housing and malls, soaring land prices and violent confrontations over land testify to the massive urban transformations underway in India today. Having secured an expanded role in urban development from the state, the private sector helps to shape urban restructuring; however, few scholars have studied private real estate development in India or revealed the factions that underlie an analytically unitary ‘private sector’. This article sheds light on private sector real estate industry members' efforts to develop an internationally familiar real estate market in India. Foreign investors and consultants have been collaborating with Indian real estate developers, who are now active intermediaries in the flow of capital into India. Drawing on participant observation and data from interviews, this article finds, however, that foreign financiers and Indian developers struggle to form partnerships on account of differences on issues like land valuation. The outcome of such conflicts will define the contours of Indian real estate development and its integration with international markets in the future.     

Financing constraints and ODI margins: Evidence from China

Using a novel firm-level dataset on China, this paper examines the effects of financing constraints on enterprises’ outward direct investment (ODI) from the perspective of binary margins of ODI. The main findings of the paper are threefold. First, financing constraints show a negative effect on enterprises’ ODI for both the intensive and extensive margins, with a more significant effect on the extensive margin. Second, the negative effect is mostly significant in the energy industry, while it is not significant in non-energy industries. Finally, financing constraints show a negative effect on state-owned enterprises for both margins, while the effect is less significant for non-state-owned enterprises. The findings in the paper have policy implications for understanding and promoting ODI in emerging economies.     

FDI forward spillover effects in emerging markets: A comparative meta-analysis of China and Eastern Europe

Using two unique datasets of 530 forward estimates from 19 studies on China and 942 forward estimates from 28 studies on Eastern European transition economies, this study quantitatively analyzes foreign direct investment forward spillover effects, accounting for various biases and firm attributes in existing empirical results using a meta-regression analysis. We find that aggregation bias, misspecification bias, endogeneity bias (including simultaneity bias and omitted-variable bias), and publication bias, as well as firm attributes, contribute to the heterogeneity in forward spillover estimates; and that the preferred forward spillover effects are positive but nonsignificant. Interestingly, the preferred forward spillover effect is likely to be much larger in Eastern European transition economies than in China.     

投资效率、企业产权与高管变更——基于中国上市公司的经验证据

从投资效率和企业产权的角度考察了高管变更的影响问题及相应的经济后果。研究结果表明,总体来说,高管因为投资效率低下而被更换的证据较微弱;高管被更换后,投资效率并没有得到明显的改善。区分企业产权后,我们发现,相对于国有公司来说,民营公司的"高管变更-投资效率"敏感性更大,但高管变更之后投资效率并没有得到显著改善;然而,相对于地方政府控制的国有公司来说,中央政府控制的国有公司在高管变更之后投资效率得到了显著改善。     

Social Capital,Investment and Economic Growth: Some Evidence for Spanish Provinces

Abstract

This article analyses the impact of social capital on regional economic growth in Spain during the 1985–2005 period. The literature in this context is virtually nonexistent and, in addition, whereas most studies, regardless of their context, have used survey data in order to measure social capital, we use a measure whose construction is based on similar criteria to other measures of capital stock. Compared with more standard measures of social capital and trust, our measure is available with a high level of disaggregation, and with annual frequency for a long time period. Following a panel data approach, our findings indicate that social capital has a positive impact on GDP per capita growth in the context of Spanish provinces, implying that ‘social features’ are important for explaining the differences in wealth that one might find across Spanish provinces. We also explore the transmission mechanisms from social capital to growth, finding a highly positive relation between social capital and private physical investment.     

辽宁省对外直接投资的发展现状及特点研究

本文从辽宁省对外直接投资历史角度出发,研究了辽宁省对外直接投资的发展趋势,概括了辽宁省对外直接投资的特点,并针对这一些特点提出了相应的对策建议。辽宁省政府应引导鼓励确立多元化的境外投资主体;筛选国内、国外项目,积极推介、组织有实力、有条件的国有企业到境外考察;搞好跨国经营项目的对接工作;建立良好的服务机制;优化投资管理,提高人员素质。     

Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms

This study examines the association between market risk disclosures (MRDs) and the investment efficiency of financial firms from six emerging markets in the Gulf Cooperation Council (GCC) region. Based on a sample of 553 firm‐year observations over the 2007–2011 period, we find that MRDs are significantly and negatively associated with both under‐investment and over‐investment and that this association is more pronounced for larger firms. We also find that the association between MRDs and under‐investment is moderated during periods of economic distress such as the Global Financial Crisis of 2008 and that the association between MRDs and over‐investment is magnified during periods of reduced financial distress. Our results are consistent with the idea that MRDs reduce information asymmetry, which ultimately improves investment efficiency. We contribute to the literature in an emerging market context by providing empirical evidence on the association between MRDs and investment efficiency across six emerging GCC capital markets. This study also fills a gap in the literature by providing evidence on the factors affecting the investment efficiency of financial firms.     

Impact of Environmental Performance on Firm Value for Sustainable Investment: Evidence from Large US Firms

This research examines the impact of environmental performance on firm value, applying the event study methodology to Newsweek’s ‘Green Rankings’ announcement of 2012 for large US firms. Specifically, it analyzes the impact of the absolute green score and green rank of firms on their performance in the stock market. We found that investors perceive the announcement as positive news, leading to significant positive standardized cumulative abnormal returns (SCARs). After controlling for industry‐ and firm‐specific effects, we observed that firms with repeated green rankings for enhancing environmental performance showed significantly higher SCARs than those with either reduced or unchanged environmental performance. In addition, the environmental impact score measuring environmental damage from a firm's operational activities was found to be the most influential factor in improving the firm's value. Our findings are beneficial to managers in allocating resources to different types of environmental initiative, and provide valuable insight for sustainable environmental investment. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Foreign direct investment and its determinants: A regional panel causality analysis

Moving beyond traditional one- or possibly two-way causality involving foreign direct investment (FDI), a systematic approach is implemented for delineating both short- and long-run flows of causality involving FDI and a comprehensive set of FDI's possible determinants. Granger causality procedures incorporating error correction terms are implemented, using provincial panel data from China. In both the short and long run, growth in GDP directly influences FDI, while growth in local infrastructure and local investment provide indirect but not direct influence.