Foreign Direct Investment in the Real and Financial Sector of Industrial Countries: A Summary

Herrmann, Heinz; Lipsey, Robert E.

doi:10.1007/978-3-540-24736-4_1

Cited by 22 publications

(7 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A standing concern regarding IPAs targeting is connected to the potential distortions such policy might cause (e.g. Herrmann and Lipsey, 2003). As with any policy that targets certain actors, to the extent that benefits stemming from such promotion are not extended to firms that do not meet the eligibility criteria and that such criteria are established by countries on a discretionary basis, the playing field may not be level (see Box 1).…”

Section: Fdi Promotion Measures-preliminary Observations On Effectivementioning

confidence: 99%

International Technology Transfer measures in an interconnected world

Kowalski

Rabaioli

Vallejo

2017

OECD Trade Policy Papers

View full text Add to dashboard Cite

This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD countries. The publication of this document has been authorised by Ken Ash, Director of the Trade and Agriculture Directorate This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

show abstract

Section: Fdi Promotion Measures-preliminary Observations On Effectivementioning

confidence: 99%

International Technology Transfer measures in an interconnected world

Kowalski

Rabaioli

Vallejo

2017

OECD Trade Policy Papers

View full text Add to dashboard Cite

show abstract

“…Since multinational companies stand for firms with ownership-specific advantages (Dunning 1998), one may expect that FDI inflows also bring international technology transfers. In the case of greenfield investment, inflows also have a positive effect on capital accumulation (Blomström and Kokko 1998;Blomstrom et al 2000;Herrmann and Lipsey 2003). Int.…”

Section: Introductionmentioning

confidence: 99%

BREXIT and Foreign Direct Investment: Key Issues and New Empirical Findings

Welfens

Baier

2018

IJFS

View full text Add to dashboard Cite

This contribution takes a new look at the gravity equation model in relation to foreign direct investment (FDI) of leading industrialized countries which presents a useful basis for assessing certain potential impacts arising from BREXIT-the envisaged leaving of the EU by the United Kingdom. The gravity equation estimated subsequently allows one to consider the case of BREXIT and the broader role of EU membership and other variables. Looking at the period from 1985 to 2012 for a dataset which contains 34 OECD (Organisation for Economic Cooperation and Development) countries, Pseudo Poisson Maximum Likelihood (PPML) dyadic fixed estimations take into account a broad set of approaches and variables. Besides the traditional variables of the EU/EU single-market membership of the source country and of the host country, we further consider the role of trade openness as well as corporate tax rates and the ratio of inward FDI stock to total capital stock. The analysis shows that trade openness is a variable which can be largely replaced by the inward FDI stock/capital stock ratio so that gravity FDI modeling with a strong emphasis on trade openness is likely to overstate the role of trade and to understate the role of relative FDI accumulation effects. The implication for BREXIT analysis is that the UK will face three impulses for FDI inflows: (1) leaving the EU single market will strongly reduce FDI inflows; (2) if foreign ownership in UK capital stock should strongly increase in the run-up to the BREXIT year 2019, part of the dampening effects of leaving the EU will be mitigated by the increase of the FDI stock/capital stock ratio, which in turn is likely to reflect a Froot-Stein effect related to real pound depreciation for 2016-2018; (3) to the extent that the UK government will want to reinforce output growth through higher FDI inflows, a reduction of corporate taxation could generate high effects but could also stimulate a downward international corporate tax reduction game.

show abstract

“…This expectation has resulted in strong competition among countries to attract R&D-intensive FDI (Acemoglu et al 2006;Athukorala and Kohpaiboon 2010;Herrmann and Lipsey 2003). In particular, Bloom (2002) find that in OECD nations between 1979 and 1997 tax incentives increased R&D intensity.…”

Section: Previous Researchmentioning

confidence: 99%

Lowering the Marginal Corporate Tax Rate: Why the Debate?

Anguelov

2017

Economic Affairs

View full text Add to dashboard Cite

This paper as the co-winner of the 2015 second annual Amartya Sen Prize Competition given by the Global Justice Program at Yale University in partnership with Global Financial Integrity and Academics Stand Against Poverty http://globaljustice.macmillan.yale.edu/news/winners-second-amartya-sen-prizeannounced. Abstract:In an effort to attract new investors and retain existing producers, governments use corporate tax rates as a policy tool for industrial recruitment, resulting in interstate tax competition. FDI and GDP growth are the two policy outcomes gauged in interstate tax competition. The assumption is that lower corporate taxes lead to increase in FDI, which results in capital formation that creates GDP growth. This 60-nation panel study tests that assumption through examining economic indicators continent on taxation, such as FDI and MNC mergers and acquisitions between 1999 and 2009. The results suggest that reduced corporate tax rates can increase FDI but decrease annual GDP growth. The main policy implication is that tax competition may attract investment, but may not promote overall economic growth, offering support for value-extraction theories.

show abstract

Foreign Direct Investment in the Real and Financial Sector of Industrial Countries: A Summary

Cited by 22 publications

References 0 publications

International Technology Transfer measures in an interconnected world

International Technology Transfer measures in an interconnected world

BREXIT and Foreign Direct Investment: Key Issues and New Empirical Findings

Lowering the Marginal Corporate Tax Rate: Why the Debate?

Contact Info

Product

Resources

About