The complementarity between U.S. foreign direct investment stock and trade

Within a gravity model framework, this paper will establish that trade and foreign direct investment (FDI) are complementary, using trade and FDI stock data on a bilateral basis between the U.S. and 51 other countries over the period 1982 to 1994. U.S. outward FDI is found to have a larger predicted impact on U.S. exports than does inward FDI. On the other hand, inward FDI is found to have a larger predicted impact on U.S. imports than does U.S. outward FDI. These results are directly linked to patterns of intrafirm trade within the multinational enterprise (MNE), a result consistent with the transactions cost theory of MNEs. In addition, a sectoral analysis indicates that U.S. outward FDI in manufacturing has a large predicted impact on both exports and imports, whereas U.S. outward FDI in services has a large predicted impact on U.S. exports but little or no predicted impact on imports. Detailed comments and suggestions were provided by Joe Daniels, Albert Berry, and seminar participants at the University of Toronto, York University, Industry Canada, and the 1999 annual Canadian Economics Association meeting. Research assistance was provided by George Georgopoulos and Anthony Yao. The authors are responsible for any remaining errors.     

Intra-industry foreign direct investment: Its rationale and trade effects

Zusammenfassung Intra-industrielle Direktinvestitionen im Ausland: Ihre Gründe und Auswirkungen auf den AuΒenhandel. — Der Aufsatz zeigt, daΒ intra-industrielle Direktinvestitionen oder die daraus finanzierte Produktion im Ausland Formen des internationalen wirtschaftlichen Engagements sind, die ihre Begründung sowohl im intra-industriellen Handel als auch in der inter-industriellen Produktion finden. Dies wird an Hand einer Taxonomie aufgezeigt. Es wird argumentiert, daΒ intra-industrielle Direktinvestitionen im Ausland eine natürliche Folge der gleichen Faktoren sind, die zu intra-industriellem Handel führen, wobei unternehmensspezifische Vorteile wichtiger sind als die in einem Land begründeten Vorteile. Intra-industrielle Auslandsinvestitionen bedeuten auΒerdem, daΒ internationale Transaktionen am besten in hierarchischer Form und nicht über (Kassa-)M?rkte durchgeführt werden, und zwar aus Gründen, die den g?ngigen Theorien über multinationale Operationen entnommen werden k?nnen. Ganz sicher folgt sowohl aus der Theorie als auch aus den verfügbaren Daten, daΒ die intra-industrielle Produktion wahrscheinlich an Bedeutung gewinnen wird, vor allem dann, wenn keine Eingriffe durch die Regierungen erfolgen.

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Résumé Investissement étranger direct intra-industriel: sa base raisonnée et ses effets commerciaux. — L’article démontre que l’investissement étranger direct intra-industriel (IE-DII) ou la production correspondante comme forme d’engagement international économique est soumise à des motifs rationnels qui basent sur le commerce intra-industriel (Cll) et la production inter-industrielle. Les auteurs arguent que l’IEDII est une conséquence naturelle des facteurs économiques qui ménent au CII et qui même sont déterminés par la nature de ?l’industrie? dans laquelle le CH se passe. En plus, cependant, l’IEDII implique que les transactions internationales sont conduites le mieux par des hiérarchies et non par des marchés à cause des raisons qui peuvent être déduites par des théories recues des opérations internationales. Il apparait clairement, de la théorie aussi bien que des données disponibles que probablement la production intra-industrielle gagnera en importance, particuliérement si elle restera libre de l’intervention gouvernementale.

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Resumen Inversion extranjera directa en la industria: razón de su impacto sobre el comercio. — El artfculo muestra como la inversión extranjera directa intra-industrial o la producción como forma de participación económica internacional tiene una razón de ser basada en el comercio y en la producción intra-industrial. Se propone que la inversión extranjera directa es una conscuencia natural de los factures económicos que llevan el comercio intra-industrial, los que a su vez están determinados por la naturaleza de la industria en el que el comercio tiene lugar. La inversion extranjera directa implica adicionalmente sin embargo que las transacciones internacionales se ejecutan mejor a travès de jerarqufas que a travès de mercados por razones que pueden ser derivadas de conocidas teorias sobre operaciones multinacionales. Es evidente, por medio de la teoria y de las estadisticas disponibles, que se puede esperar un crecimiento de la producci?n intra-industrial, especialmente si se le libèra de interferencia gubernamental.

     

Japanese foreign direct investment and regional trade

We examine the relationship between Japanese FDI outflows, domestic and foreign fixed investment, and the exchange rate. The results indicate that aggregate FDI outflows have been driven by investment in Japan and the exchange rate, while the geographic distribution of such investment has been influenced by foreign economic conditions. We also find that FDI outflows have a temporary impact on exports but a permanent effect on imports. We find no evidence that behavior with respect to East Asia differs from that with respect to North America or Europe.     

Local labor market conditions and foreign direct investment flows in the U.S.

This study evaluates the impact of industry and state-specific economic conditions on inward Foreign Direct Investment (FDI) in several states in the U.S. FDI inflows in the U.S. are attracted by high industry and state specific labor productivity, and also by high state spending on education. Multinational companies seem to highly value a productive and educated labor force.     

Vertical foreign direct investment: Evidence from Japanese and U.S. multinational enterprises

Foreign direct investment (FDI) in developing countries has increased since the 1990s, but there is mixed evidence of vertical FDI associated with factor-seeking motives. This paper estimates the vertical motive of offshore production by multinational enterprises (MNEs) by exploiting past schooling characteristics as instruments for skilled-labor abundance in a host country. Using panel data on Japanese and U.S. MNEs in the 1990s, I find that skilled-labor abundance has a significantly negative impact on sales of manufacturing foreign affiliate only for Japanese MNEs. The results suggest that vertical FDI activity was more prevalent in Japanese MNEs than U.S. MNEs. A plausible explanation is that Japanese MNEs might be more vertically integrated with their offshore production than U.S. MNEs. A difference in foreign outsourcing activities could generate the observed deviation between Japanese and U.S. MNEs.     

Vertical intra-industry trade and foreign direct investment in East Asia

As economic integration in East Asia progresses, trade patterns within the region are displaying an ever-greater complexity: Though inter-industry trade still accounts for the majority, its share in overall trade is declining. Instead, intra-industry trade (IIT), which can be further divided into horizontal IIT (HIIT) and vertical IIT (VIIT), is growing in importance.In this paper, we set out to measure and examine vertical intra-industry trade patterns in the East Asian region and compare these with the results of previous studies focusing on the EU, to which such analyses so far have been confined. Based on the supposition that VIIT is closely related to offshore production by multinational enterprises, we then develop a model to capture the main determinants of VIIT that explicitly includes the role of FDI. The model is tested empirically using data from the electrical machinery industry. The findings support our hypothesis, showing that FDI plays a significant role in the rapid increase in VIIT in East Asia seen in recent years. J. Japanese Int. Economies 17 (4) (2003) 468–506.     

The impact of exchange rate risk on the foreign direct investment of U.S. multinational manufacturing companies

This paper extends the examination of the effects of exchange rate risk on the foreign direct investment decision of U.S. multinationals in manufacturing. It does so by explicitly developing a model which incorporates exchange rate risk into the objective function of the firm and tests the model on cross-sectional data over the years 1974 to 1977 for investment in both developed and less developed countries. These are the only years for which data on all crucial variables are available. In all cases the risk aversity hypothesis was substantiated and the same model was appropriate for both developed and less developed countries.     

论直接投资与国际贸易关系的互补性

<正> 一、环境变化与跨国公司经营战略转变 直接投资与国际贸易的互补性源于直接投资具有的能够诱发母国和东道国进出口的效应。诱发效果的产生与跨国公司国外子公司的供销行为密不可分。以出口为例,当国外生产能够诱发母国     

改革开放后中国对外贸易与外来直接投资发展的同步性

改革开放以来中国的对外贸易与利用外来直接投资都取得了突飞猛进的增长。这种增长不仅表现为总量扩张上的同步性,而且呈现出结构变动上的高度相关性。在对中国对外经贸领域政策与体制变迁过程回顾基础上,本文得出的基本分析结论是,改革开放后中国对外贸易与外来直接投资间互补而非替代性关系的形成有着深刻的政策背景,那就是派生于中国对外开放战略的贸易体制改革与利用外资政策间相辅相成的互动关系。     

Foreign direct investment and factor prices in U.S. manufacturing

Foreign Direct Investment and Factor Prices in U.S. Manufacturing. —We investigate whether inward foreign direct investment (FDI) can explain part of the increase in relative wages of skilled workers in U.S. manufacturing over the period 1977–1994 by studying the sector bias of the effects of FDI on sector prices and technology. We follow the two-stage mandated-wage approach based on the StolperSamuelson theorem. We find that inward FDI affects the sum of sector prices and productivity depending on the absorptive capacity available in the sector. We also find some evidence that inward FDI has induced a sector bias towards using skilled workers over the period 1977–1994.     

The relative price of tradables and nontradables and the U.S. trade balance

The real exchange rate is defined as the relative price of nontradables and tradables. An index of the relative price is constructed for the U.S. and used to explain net exports. The index appears to perform better in explaining net exports than a comparable purchasing power parity real exchange rate. The relative price of nontradables, in turn, is shown to be cointegrated with a set of variables that drive the demand for and supply of nontradables. These variables capture long-run structural and demographic changes of the U.S. economy, such as the increased demand for medical services.     

广东省外商直接投资、环境规制与技术创新

运用协整等计量分析方法实证研究广东省技术创新产出及其影响因素和负外部性的关系。实证结果表明,科技使用额对广东省技术创新产出能力的提升具有推动作用;实际外商直接投资水平和环境规制能力对广东省技术创新产出能力的提升具有抑制作用。同时,科技使用额、实际外商直接投资水平、环境规制能力和广东省技术创新产出能力之间不存在显著的格兰杰因果关系;广东省实际外商直接投资水平的变化会引起广东省环境规制能力变化。     

The trade effects of the U. S. generalized system of preferences

Conclusion Subsequent rounds of multilateral tariff reductions and changes in the GSP and other trade arrangements supersede the analysis presented here, but this study still provides some guidance to future analysis of tariff concessions. The review of the literature suggests a need for greater precision in methods and data. The new technique employed here would appear to be appropriate for future analyses of multilateral trade liberalization and of proliferating free trade areas. Our results indicate that extremely optimistic and pessimistic estimates of GSP trade effects should be regarded with skepticism. The GSP has probably had a modest positive impact on LDC exports to the United States.     

The experience effect and foreign direct investment

Zusammenfassung Erfahrungseffekt und ausl?ndische Direktinvestitionen. - In diesem Aufsatz wird der Einflu? der Erfahrung auf die ausl?ndischen Direktinvestitionen U.S.-amerikanischer Firmen untersucht. Die Ergebnisse zeigen, da? allgemeine Erfahrungen aus internationalen Gesch?ften und l?nderspezifische Erfahrungen, die mit Hilfe von zwei verschiedenen Indikatoren operationalisiert werden, einen positiven Einflu? auf die ausl?ndischen Direktinvestitionen haben und da? dieser Einflu? bei Firmen mit ausgedehnten internationalen Aktivit?ten besonders bedeutsam ist. Um die Wirkung anderer Faktoren auf die ausl?ndischen Direktinvestitionen von dem Einflu? der Erfahrung unterscheiden zu k?nnen, werden einige l?nder- und firmenspezifische Faktoren in das Modell einbezogen.

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Résumé L’effet de l’expérience et l’investissement étranger direct. — Cette étude examine la répercussion de l’effet de l’expérience sur l’investissement étranger direct des entreprises américaines. Les résultats démontrent que l’expérience générale des opérations internationales et l’expérience dans un pays spécifique, représentée par deux indicateurs différents, ont une répercussion positive sur l’investissement étranger direct et que cette répercussion est plus significative pour les entreprises avec des opérations internationales extensives. Dans le modèle on a aussi inclu quelques facteurs caractérisant le pays dans lequel on fait l’investissement et des facteurs qui caractérisent les entreprises afin d’isoler mieux l’expérience comme facteur de l’investissement étranger direct.

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Resumen El efecto de la experiencia y la inversión extranjera directa. — En este trabajo se investiga el impacto del efecto experiencia sobre la inversión extranjera directa de empresas de los EE UU. Los resultados muestran que tanto la experiencia general en operaciones internationales como la experiencia especifica en paises determinados, operacionalizadas cada una de manera diferente, tienen un impacto positivo sobre la inversión extranjera directa, y que este impacto es más significante para empresas con amplias operaciones internacionales. Con el fin de distinguir el impacto de la experiencia sobre la inversión extranjera directa del de otros factores, también se incluyen en el modelo algunos factores relacionados con el país y factores relacionados con la empresa.

     

对外直接投次与出口贸易关系研究--基于中国数据的协整分析

自多国家"走出去"战略推出以来,中国企业的对外直接投资历(即FDI)迅速增加.     

加快中国企业对外直接投资

近年来,我国政府一直鼓励本土企业对外直接投资。继国家外汇管理局发布了《关于调整部分境外投资外汇管理政策的通知》后,近期国家税务总局发布了《关于出口货物退(免)税若干问题的通知》,规定对企业以实物投资出境的设备及零部件实行出口退(免)税政策。这实际上将企业对外实物     

The Japanese–U.S. trade balance and the yen: Evidence from industry data

While it is often assumed that a country's trade balance will improve in the long-run if its currency is allowed to depreciate, this is not necessarily the case for specific goods. In the short run, the opposite might even take place, as fixed quantities and rising import prices cause the trade balance to deteriorate. In this paper, we apply cointegration methodology to assess the short- and long-run impact of fluctuations in the yen–dollar real exchange rate on Japan's trade balance with the U.S. for 117 industries. We find that depreciation causes the trade balance to improve in the long-run for about one-third of Japanese industries. Most short-run effects are in the same direction, indicating a quick improvement in these industries’ trade balance, rather than a period of deterioration such as a “J-curve.”     

The effects of foreign aid,foreign direct investment and domestic investment on economic growth in African countries: Nonlinearities and complementarities

This paper examines the relationship between foreign aid (AID), foreign direct investment (FDI) and domestic investment (DI) and its effects on economic growth in 41 African countries. Annual panel data from 1990 to 2016 are examined using fixed‐effects (FE) and system‐GMM estimators. We test the existence of nonlinearities and complementarities in the relationship between AID–FDI, AID–DI, FDI–DI, and AID–FDI–DI. Empirical results confirm the existence of a nonlinear relationship between AID, FDI, DI, and economic growth. Besides, the results show that AID and FDI have a significant positive complementing effect on economic growth. It is shown also that FDI complements DI, while the coupled effect of AID and DI remains weak in catalyzing growth. Moreover, the results indicate that the complementarity between AID–FDI–DI positively influence economic growth, revealing that AID and FDI work as a complement factor to DI and enhance its effectiveness in promoting economic growth. These insights have important policy implications. Policy‐makers in African countries are well advised to implement concrete policy measures suitable for building on the growth momentum created by foreign capital inflows, like FDI, AID as well as remittance.     

外商对华投资新动向及汕头引进外商直接投资政策建议

<正> 中国加入WTO意味着第二轮更加彻底的全面大开放,跨国公司在中国投资战略由此进行了调整,提升了中国在全球布局中的战略地位,其对华直接投资出现新动向。作为中国最早对外开放的经济特区之一的汕头市应如何改善投资环境及调整引资策略,吸引更多的外商直接投资,更有效地利用外资以促进汕头经济的发展是一个值得深入探讨的问题。 一、外商在华投资新动向 1.投资规模继续扩大,新一轮投资热潮方兴未艾 2002年是我国加入WTO后的第一年,受加入世贸效应的带动,当年我国实