Evidence on corruption as an incentive for foreign direct investment

This paper assesses the relationship between corruption and inward foreign direct investment (FDI). Previous research has presumed that corruption directly enters the cost function of multinationals, suggesting a negative relationship between corruption and FDI. For a sample of 73 developed and less developed countries and the time period 1995–1999, we find a clear positive relationship between corruption and FDI. Corruption is thus a stimulus for FDI.     

FDI对国际贸易的影响：来自中国的证据

本文利用2003~2006年的面板数据检验了我国外向与内向FDI存量与进出口贸易之间的关系。通过实证分析发现:我国的外向FDI与进出口均存在互补关系,因此外向FDI具有贸易创造效应,其中又以出口创造效应为甚,从而使我国的外向FDI具有"净出口"效应;而内向FDI与进出口的关系都不显著。     

Estimating gravity equations: to log or not to log?

In this study we compare the traditional OLS approach applied to the log-linear form of the gravity model with the Poisson Quasi Maximum Likelihood (PQML) estimation procedure applied to the non-linear multiplicative specification of the gravity model. We use the trade flows for all products, for all manufacturing products as well as for manufacturing products broken down by three-digit ISIC Rev.2 categories. We base our conclusions on the gravity model of Bergstrand (Rev Econ Stat 71(1):143--153, 1989) for disaggregate trade flows that allows us to investigate differences in factor-proportions and home-market effects at the industry level. In addition, we compare the effects of other explanatory variables such as exporter and importer total income, distance, preferential trade agreements, common border, historical ties, and common language on the volume of trade. Our main conclusion is that both estimation results as well as results of the regression mis-specification tests provide supporting evidence for the PQML estimation approach over the OLS estimation method. The paper has benefited from comments by an anonymous referee and by the participants at the following conferences: the 4th Nordic Econometrics Meeting, Tartu, Estonia, the 8th Annual Conference of the European Trade Study Group (ETSG), Vienna, Austria, the 21th Annual Congress of the European Economic Association (EEA), Vienna, Austria, the XIth Spring Meeting of Young Economists (SMYE), Sevilla, Spain, and the 5th Annual Conference of the European Economics and Finance Society (EEFS), Heraklion, Greece.     

How does the internet affect migration decisions?

This article provides new evidence on the impact of the internet on migration decisions. I find that an increase in internet adoption among migrant-sending countries reduces the stock of migrants from these locations. The results are robust to a number of specifications, including an instrumental variable approach that addresses the endogeneity of internet adoption. The findings suggest that the internet may weaken the importance of push factors in the decision to migrate, and that these effects outweigh declines in mobility costs.     

A gravity criterium for discriminating traditional protection measures

The case of Spain in the first globalization illustrates how the gravity equation, as a tool from which to derive a comprehensive measure of trade costs, can be used to test the soundness of alternative direct measures of specific costs.     

Enlarging the EMU to the east: what effects on trade?

The purpose of this article is to assess the implications of the Economic and Monetary Union (EMU) accession of eight Central and Eastern European Countries (CEECs) on their share of EMU-12 imports. Overcoming biases related to endogeneity, omitted variables and sample selection, our results indicate that the common currency has boosted intra-EMU imports by 7%. Under the assumption that the same relationship between the explanatory variables and imports will hold for EMU-CEEC trade, we intend to predict the future impact of the Euro. Our findings suggest that except for the least integrated countries, Poland, Latvia and Lithuania, all CEECs can expect increases in the EMU-12 import share.

The European Community Household Panel: A review

The European Community Household Panel (ECHP) is a standardized multi-purpose annual longitudinal survey carried out at the level of the European Union. It is centrally designed and coordinated by the Statistical Office of the European Communities (Eurostat), and covers demographics, labor force behavior, income, health, education and training, housing, migration, etc. After reviewing the organization of the survey, this paper discusses some of the issues that an applied economist potentially interested in the ECHP may face when trying to deal with these data. In particular, the paper focuses on survey attrition and nonresponse, the weighting procedures with which Eurostat tries to compensate for differential nonresponse and attrition rates, and the imputation methods adopted by Eurostat in order to deal with item nonresponse. First version received: July 2000/Final version received: October 2000     

Serial and spatial error correlation

This paper demonstrates that jointly modeling serial and spatial error correlation results in a trade-off between the serial and spatial autocorrelation coefficients. Ignoring this trade-off causes inefficiency and may lead to nonstationarity.     

A panel cointegration approach to the investment-saving correlation

This paper augments the empirical literature concerning the Feldstein-Horioka puzzle using non-stationary panel data. Recently developed tests for panel cointegration and panel unit root tests are employed. We find substantial evidence to support the hypothesis of no cointegration in this panel, implying a high degree of international capital mobility. Our results suggest that tests for cointegration in panel data provides a better methodological focus than the magnitude of saving-retention coefficients. First version received: August 1999/Final version accepted: December 2000     

Expanding international trade beyond the RTA border: The case of ASEAN's economic diplomacy

We examine the roles of regional trade agreements (RTAs) not only in regionalization processes but also in globalization of trade. Results from various specifications of the gravity equation model confirm that a country can noticeably increase directional trade through diplomatic relations as well as through membership.     

外商直接投资对东部六省市城镇居民收入分配差异的短期影响分析——基于Paneldata固定效应模型

本文研究了外商直接投资在短期内对东部地区6省市城镇居民收入的影响。通过东部6省市2003～2007年的面板数据的实证检验,表明外商直接投资是导致短期东部地区内部6省市城镇居民收入差距的原因之一。     

Can country trade flows benefit from improved corporate social responsibility ratings?

We set out in this study to examine the effects of country ‘corporate social responsibility’ (CSR) ratings on the international trade flows of 28 countries. Drawing on categorization theory, we examine whether country CSR engagement is a categorizing factor capable of influencing the overall process of categorization. Based upon a two-stage approach, comprising of gravity and panel Tobit models, we find that a country's CSR rating has significantly positive effects on the country's international trade flows. When the CSR rating of a country is higher than that of another rival trading country, this will have significantly positive effects on the bilateral trade flows between the two countries.