The U-Shaped Productivity Dynamics of French Exporters

We use data on French manufacturing firms to reveal that the productivity dynamics of new exporters is typically U-shaped. Prior to entry, firm productivity temporarily decreases, then recovers contemporaneously with entry, as the benefits from sales to foreign markets accrue. We show that the U-shaped pattern is more pronounced for intensively exporting firms and for firms operating in capital-intensive or high-technology sectors. This finding suggests that firms prepare to become exporters through prior specific investments and learning-to-export mechanisms. We then point to the limitations of studies that focus only on date of entry to exporting to discriminate between self-selection versus learning mechanisms. JEL no.  F10, F14, L60     

Macroeconomic policy-induced wealth effects on Chinese foreign housing investments

The unpegging of China's currency in 2005 creates positive wealth effects that trigger Chinese foreign buyers' responses to pay 3.42% more in housing prices relative to other foreign buyers. We find evidence of a higher propensity to purchase housing units with more visible features among Chinese foreign buyers after the policy shock relative to other foreign buyers. Chinese foreign buyers pay 11.0% premiums for high-floor units, 7.25% premiums for large units and 4.61% for luxury (more expensive) units after experiencing positive incomrtde shocks. We find that conspicuous consumption motives are augmented in high-income neighborhoods and neighborhoods with strong enclaves and social networks comprising residents from China. We show that conspicuous consumption motives are more significant for Chinese foreign buyers who are owner occupiers than for those who are investors. The results survive a slew of robustness and falsification tests, and we cannot reject the finding of wealth-induced conspicuous consumption by Chinese foreign buyers in Singapore's private housing market.     

The role of foreign direct investment in the host-country firm selection process: firm-level evidence from Slovenian manufacturing

This paper examines the role of inward foreign direct investment (FDI) in firm selection processes in the Slovenian manufacturing sector in the 1994–2003 period. It adopts the firm dynamics framework that allows testing of selection effects directly by assessing the impact of foreign firms’ activity on the probability of exiting of local firms (crowding out). The results show that intra-industry productivity spillover effects offset only a minor part of the competition pressure which results from foreign firm entry, hence incumbent firms experience a drop in their survival probability upon a foreign firm’s entry within a particular industry. This result is driven by foreign firm entry of the greenfield type, as entry through the acquisition of existing firms has no significant effect. The strength of the crowding-out effect decreases with the incumbent firm’s export propensity. There is no significant evidence that inward FDI would stimulate the selection process through backward linkages in the upstream supplying industries, whereas foreign firms’ activity reduces the exit probability of downstream local customers (through forward linkages).     

Determinants of China's and Japan's Foreign Aid Allocations in Africa

Foreign aid plays an important role in promoting economic development in Africa. Recently, several countries, most notably China, have emerged as alternative sources of foreign aid. However, their motives for providing foreign aid have been questioned. The present study examines and compares determinants of China's and Japan's foreign aid allocations in Africa. It assumes that the distribution of foreign aid was determined by the aid donors’ self‐interest and also by the aid recipients’ needs. Three panel model methods, namely, the pooled OLS method, the one‐way fixed effects method and the two‐way fixed effects methods, were employed to examine and compare the patterns of China's and Japan's foreign aid allocation in Africa. The main finding was that the provision of foreign aid by China and Japan was primarily driven by the aid donors’ self‐interest. Additionally, the size of population in a recipient country was an important element to determine China's and Japan's aid allocations. The findings also suggest that Japan tended to pay more attention to the aid recipient countries’ needs as well as to the quality of governance and institutions in these countries. Overall, the findings indicate that there was no considerable difference in the motives for the provision of aid between the two aid donor countries.     

Government Funding Policy Towards Communicable Diseases

The paper investigates the choice of government to offer a grant to a potential entrant aimed at reducing its fixed cost of entry when a monopoly firm provides the needed pharmaceutical drug given the prevalence path of the disease in a dynamic economic framework. The results of present study suggest that government can use a grant to credibly threaten the entry of a new firm into the industry and to promote limit-output pricing by the incumbent firm. The paper therefore suggests that the government policy set includes subsidizing the potential entry of a new firm into an industry manufacturing pharmaceutical drugs for the treatment of a communicable disease. Clearly, foreign aid could also be used as a source of this credible threat. The study also extends the paper by Mechoulan (2007) through the introduction of the government’s choice into the model.

行业关联、外资进入与出口质量——来自中国企业的微观证据

外资合理利用对实现我国本土企业技术进步和转型升级具有重要意义,文章聚焦外资的行业关联从出口升级的视角再次探讨这一问题。文章运用中国工业企业数据库、海关统计数据库和投入产出表的匹配数据,从行业内水平溢出、产业间垂直关联等多个维度系统研究了外资进入对我国企业出口产品质量的影响。文章发现:(1)外资进入显著促进企业出口产品质量升级,外资水平溢出、前向关联和后向关联的质量提升效应均显著,其中后向关联效应最大。(2)外资水平溢出、前向关联和后向关联对企业出口产品质量提升的影响渠道分别通过研发效应、中间品投入效应和市场规模效应得以实现。(3)异质性结果表明,外资进入对非国有企业、一般贸易企业、东部地区企业以及与外资技术差距较小企业的出口质量提升作用更为突出。文章为外资利用与企业出口质量关系提供了更为丰富的微观证据和理论依据,能够为当前中国新一轮高水平对外开放下引资政策调整和优化提供一定的政策启示。     

日本零售企业进入海外市场的动机、经营绩效与撤退原因

在零售商业的国际化过程中，日本零售企业扮演了重要角色．日本零售企业进入海外市场的动机与决策过程因进入市场、进入时期及业态形式的不同而不同，同时，日本零售企业在海外市场的经营绩效也是不容乐观的，并出现了大量的撤退案例。研究日本零售企业进入海外市场的动机及经营绩效不佳的原因，不仅对日本零售企业制定跨国经营战略具有参考价值，而且对包括进入国家或地区在内的全体零售企业制定零售经营战略也具有借鉴意义．     

Financial Liberalization and Foreign Bank Entry on the Domestic Banking Performance in MENA Countries

Abstract: This study examines the impact of financial liberalization and foreign bank entry on the domestic banking sector from 1996 to 2007, and builds upon and expands the work of Lee (2002). We find that foreign bank entry, financial liberalization, ownership structure and degree of openness of foreign bank entry positively impact domestic banking system operating efficiency, capitalization, risk management, long‐term soundness, financial performance as well as economic and financial development. However, foreign bank entry is associated with reduced profit margins and increased operating costs of domestic banks in countries with less developed capital markets. Empirical evidence seems to support the argument that foreign bank presence leads to better allocation of capital and eliminates connected lending practices.     

Foreign entry,quality, and cultural distance: product-level evidence from US movie exports

This paper investigates the effect of quality on foreign entry using data on international movie exports and direct and revealed measures of movie quality. Strict quality sorting is predicted by a model of firm heterogeneity. An alternative model is random entry, in which entry decisions are independent of the movie’s quality. I develop a discrete choice model that allows for both of these extremes as special cases, and use graphical techniques and simulations to compare their predictions to the data. I then use regression analysis to estimate the effect of quality on the propensity to enter foreign markets. A one-standard-deviation increase in quality increases the probability of entry by 25–50 %. Systematic differences in taste for different genre types are used to estimate a measure of cultural distance between countries. Movies in “culturally dependent” genres are less likely to enter foreign markets and their probability of entry is less sensitive to quality. The cultural distance measure enters a gravity equation of US bilateral trade significantly.     

Entry in Foreign Markets under Asymmetric Information and Demand Uncertainty

This paper examines the mode of entry of a multinational firm that has less information about the host market stochastic demand than the local firm. The foreign firm can enter the market either through direct investment or exports. Each entry mode entails different costs and has different informational implications. Entry through foreign direct investment (FDI) is favored by greater variability in demand. Interestingly enough, strategic behavior by the incumbent firm, which deviates from its first period monopoly output, might be aimed at increasing the probability of foreign entry through FDI despite having to compete against an equally informed and efficient entrant; this never happens in a symmetric information environment. Such host firm behavior is aimed at reducing the strategic uncertainty derived from the foreign firm's beliefs. Compared with the symmetric information setting, entry via direct investment may occur in more cases.     

论中国资本市场的国际接轨问题

本文从市场准入、内地企业到境外融资和金融监管体制角度论述了我国资本市场如何同国际接轨问题,指出应尽快推行合格的境外机构投资者制度,允许外资直接投资、入股或以技术股参与国内资本市场的重组并购和改革,鼓励建立以市场为导向的金融企业、保险业及咨询中介机构的合作。     

International Reserves: Precautionary Versus Mercantilist Views,Theory and Evidence

This paper compares the importance of precautionary and mercantilist motives in the hoarding of international reserves by developing countries. Overall, empirical results support precautionary motives; in particular, a more liberal capital account regime increases international reserves. Theoretically, large precautionary demand for international reserves arises as a self-insurance to avoid costly liquidation of long-term projects when the economy is susceptible to sudden stops. The welfare gain from the optimal management of international reserves is of a first-order magnitude, reducing the welfare cost of liquidity shocks from a first-order to a second-order magnitude.

Foreign direct investment, agglomerations, and demonstration effects: An empirical investigation

Previous studies have shown that the localisation of firms can be an important factor in attracting new foreign direct investment into a host country. The authors distinguish between “efficiency agglomerations” which arise as firms increase their efficiency by locating close to each other, and “demonstration effects” whereby existing firms send signals to new investors as to the reliability and attractiveness of the host country. They try to disentangle these two effects by examining the location of US firms in Ireland. They find that both sources of agglomerations have been important determinants of US firm entry into Ireland. JEL no. F23     

Assessing the Impact of Antitrust Intervention by the Italian Competition Authority

Summary  In the last 2 years the Italian Competition Authority conducted several impact analyses, two of which – regarding baby milk and fresh milk markets – are presented here. A few lessons can be learned from these analyses. First, uncovering a cartel and imposing fines by themselves do not necessarily interrupt the effects of the anticompetitive behaviour. Second, by disclosing new information to the general public, an investigation can make the market more transparent so as to increase the probability of a successful entry. Third, in complex markets, remedies that have been imposed in clearing mergers may work out in unexpected ways. Fourth, mergers involving nationwide sellers should not be assessed only by watching the local relevant markets, as the incentive structure for coordination can be modified also at national level. Fifth, it seems advisable to appoint an independent trustee when divestures are imposed. Italian Competition Authority. The views expressed in the article are those of the author and do not involve the responsibility of the Italian Authority. I want to thank Fabio Massimo Esposito and an anonymous referee for comments and observations. All remaining errors are my own.     

A Survey of the literature on the determinants of foreign portfolio investments in the United States

Conclusions In the last several years we have seen a substantial theoretical advancement in our understanding of the factors determining international portfolio capital movements. From the mechanistic flow theory we have progressed to the portfolio-adjustment theory which rests on a firmer microeconomic foundation. However, because of the multifarious functions of the United States in the world economy the portfolio-adjustment theory is not quite adequate in explaining the foreign portfolio investments in the United States. There are other motives such as maintaining working balances and compensatory balances in addition to the expected utility maximization. In some studies ad hoc assumptions are introduced to account for these motives tor holding U.S. liabilities. Albeit some statistically successful results there is much to be desired in this simple portfolio approach modified withad hoc assumptions. Despite the theoretical weakness we might have seen more empirical research in this area if data on wealth for foreign countries were available. Furthermore, the few existing studies were carried out by doing away with the wealth variable without any convincing justification. Given the constraint of data a more persuasive argument will have to be presented in favor of deleting the wealth variable or using an alternative variable. It seems that a proper use of estimates of permanent income, which can be approximated empirically, may be successful in empirical estimations of capital flows.     

知识密集型企业国际化战略动机与进入方式选择关系研究

在知识经济下,知识成为最重要的生产要素,知识是企业取得持续竞争优势的来源.国外市场进入方式选择关系到国际化成功与失败,而企业国际化战略动机是影响企业国外市场进入方式选择的首要因素.本文首先从组织学习理论的视角分析了知识密集型企业国际化的两种战略动机：“知识寻求”与“知识利用”;其次,从知识基础理论的观点分析了知识密集型企业的国外市场进入方式,并根据知识获取的难易程度将其分为高、低知识获取型进入方式;再次,分析了知识密集型企业国际化战略动机与国外市场进入方式选择之间的内在关系;最后,提出对中国知识密集型企业国际化的启示.     

外资银行进入对东道国银行业效率的影响——东欧国家的经验与中国的实践

东欧国家银行改革的经验表明,外资银行进入能普遍提高东道国银行业的效率。但是,外资银行发挥积极作用亦取决于一定条件:东道国经济发展水平、银行业规模及发育程度、监管水平、银行业的改革路径和引资方式。本文在综述东欧国家银行业改革经验的基础上,提出中国银行业改革的7个命题,并用中国24家银行1999～2006年间的数据构建模型进行检验,最后得出结论:短期内外资银行进入会导致东道国银行业利润水平下降、风险管理水平上升,在中国的背景下可以认定这是外资银行积极作用的发挥;外资银行机构数量的增加和持股比重的上升都能刺激中国银行业效率的改进,但是外资银行持股比重的影响更具普遍性;不同类型银行对外资银行进入的反应存在差异,国有商业银行反应比较迟钝,而股份制和城市商业银行反应比较迅速。     

Vertical Integration,Foreign Multinationals and Stigler's Hypotheses: An Empirical Test Using Malaysian Data*

In this paper the hypotheses on motives for vertical integration as proposed by Stigler are empirically tested using a panel dataset from Malaysian manufacturing under both fixed‐effects and random‐effects specifications. Because the degree of multinational participation is expected to influence the results of the regression estimates, empirical tests are conducted with and without controlling for the effect of foreign firms’ participation. Depending on model specifications, evidence is found in favor of Stigler's hypotheses where vertical integration is positively related to demand growth and industry concentration. This result is generally consistent with those found in other vertical integration studies. Significantly, the coefficient estimates of the growth variable are not significant and biased downwards if there is no control on the effect of foreign multinationals in the estimation process.     

Is Exporting a Source of Productivity Spillovers?

This paper investigates whether exporting generates positive productivity spillover effects on other plants in the same industry and on plants in vertically related industries. Using data for Chilean manufacturing plants from 1990 to 1999, we find strong evidence that domestic as well as foreign-owned exporting plants improve productivity of local suppliers. We also find some evidence of horizontal spillovers from exporting but these are mainly generated by plants with foreign ownership. These results suggest that positive productivity spillovers are not only generated by the presence of foreign-owned exporting plants but also by exporting activity of domestic firms. The results are robust to controls for agglomeration of economic activity, the importance of non-exporting foreign-owned plants, and plant unobserved heterogeneity. JEL no.  F10, F23, O3, O54     

Friendly Fire? The Impact of US Antidumping Enforcement on US Exporters

While there has been considerable interest in recent years in the role of macroeconomic determinants of antidumping actions by the United States and other traditional users, on the one hand, and the determinants of the growing global usage of this trade policy instrument, on the other, there has to date been no systematic exploration of the motivations for the significant number of foreign antidumping cases filed against US exporters. Several observers have remarked that the growing number of foreign users of antidumping might threaten US exporters, but the determinants of these actions have not been examined. That is the purpose of this study. We find that these actions are in part explained by macroeconomic forces and as a response to US export superiority in particular sectors, however a significant role (and larger than found for global antidumping more generally) is played by retaliation for US trade policy actions. JEL no.  F13