Financing investment in environmentally sound technologies: Foreign direct investment versus foreign debt finance

Anyangah, Joshua Okeyo

doi:10.1016/j.reseneeco.2009.11.005

Cited by 6 publications

(3 citation statements)

References 35 publications

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“…This may contribute to explain why for many years the developing countries have refused to sign international agreements concerning the protection of intellectual property rights, and others have laxly enforced domestic laws and regulations designed for this purpose (Helpman 1993). The international trade models accounting for the effects of an increase of the IPR legal protection on technological transfers from North to South of the world have detected two main channels, by means of which a stronger protection of the IPR might encourage technological progress: a) international trade (trade); b) foreign direct investment (fdi) (Anyangah 2010;Glass, Wu 2007;Glass, Saggi 2002) 6 . Moreover increasing the degree of legal protection of IPR has the effect of stimulating patent application by residents (par) (Allred, Park 2007;Branstetter et al 2006;Parello 2008).…”

Section: International Trade Foreign Direct Investment Patents Applmentioning

confidence: 99%

The International Strengthening of Ipr and Air Pollution Abatement: The Role of the Trips Agreement

Vita

2015

Technological and Economic Development of Economy

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Abstract. This paper comes in the wake of the literature considering technological progress as the main device to offset air pollution caused by economic activity. The issue has been extensively studied in general, but there is no previous research on the effects that an international strengthening of legal protection of Intellectual Property Rights (IPR) due to the Uruguay Round Agreement and the Annex on Trade-Related aspects of the IPR (TRIPs, for short), underwritten in 1994, may have had on worldwide emissions, as a result of the discovery of new or more efficient air pollution abatement technologies. Different econometric models are used to give a quantitative measure of the TRIPs agreement to reduce air pollution. In particular, the impact of the TRIPs is addressed using a dummy variable and the index of Ginarte and Park (Ginarte, Park 1997) that is one of the more commonly used indicators of TRIPs enforcement employed in economic literature. The findings of this research partially support the idea that the strengthening of a uniform minimum standard protection level of IPR, among the member countries of the World Trade Organization, may help to reduce air pollution emissions.

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Section: International Trade Foreign Direct Investment Patents Applmentioning

confidence: 99%

The International Strengthening of Ipr and Air Pollution Abatement: The Role of the Trips Agreement

Vita

2015

Technological and Economic Development of Economy

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“…However, some of these measures are not explicitly aimed at promoting technology-based FDI, but rather directed towards attracting financial capital. Clearly, FDI inflows can be important sources of hardware and software technologies and can contribute to the development of national scientific and organisational capabilities (Diyamett and Mutambla 2015;Anyangah 2010;Chowla 2005;Sawada 2005;World Bank 1993). In fact, FDI is critical for growing African economies and stimulating human development on the continent.…”

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confidence: 99%

Foreign Direct Investment and the Transfer of Technologies to Angola's Energy Sector

Manyuchi

2016

Africa Spectrum

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The relationship between foreign direct investment (FDI) and the transfer of technology is undergoing a great deal of academic scrutiny and policy analysis. A growing body of literature shows that FDI can be a channel by which to transfer and/or acquire technology; however, there is a paucity of empirical studies on this as it relates to African economies. This article seeks to fill some of that gap by focusing on how FDI inflows are contributing to the transfer of technologies specifically into Angola's energy sector. The analysis is based on qualitative research conducted in Angola in 2014 and reveals that energy production and distribution-technology infrastructure, including machinery and human skills, have been developed largely through FDI inflows. There is, however, no evidence that this FDI has enlarged Angola's endogenous scientific and technological research capabilities in the energy sector; therefore, policies that promote these capabilities, especially manufacturing capabilities, should be introduced.

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“…uncertainty on the (steeper) marginal benefit function has greater effect on profit than uncertainty on the (flatter) marginal cost function. Anyanga (2010) compared foreign direct investment (FDI) and debt financing to develop environmentally sound technologies. He found that debt financing fares better than FDI because it requires coping only with adverse selection concerning the firm's own productivity.…”

mentioning

confidence: 99%

Designing Environmental Instruments to Finance Agricultural Intensification Through the Clean Development Mechanism: Direct Cost Subsidy Versus Tax Cut Under Asymmetric Information

Honlonkou

Hassan

2014

Sustainable Intensification to Advance Food Security and Enhance Climate Resilience in Africa

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Various agreements addressing climate change plead for the adoption of innovative green technologies to reduce production of greenhouse gases responsible for global warming. Yet, the most successful instrument so far, the Clean Development Mechanism (CDM) is at pains to succeed in small, developing countries facing sustainable development problems like food security. Worse, while the CDM succeeded in financing agricultural projects, few are funded in small, developing countries.A tax cut is one innovative financial scheme that many countries enact in their investment code to promote environmentally sound technologies. Tax cuts return a portion of investment costs to firms that implement green innovations, which ultimately reduces investment costs and so adds to their net benefits. We compare this scheme to a direct cost subsidy designed to offer firms access to capital at a lower interest, for their capacities to boost the use of CDM in agriculture. This paper shows that the narrow scope of tax cuts compared to direct cost subsidies make corporate tax relief inadequate for the needs of developing countries. We also show that while both schemes are equally efficient under perfect conditions and asymmetric information, the direct cost subsidy is more appropriate to further environmental and sustainability goals like food security in developing countries where informational problems are pervasive. Empirical results support these results (JEL: D61, D82, G21, O13, Q01, Q54, Q55.)

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Financing investment in environmentally sound technologies: Foreign direct investment versus foreign debt finance

Cited by 6 publications

References 35 publications

The International Strengthening of Ipr and Air Pollution Abatement: The Role of the Trips Agreement

The International Strengthening of Ipr and Air Pollution Abatement: The Role of the Trips Agreement

Foreign Direct Investment and the Transfer of Technologies to Angola's Energy Sector

Designing Environmental Instruments to Finance Agricultural Intensification Through the Clean Development Mechanism: Direct Cost Subsidy Versus Tax Cut Under Asymmetric Information

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