Conclusive evidence is still missing that signing bilateral investment treaties (BITs) and other international investment agreements helps developing host countries attract more FDI – and, yet, the number of such agreements has mushroomed.
Why developing host countries sign increasingly strict investment agreements
Eric Neumayer, Peter Nunnenkamp, Martin Roy, 1 August 2014
R&D internationalisation during the Global Crisis
Bernhard Dachs, Georg Zahradnik, 6 July 2014
Foreign firms’ share of total business R&D expenditure increased during the last three decades in almost all countries where data is available, but this trend stopped with the Global Crisis of 2008–2009. In most countries, R&D of foreign firms was more severely affected by the crisis than R&D of domestic firms.
The economic impact of inward FDI on the US
Theodore H. Moran, Lindsay Oldenski, 4 March 2014
The US is the second-largest recipient of FDI in the world, behind China, and by far the largest target for FDI among OECD countries (OECD 2013). The numbers are large ($253 billion for the US), and the gap with the next-largest in the OECD is impressive ($63 billion for the UK and $62 billion for France in 2012).
With a little help from my friends – FDI in Africa
Holger Görg, Christiane Krieger-Boden, Adnan Seric, 10 December 2013
Foreign direct investment (FDI) and the emergence of multinational firms (MNEs) have proven successful strategies for the growth performance of host countries. In recent years, developing economies have gained substantial shares of such worldwide FDI flows. Now, a “new wave of FDI” has even swept sub-Saharan Africa, one of the poorest regions of the world (Figure 1).
Is the negative impact of FDI real? Empirical evidence from Japan
Ayumu Tanaka, 20 November 2013
The Japanese government is concerned about the so-called “hollowing out of manufacturing,” referring to the negative effects of FDI on domestic employment. A typical story is described below:
Quid pro quo: Technology capital transfers for market access in China
Thomas Holmes, Ellen McGrattan, Edward C. Prescott, 8 November 2013
Over the past two decades China’s economy has grown rapidly and the nation has become a major destination for foreign direct investment. Surprisingly, little of China's FDI inflows come from technologically advanced, dominant players in global investment such as the US, Europe, and Japan (Prasad and Wei 2007, Branstetter and Foley 2010).
Not all capital waves are alike: A sector-level examination of surges in FDI inflows
Dennis Reinhardt, Salvatore Dell'Erba, 8 July 2013
Capital flows often come in waves. An extensive literature has documented 'surges' and 'bonanzas' in capital flows (e.g. Forbes and Warnock 2012, Reinhart and Reinhart 2009, Ghosh et al. 2012). While capital flows can bring many benefits the literature has also documented the risks associated with this cyclical nature.
How big are productivity gains from FDI?
Sebnem Kalemli-Ozcan, Christian Fons-Rosen, Bent E. Sørensen, Carolina Villegas-Sanchez, Vadym Volosovych, 4 June 2013
During the decades of globalisation, flows of foreign direct investment (FDI) to both developed and emerging markets have surged in parallel with extensive policy momentum to increase FDI at the expense of debt as the major source of external financing.
This pro-FDI policy urge is justified by the perceived benefits of FDI on the host country. For example:
Service-sector reforms enhance manufacturing productivity: Evidence from Indonesia
Victor Duggan, Sjamsu Rahardja, Gonzalo Varela, 22 May 2013
Just as Cinderella was the forgotten sister with great potential, so service-sector foreign direct investment may be the neglected sibling of trade policy.
Estimating the effect of the TPP on Japan’s growth
Yasuyuki Todo, 11 May 2013
Prime Minister Abe recently announced that Japan would participate in the Trans-Pacific Partnership negotiations, with all other Trans-Pacific Partnership parties now having accepted Japan.1 This trade demarche is viewed as a key part of ‘Abenomics’ (Petri, Plummer and Zhai 2013). Although the dye has been cast, the debate in Japan has not ended.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Cadot, de Melo, 16 June 2014
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- The economics of Scottish independence in an interdependent worldHughes Hallett
- Making city lights shine brighterYusuf, Leipziger
- The euro in the 'currency war'Bénassy-Quéré, Martin
- The roots of shadow bankingPerotti
- What’s wrong with Europe?Baldini, Manasse
- Corporate Finance Theory Symposium19 - 20 September 2014 / Cambridge / Judge Business School, Cambridge University
- International Trade, Finance, and Macroeconomics: Research Frontiers and Challenges for Policy18 - 19 December 2014 / The Bank of England, London / The Bank of England, Centre for Macroeconomics and CEPR