Estimation of foreign MNEs spillovers in Spain

Using Spanish firm-level data, we estimate productivity effects of spillovers from foreign multinationals to domestic firms in both manufacturing and service sectors. We find evidence of a positive productivity effect from multinationals on domestic firms operating in the same industry. Analyzing inter-industry linkages, we find evidence consistent with positive productivity spillovers from forward linkages (i.e. from suppliers to buyers) and negative productivity spillovers from backward linkages (i.e. from buyers to suppliers). Our main results hold when analyzing differences between multinational and domestic firms, and for periods of economic growth and recession, although some differences arise. Interestingly, we find evidence supporting a positive role of spillovers during the last recession period.     

It matters where you go: Outward foreign direct investment and multinational employment growth at home

How does outward foreign direct investment (FDI) affect employment growth of the multinational corporations (MNCs) in the home country? Does the impact of outward investment differ by the level of development of the destination country of the FDI? Using a difference-in-difference approach, we assess the impact of starting to invest in less-advanced countries compared with investing in more-advanced countries. To obtain suitable control groups in each case, we use the propensity score method to select national firms that ex post did not take the investment decisions that we study even though ex ante they would have been equally likely to. We find that moving to less-advanced countries decreases a company's employment growth rate especially in the short run. On the other hand, moving to more-advanced countries does not consistently affect employment growth in any significant way. Including investment decisions of established multinationals in the estimation somewhat weakens but does not overturn this conclusion.     

National levels of corruption and foreign direct investment

We model the relationship between bilateral foreign direct investment (FDI) and the level of corruption in multinational firms’ (MCNs’) home and host countries. We construct and test a model of bilateral FDI between countries that differ in their levels of corruption. FDI is affected negatively both by the level of corruption in the host country and by differences in home- and host-country corruption. Our model emphasizes that MNCs develop skills for dealing with home-country corruption, and these skills become a competitive advantage in similarly corrupt host countries. We test the model using data on bilateral FDI stocks among a large number of home and host countries, using a variety of specifications and estimation strategies to provide robustness. Our results show that the effects of host-country corruption and of differences in corruption levels between home and host countries are statistically and economically significant.     

Transnational corporations' strategies and foreign trade patterns in MERCOSUR countries in the 1990s

Market-seeking strategies predominate in the recent FDI boomin MERCOSUR countries. In the trade performance of transnationalcorporation affiliates a sort of ‘asymmetric integration’is clearly visible: they produce for the internal market and,to some extent, for the regional one, while import inputs andfinal goods from developed countries (and a significant partof these trade flows is intra-firm). Thus, even if affiliatesobtained productivity gains in the 1990s, they have not yetbeen reflected in a significant increase in exports, and evenless in extra-regional exports. Hence, the foreign direct investmentboom seemingly has not yet contributed to a better insertionof MERCOSUR countries into the world economy.     

Sectoral determinants of foreign affiliate sales employing European data

We test theories on sectoral determinants of foreign affiliate sales employing European foreign affiliate sales statistics (FATS). On the one hand, we test hypotheses that foreign affiliate sales are less likely in sectors with complex tasks and more likely in sectors where communication with customers is important. On the other hand, we test the hypothesis that the force of gravity is stronger in more complex sectors. Employing Poisson and negative binomial estimators, we find support for the first hypotheses and contradict the second hypothesis. We show that the interaction effect between distance and complexity changes sign from negative to positive when complexity is included as a separate regressor. We propose an explanation to reconcile our findings with the basic assertion in the second hypothesis that the force of gravity is stronger in more complex sectors, based on a composition effect between horizontal and vertical affiliate sales.     

Ownership advantages,home production,foreign production and exports of direct investing firms—Some evidence from austrian firms

This paper formulates a simple model of a monopolistic, horizontally integrated, multinational firm with multiplant economies of scale generated by inputs with public good characteristics. The econometric analysis of the model conducted with a sample of Austrian firms points to a substitutive relationship of foreign production and home production with foreign production significantly lowering exports. The estimation results, however, indicate in accordance with the economic model that multiplant economies of scales significantly lower the magnitude of substitution. Holding exports constant a complementary relationship between home production and foreign production would appear indicating that substitution would be much higher in the absence of multiplant economies of scale.     

The internationalisation of research and development by multinational enterprises and the transfer sciences

Overseas R&D in multinational enterprises responds to demand side and supply side factors. On the demand side laboratories can help to adapt or develop products for particular markets. However, since these markets may now be much wider than one country, where a laboratory doing such product development is located may also be influenced by where the best scientific inputs are available (i.e. supply-side factors). Also overseas R&D labs may do basic or applied research not related to current market needs or production conditions. The location of this is even more likely to be influenced by countries' scientific capabilities and capacities. The paper investigates the configuration of these influences on overseas R&D, and especially the role and implications of the supply-side factors.I would like to thank Marina Papanastassiou for permission to use material from her database and for valuable discussion of many of the issues dealt with in this paper.     

对我国外贸发展规模与质量问题几点思考

改革开放二十多年来，我国对外贸易已具有了相当规模，对我国经济增长做出了巨大的贡献。但同发达国家相比还存在着很大的差距。召集世界经济陷入低迷状态，我国还要履行入世承诺。在这种“内外双紧”的环境下，我国对外贸易保持适度的发展规模，同时改善外贸质量显得尤为重要。     

Labor market effects of export processing zones in the presence of unemployment

When foreign firms motivated by higher profits engage in off-shore production activities of unemployment ridden host countries, concerns increase about the possibility of exploitation of local workers. However, using a two good two factor model this paper shows that foreign firms’ engagement under the scenario actually improves the host country's structure of wages, skill composition, employment level and wage inequality which cannot be achieved under full employment in the host countries. This paper thus presents a mechanism that explains the effects of export processing zones observed in most of the transitional economies of the world. Results have practical implications for traditional structural changes expected for these economies. Although foreign firms come to earn profits, it is possible for host country workers to take a part of the rent away from the foreign firms as they are doing currently in different parts of the world.     

论我国高额外汇储备之痛

近年来中国外汇储备的高速增长引起了广泛的关注。本文从分析外汇储备应有及现有规模的视角出发，阐迷了高额储备给我国经济发展带来的负面效应，并从控制储备增长和提高储备利用率两方面提出了应对措施。     

Multinational experience and the creation of linkages with local firms: evidence from the electronics industry

This paper focuses on multinational companies' creation of linkageswith local firms in the electronics industry. Evidence is drawnfrom a novel data-set, covering international operations ofthe top European and US electronics companies, over the period1984–95. Econometric tests are provided to highlight howfirms' multinational experience, measured by the extent of theirpresence in foreign countries, affects cooperative agreements,as opposed to licensing and foreign direct investments. It ishighlighted that multinationals' subsidiary accumulation hasa positive and significant impact on collaborative linkageswith local firms. This contrasts with the transaction cost viewunderlying most market-entry literature, but is consistent witha dynamic efficiency perspective which emphasises the role oflinkages in learning and knowledge accumulation and exploitation.     

The performance analysis of chart patterns: Monte Carlo simulation and evidence from the euro/dollar foreign exchange market

We investigate the existence of chart patterns in the euro/dollar intra-daily foreign exchange market. We use two identification methods of the different chart patterns: one built on 5-min close prices only, and one based on both 5-min low and high prices. We look for twelve types of chart patterns and we study the detected patterns through two criteria: predictability and profitability. We run a Monte Carlo simulation to compute the statistical significance of the obtained results. We find an apparent existence of some chart patterns in the currency market. More than one half of detected charts present a significant predictability. Nevertheless, only two chart patterns imply a significant profitability which is however too small to cover the transaction costs. The second extrema detection method provides higher but riskier profits than the first one.

Cultural differences,insecure property rights and the mode of entry decision

We develop a theory of a multinational corporation’s optimal mode of entry in a new market. The foreign firm can choose between a licensing agreement, a wholly owned subsidiary or shared control (joint venture). In an environment in which property rights are insecure, opportunism is possible, and the identification of new business opportunities is costly, we show that the relationship between the quality of the institutional environment and the mode of entry decision is non-monotonic. Licensing is preferred if property rights are strictly enforced, while a joint venture is chosen when property rights are poorly enforced. For intermediate situations, the better use of local knowledge made possible by shared control under a joint venture works as a double edged sword. On the one hand, it makes the monitoring activity of the multinational more credible, on the other it offers insurance to both parties, potentially compromising the incentives faced by the local partner. We are grateful to the Centro Studi Luca d’Agliano for providing financial support. For useful comments we would like to thank Klaus Desmet, Cecilia Testa, Henry Wan and Gerald Willmann and seminar participants at Cornell, Ente Luigi Einaudi, Fundacao Getulio Vargas, Kiel, Milano, Universidad de Sao Paolo, the Midwest International Economics Meetings in Indianapolis, SAET VI conference in Rhodes, and the City University of Hong Kong Conference on Intellectual Property Rights.     

Host country's governance and the size of foreign investors

We find that smaller foreign investors are more sensitive to the quality of host country's governance than larger investors. This may be the case as smaller foreign firms have less bargaining power and are more sensitive to uncertainty and risk.     

Impact of foreign direct investments on economic growth in Africa: Evidence from three decades of panel data analyses

This paper examines the impact of foreign direct investment (FDI) on economic growth in Africa and presents estimations based on panel data of 50 African countries during the period from 1980 to 2009, and the system generalized method of moment (SYS-GMM) estimators as proposed by Blundell and Bond (1998). It finds that FDI inflows had a significant impact on economic growth in the African region during the period of interest. It also finds that while the low level of human resources did not limit the impact of FDI, and that the impact of FDI on economic growth was negative during the period from 1980 to 1994 and positive during the period from 1995 to 2009.     

浅析国际直接投资自由化进程中的中国外资政策

随着全球经济一体化的演进，国际直接投资日趋自由化流动。国际直接投资自由化的兴起在全球经济的增长和国际分工深化的进程中发挥了越来越重要的作用。我国是利用国际直接投资的大国，目前正处于向市场经济转轨的关键时期，经济体制和市场结构还不完善，如何在确保国家经济安全的前提下，推进国际直接投资自由化进程，积极合理地扩大引资规模，应成为人们关注的焦点问题。因此，本文试图探寻国际直接投资自由化的经济机理，总结出国际投资自由化的有效制度安排对现行制度进行调整，以期更好地把握和指导我国改革开放实践及进一步融入国际直接投资自由化进程。     

Entry of foreign firms and the R&D behaviour: a panel data study of domestic and foreign firms in China's manufacturing sector

Rapid globalization has resulted in increased competitive pressures. The entry of foreign firms in a host economy increases the level of competition faced by not only the domestic firms but also the existing foreign firms. We argue that domestic firms, especially in developing countries, respond to this situation by increasing their research and development (R&D) spending, whereas the foreign firms decrease their R&D spending. By making use of firm-level panel data from China's manufacturing sector, over the period 2005–2007, this paper investigates the impact of the entry of foreign firms on R&D behaviour of domestic and foreign firms. Empirical analysis, based on Tobit and Instrumental Variables Tobit regression, reveals that foreign entry increases the R&D intensity of domestic firms but its impact on R&D intensity of foreign firms is negative. The estimated results are found to be robust across balanced and unbalanced panels.     

积极实施"走出去"战略促进对外贸易可持续发展

从我国对外贸易发展面临的问题出发，分析我国“走出去”战略对促进对外贸易的重要作用，提出有效实施“走出去”战略的主要设想。     

中国对外贸易质量评价体系研究

在构建对外贸易质量评价指标体系的基础上,本文从外贸发展和外贸效益两方面衡量了中国的对外贸易质量。研究显示,对外贸易促进了中国的经济增长、加速了技术进步、优化了产业结构,但也存在着一些问题,如贸易促进整体经济增长的同时显著地扩大了地区间经济增长差距,就业推动作用有限且处于下降趋势,技术溢出效应存在地区差异等,为此,本文提出了改善中国对外贸易质量的政策建议。     

Labour mobility and wage inequality in the presence of endogenous foreign investment

This paper examines the impact of labour mobility and increased competition on skilled–unskilled wage inequality and foreign investment. Unlike the existing literature this paper considers a model where foreign investment is endogenously determined. The paper shows that in the shortrun, inflow of either skilled or unskilled labour has no effect on wage inequality but increased competition increases wage inequality. Inflow of either type of labour increases foreign investment but the impact of increased competition on foreign investment cannot be unambiguously determined. Inflow of skilled labour increases wage inequality in the longrun and its effect on foreign investment is positive. Increased competition in the longrun increases wage inequality, foreign investment and welfare.