a column by James Anderson, Mario Larch and Yoto Yotov for VOX: CEPR&rsquop;s Policy Portal
Foreign direct investment has traditionally been viewed as a key driver of prosperity, and modern FDI has also become a vehicle for transferring intangible assets.
This column uses a counterfactual experiment based on a hypothetical world with no outward or inward FDI to and from low-income and lower-middle-income countries to examine the effects of FDI on trade, domestic investment, and welfare. World welfare falls by about 6% and all countries lose out, with some poorer countries losing over 50%. World trade falls by 7%, with the losses again unevenly distributed.
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Showing posts with label FDI. Show all posts
Showing posts with label FDI. Show all posts
Monday, 5 August 2019
Friday, 21 June 2019
The return of the policy that shall not be named: Principles of industrial policy
a column by Reda Cherif and Fuad Hasanov for VOX: CEPR’s Policy Portal
The 'Asian miracles' and their industrial policies are often considered as statistical accidents that cannot be replicated.
The column argues that we can learn more about sustained growth from these miracles than from the large pool of failures, and that industrial policy is instrumental in achieving sustained growth. Successful policy uses state intervention for early entry into sophisticated sectors, strong export orientation, and fierce competition with strict accountability.
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The 'Asian miracles' and their industrial policies are often considered as statistical accidents that cannot be replicated.
The column argues that we can learn more about sustained growth from these miracles than from the large pool of failures, and that industrial policy is instrumental in achieving sustained growth. Successful policy uses state intervention for early entry into sophisticated sectors, strong export orientation, and fierce competition with strict accountability.
Continue reading
Thursday, 26 July 2018
There are more foreign firms than we think!
a column by Sara McGaughey and Pascalis Raimondos for VOX: CEPR’s Policy Portal
Researchers and policymakers often refer to ‘foreign firms’, but how do we define a firm as ‘foreign’ and does it matter for our policy conclusions?
This column argues due to the dominant practice of using only direct ownership links to identify the owners of a firm, the commonly used definition of a foreign firm captures only half of the foreign firms that exist. Indirect ownership link turns out to be pivotal for identifying firms that appear to be domestic but are in reality foreign, with implications for the measurement of FDI productivity spillovers.
Continue reading
Researchers and policymakers often refer to ‘foreign firms’, but how do we define a firm as ‘foreign’ and does it matter for our policy conclusions?
This column argues due to the dominant practice of using only direct ownership links to identify the owners of a firm, the commonly used definition of a foreign firm captures only half of the foreign firms that exist. Indirect ownership link turns out to be pivotal for identifying firms that appear to be domestic but are in reality foreign, with implications for the measurement of FDI productivity spillovers.
Continue reading
Wednesday, 25 April 2018
Barriers to trade in services have an impact on multinational production in the manufacturing sector
a column by Koen De Backer, Sébastien Miroudot and Davide Rigo for VOX: CEPR’s Policy Portal
Multinational enterprises that produce goods rely on services to organise their value chain, so barriers to investment in services are likely to affect their production.
The column uses a new and comprehensive OECD database to measure the share of services in the exports of multinational enterprises, and also in the output of their foreign affiliates. The results suggest that policymakers may need to focus more on the services that support manufacturing industries.
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I found the chart of “double counting” particularly interesting although I got lost in the statistical explanation.
Multinational enterprises that produce goods rely on services to organise their value chain, so barriers to investment in services are likely to affect their production.
The column uses a new and comprehensive OECD database to measure the share of services in the exports of multinational enterprises, and also in the output of their foreign affiliates. The results suggest that policymakers may need to focus more on the services that support manufacturing industries.
Continue reading
I found the chart of “double counting” particularly interesting although I got lost in the statistical explanation.
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