Investment creation and investment diversion: simulation analysis of the Single Market programme

Forslid, Rikard; Haaland, Jan I.; Smith, Alasdair

doi:10.1017/cbo9780511599101.009

Cited by 23 publications

(25 citation statements)

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“…In order to verify the reliability of the conclusion, we return to test Formula 1. The conclusion is in Table 1 (2), and this empirical results supports all above conclusion.…”

Section: National Data Empirical Results and Discussionsupporting

confidence: 84%

Analysis of the Effect of CEPA on FDI to Mainland China from Hong Kong

Wang¹

2016

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Regional economic integration has got great achievements both in practice and theory since 1980s, which promotes the progress of the world economic liberalization. Besides the trade creation and diversion effect which had been researched widely, regional economic integration agreement also would create investment among members, and this dynamic investment effect now has been the main factor which pushes the progress of integration. Based on DID model and Gravity Model, this paper examines the influence of CEPA on FDI to Mainland China from Hong Kong by setting matched group, using 1998-2013 FDI from Hong Kong as sample. The conclusion is that CEPA and its supplemental agreements play a positive role on attracting Hong Kong FDI to Mainland China. With the transformation of development model in Mainland China, Hong Kong will invest more capital in knowledge-intensive Service industries in the future.

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“…In order to verify the reliability of the conclusion, we return to test Formula 1. The conclusion is in Table 1 (2), and this empirical results supports all above conclusion.…”

Section: National Data Empirical Results and Discussionsupporting

confidence: 84%

Analysis of the Effect of CEPA on FDI to Mainland China from Hong Kong

Wang¹

2016

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“…This raises the question of whether these increases in incoming FDI affected the flows of direct investment going to other potential host countries that did not offer the advantage of belonging to the regional integration scheme concerned. Baldwin et al (1995) suggest that the creation of the Single Market in the EU "probably led to investment diversion in the economies of the European Free Trade Association (EFTA) and investment creation in the EU economies", the latter being particularly prevalent in Spain against which must be considered trade diversion, the potential decline in trade with non-members (if they are more efficient producers), which is detrimental to welfare. More recently, this body of theory has been extended to allow for imperfect competition and the presence of scale economies.…”

Section: Domino Fdi?mentioning

confidence: 99%

Economic Integration and FDI: An Empirical Analysis of Foreign Investment in the EU and in Central and Eastern Europe

Brenton¹,

1998

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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“…www.economics-ejournal.orgincluding Tarr (1996, 1997), Baldwin et al (1999) and Francois et al (1996). The approach, however, dates back to the 1970s, when both Hansen and Koopmans (1972) and Dantzig and Manne (1974) used it.…”

Section: Comparative Steady State Formulationmentioning

confidence: 99%

Deep Trade Policy Options for Armenia: The Importance of Trade Facilitation, Services and Standards Liberalization

Jensen

Tarr

2012

Economics

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In this paper the authors develop an innovative 21 sector computable general equilibrium model of Armenia to assess the impact on Armenia of a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, as well as further regional or multilateral trade policy commitments. They find that a DCFTA with the EU will likely result in substantial gains to Armenia, but they show that the gains derive from the deep aspects of the agreement. In order of importance, the sources of the gains are: (i) trade facilitation and reduction in border costs; (ii) services liberalization; and (iii) standards harmonization. A shallow agreement with the EU that focuses only on preferential tariff liberalization in goods will likely lead to small losses to Armenia primarily due to a loss of productivity from lost varieties of technologies from the Rest of the World region in manufactured products. Additional gains can be expected in the long run from an improvement in the investment climate. The authors estimate only small gains from a services agreement with the CIS countries, but significant gains from expanding services liberalization multilaterally.

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Investment creation and investment diversion: simulation analysis of the Single Market programme

Cited by 23 publications

References 0 publications

Analysis of the Effect of CEPA on FDI to Mainland China from Hong Kong

Analysis of the Effect of CEPA on FDI to Mainland China from Hong Kong

Economic Integration and FDI: An Empirical Analysis of Foreign Investment in the EU and in Central and Eastern Europe

Deep Trade Policy Options for Armenia: The Importance of Trade Facilitation, Services and Standards Liberalization

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