MBA Thesis Accounting Finance Tourism MarketingEconomics,Ecommerce Education Journalism and Mass Communicat Law sociology Engineering linguistic
返回首页

澳洲留学生经济学专业毕业论文需求:Foreign di

Foreign direct investment and macroeconomic risk
Yothin JinjaraDivision of Economics, Nanyang Technological University (NTU), S3-B2A-06, Singapore 639798
Received 16 January 2007; revised 10 May 2007
澳洲留学生论文Available online 23 May 2007
Jinjarak, Yothin—Foreign direct investment and macroeconomic risk
Motivated by the macroeconomic fluctuations and policy regime switches frequently observed in developingcountries, this paper provides cross country-industry evidence on the links between a host country’smacro risks and foreign direct investment (FDI) activities. For each industry I measure vertical FDI share asa ratio of exports to a parent country relative to local sales by foreign affiliates. Using a panel sample from1989 to 1999, I find that FDI activities of US multinationals in industries with higher share of vertical FDIrespond disproportionately more to negative effects of macro-level demand, supply, and sovereign risks.However, when institutional quality and total FDI share of the host country are sufficiently low, the meritsof cross-industry vertical versus horizontal FDI in response to macro risks disappear. Journal of Comparative
Economics 35 (3) (2007) 509–519. Division of Economics, Nanyang Technological University (NTU),
S3-B2A-06, Singapore 639798.
© 2007 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.
JEL classification: E32; F21; F23; F40; L16; P51
Keywords: Horizontal and vertical FDI; Institutions; Macroeconomic volatility; Multinationals
1. Overview
What is the main driving force of foreign direct investment (FDI)? This paper adds to a series
of literatures studying the association between institutions, macroeconomic risks, and FDI.1
* Fax: +65 67946303.
E-mail address: YJinjarak@ntu.edu.sg.
1 Another strand of literature focuses on static conditions under which vertical FDI is more efficient than horizontaFDI. There, vertical FDI arises when a multinational firm fragments its production process internationally, locating eachstage of the production in the host country where it can be done at the least cost. Hummels et al. (2001) and Yi (2003)0147-5967/$ – see front matter © 2007 Association for Comparative Economic Studies. Published by Elsevier Inc. All
rights reserved.doi:10.1016/j.jce.2007.05.002Y. Jinjarak / Journal of Comparative Economics 35 (2007) 509–519 511
vertical FDI is applicable to all affiliates operating abroad for each industry.3 The dissimilarityacross industries is apparent: a ratio of exports back to US relative to local sales by foreignaffiliates of industries below the 25th percentile (Utilities, Information, Food, Services) is, onaverage, 44 percent smaller than that of industries above the 75th percentile (Mining, IndustrialMachinery, Transportation Equipment, and Computer Products). In the next section, I investigate



------分隔线----------------------------
UK Thesis Base Contacts

24小时在线客服

QQ:77276002

Email:77276002@qq.com

推荐内容