273 research outputs found
With Brexit, inward investment will fall in the UK
No full textSupply chains cross borders many times before components go into a final product in any EU country, write David Bailey, Nigel Driffield and Michail Karoglo
Brexit means inward investment to the UK will fall
No full textSupply chains cross borders many times before components go into a final product in any EU country, write David Bailey, Nigel Driffield and Michail Karoglou. When the UK leaves the Single Market, it will be a less attractive destination for firms wanting to coordinate their resources. The devaluation of sterling also lowers the expected returns from UK investment when translated into the home country’s currency
The double-edged sword of inward FDI for the growth and sustainability of emerging, developing, and under-developed economies
No full textOn the search for spillovers from foreign direct investment (FDI) with spatial dependency
No full textDRIFFIELD N. (2006) On the search for spillovers from foreign direct investment (FDI) with spatial dependency, Regional Studies 40, 107-119. This paper examines various specifications that are used within the literature to test for spillovers from foreign direct investment (FDI). Analysis provides significant evidence of externalities from inward FDI, but it shows that these externalities are more localized than has previously been believed. Further, the results demonstrate that the econometric treatment of issues such as agglomeration, contiguity and spatial dependence significantly changes the conclusions regarding local and national spillovers from FDI, and productivity growth more generally. Spillovers, Foreign direct investment (FDI), Spatial dependence DRIFFIELD N. (2006) A la recherche des retombees dues a l'investissement direct etranger (IDE) localise, Regional Studies 40, 107-119. Cet article cherche a examiner diverses mesures employees dans la documentation afin de rechercher la presence de retombees dues a l'investissement direct etranger (IDE). L'analyse fournit d'importantes preuves de la presence des effets externes dues a l'IDE. Elle montre aussi que ces effets externes s'averent plus localises que l'on n'avait cru. Qui plus est, les resultats demontrent que l'emploi d'une facon econometrique pour aborder des questions telles l'agglomeration, la contiguite et la dependance geographique remet serieusement en question les conclusions quant aux retombees locales et nationales dues a l'IDE en particulier, et la croissance de la productivite en general. Retombees, Investissement direct etranger (IDE), Dependance geographique DRIFFIELD N. (2006) Zur Suche nach Uberlaufen von Auslandsdirektinvestierungen (FDI) mit raumlicher Abhangigkeit, Regional Studies 40, 107-119. Dieser Aufsatz untersucht verschiedenartige Aufstellungen, die in der Literatur zur Prufung von Uberlaufen von Auslandsdirektinvestierungen benutzt werden. Die Analyse liefert signifikante Beweise externer Effekte von Direktinvestierungen aus dem Ausland, zeigt dann aber auf, dass diese externen Effekte ortlich starker begrenzt sind als fruher angenommen wurde. Daruberhinaus zeigen die Ergebnisse, dass die okonomische Behandlung von Fragen wie z.B. Ballung, unmittelbare Nachbarschaft und raumliche Abhangigkeit die Schlussfolgerung bezuglich ortlicher und uberregionaler Uberlaufe von Auslandsdirektinvestierungen signifikant und die Produktionszunahme ganz allgemein verandert. Uberlaufe, Auslandsdirektinvestierungen (FDI), raumliche Abhangigkeit DRIFFIELD N. (2006) En busca de desbordamientos de la IDE con dependencia espacial, Regional Studies 40, 107-119. En este documento se estudian las diferentes especificaciones que se utilizan en la literatura para comprobar los efectos de desbordamiento de la inversion directa extranjera (IDE). En este analisis mostramos importantes pruebas para los efectos externos de la inversion directa extranjera interior pero demostramos ademas que tales efectos estan mas localizados de lo que se pensaba. Asimismo los resultados demuestran que el tratamiento econometrico de factores, tales como aglomeracion, contiguidad y dependencia espacial, cambia en gran medida las conclusiones con respecto al efecto de desbordamiento local y nacional de la IDE, y con respecto al crecimiento de productividad en general. Desbordamientos, IDE, Dependencia espacial
Foreign and Domestic Investment: Regional Development or Crowding Out?
No full textDRIFFIELD N. and HUGHES D. (2003) Foreign and domestic investment: regional development or crowding out?, Reg. Studies 37 , 277-288. This paper tests, at the regional and industry level, the extent to which domestic investment is stimulated or crowded out by inward foreign direct investment. The paper develops a model of domestic investment, based on standard models drawn from macroeconomics and industrial economics. The paper then goes on to show that, at a general level, the "development' or agglomeration hypothesis is confirmed that domestic investment is indeed stimulated by inward investment. However, there is also evidence that, in certain regions, inward investment has crowded out domestic investment. The implications of this from the perspective of regional policy are briefly discussed. DRIFFIELD N. et HUGHES D. (2003) L'investissement direct é tranger et l'investissement intérieur: une question d'amé nagement du territoire ou un effet d'évincement?, Reg. Studies 37 , 277-288. Cet article cherche à évaluer au niveau ré gional et sur le plan industriel dans quelle mesure l'investissement inté rieur est encouragé ou évincé par l'investissement direct étranger. L'article construit un modèle de l'investissement intérieur fondé sur des modèles types tirés de la macroéconomie et de l'économie industrielle. L'article montre que globalement les hypothèses de "développement' ou d'agglomération confirment que l'investisseent intérieur est stimulé par l'investissmeent direct étranger. Cependant, il y a aussi des preuves que, dans certaines régions, l' investissement direct étranger évince l'investissment intérieur. On discute en bref des retombées sous l'angle de la politique régionale. DRIFFIELD N. und HUGHES D. (2003) Investierungen vom Ausland oder vom Inland: Regionale Entwicklung oder Verdrängung?, Reg. Studies 37 , 277-288. Dieser Aufsatz prüft auf regionaler und Industrieebene, inwieweit Investierungen des eigenen Landes durch Direktinvestitionen vom Ausland angeregt oder verdrängt werden. Der Aufsatz entwickelt ein Modell der Inlandinvestierungen, das sich auf Standardmodelle der Makroökonomie und der sich mit Industrie befassenden Wirtschaftswissenschaft stützt. Es wird sodann gezeigt, daß auf allgemeiner Ebene die " Entwicklung' oder Ballungshypothek bestätigt wird: daß Inlandinvestierungen tatsächlich durch Investititionen aus dem Ausland angeregt werden. Es gibt jedoch auch Beweise, daß in bestimmten Regionen Investierungen aus dem Ausland solche des Inlands verdrängt haben. Die sich daraus ergebenden Implikationen werden kurz vom Gesichtspunkt der Regionalpolitik aus diskutiert.Inward Investment, Domestic Investment, Crowding Out,
FDI, trade and growth, a causal link?
No full text. FDI, Trade and Growth, a Causal Link? (RP0710) Prof Nigel DRIFFIELD Dr Rakesh BISSOONDEEAL Mayang Pramadhani Non-technical Summary This paper explores the relationship between imports, exports, foreign direct investment and growth. For some time there has been a good deal of debate whether trade and foreign direct investment) FDI are substitutes and complements, with the existing literature generating some rather contradictory findings. We show, for Indonesia that inward FDI and both imports and exports are complementary, and further that FDI causes an increase in trade. This is of particular interest for a country such as Indonesia, that has attracted a high proportion of export-orientated inward investment. This, theoretically at least is associated with an increase in imports, in the form of capital goods and components, but a reduction in imports. We show that the previous literature that fails to find such a relationship does so because both trade and FDI are associated with growth, and previous work ignores these growth effects when seeking to isolate the relationship between trade and FDI
Are Foreign Firms More Technologically Intensive? UK Establishment Evidence From the ARD
No full textEvolution of Capital Strcture in East Asia: Corporate Inertia or Endeavours?
No full textThe present paper examines the capital structure adjustment dynamics of listed non-financial corporations in seven East Asian countries during 1994-2002. Compared to firms in the least affected countries, average leverages were much higher among firms in the worst affected countries while the average speeds of adjustment were lower. This general ranking is robust to various alternative specifications and sample selections. We argue that this pattern is closely linked to weaknesses in regulatory environment and lack of access to alternative sources of finance in the worst affected countries.
Empirical studies of corporate governance in China
No full textThe thesis aims to provide empirical studies towards Chinese corporate governance. Since China initially established its stock exchange system in the 1990s, it has gone through different stages of changes to become a more market-oriented system. Extensive studies have been conducted in Chinese corporate governance, however, many were theoretical discussion focusing on the early stages and there‘s a general lack of empirical analysis. This paper provides three empirical analysis of the Chinese corporate governance: the overall market discipline efficiency, the impact of capital structure on agency costs, the status of 2005- 2006 reform that substantially modified ownership structure of Chinese listed firms and separated ownership and control of listed firms. The three empirical studies were selected to reflect four key issues that need answering: the first empirical study, using event study to detect market discipline on a collective level. This study filled a gap in the Chinese stock market literature for being the first one ever using cross-market data to test market discipline. The second empirical study endeavoured to contribute to the existing corporate governance literature regarding capital structure and agency costs. Two conclusions can be made through this study: 1) for Chinese listed firms, higher gearing means higher asset turnover ratios and ROE, i.e. more debts seem to reduce agency costs; 2) concentration level of shares appears to be irrelevant with company performance, controlling shareholders didn‘t seem to commit to the improvement of corporate assets utilization or contribute to reducing agency costs. This study addressed a key issue in Chinese corporate governance since the state has significant shareholding in most big listed companies. The discussion of corporate governance in the Chinese context would be completely meaningless without discussing the state‘s role in corporate governance, given that about 2/3 of the almost all shares were non-circulating shares controlled by the state before the 2005-2006 overhaul ownership reform. The third study focused on the 2005-2006 reform of ownership of Chinese listed firms. By collecting large-scale data covering all 64 groups of Chinese listed companies went through the reform by the end of 2006 (accounting for about 97.86% and 96.76% of the total market value of Shanghai (SSE) and Shenzhen Stock Exchange (SZSE) respectively), a comprehensive study about the ownership reform was conducted. This would be first and most comprehensive empirical study in this area. The study of separated ownership and control of listed firm is the first study conducted using the ultimate ownership concept in Chinese context
Multinational firms, productivity and employment
No full textOver the last three decades foreign direct investment (FDI) has become the most visible driver of globalisation. It has grown faster than world output and international trade and now reports world annual flows exceeding 1,000 billion US dollars. In this period, Germany has undergone significant changes in order to play an important role in the globalisation process. Apart from being a member state of the European Union (EU) whose key feature is the free flow of trade, investment and labour, the re-unification of East and West Germany in 1990 has been a significant development. This in effect has meant that East Germany as well as other Eastern European nations opened up to foreign investment for the first time. In this period, Germany has attracted in excess of 10 per cent of inward FDI into the EU and invested around 15 per cent of all FDI in the EU. This thesis explores empirically the potential impact of FDI on firms operating in and investing from Germany over a ten year period. Using panel data at the firm-level it concentrates on three areas relating to FDI. Firstly, it considers whether foreign-owned firms are more productive than German multinational firms and German non-multinational firms. Secondly, the thesis considers the impact of German investments abroad on domestic productivity. Finally, employment effects emanating from outward high-tech FDI are estimated for the leading OECD (Organisation of Economic Co-operation and Development) countries, namely Germany, Belgium, France, the Netherlands, Sweden, the United Kingdom and Japan. The findings of the first analysis indicate that while foreign-owned firms are generally more productive than German non-multinationals, there is no clear cut difference between foreign-owned firms and German multinationals. These differences would not have been uncovered, had the analysis compared foreign firms with all domestic firms. Equally, location within Germany is also important, as this productivity gap is more pronounced for firms which are located in the Eastern states. The findings of the second analysis suggest that engaging in outward FDI has an overall positive effect on the parent firm's productivity at home. Finally, results of the third analysis show that an expansion of high-tech offshoring activities by OECD multinationals (MNEs) is not associated with any reduction in employment at home
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