Essay On Fdi In Marathi Recipe
Ali, Fathi A. Ahmed (2010) Essays on foreign direct investment, institutions, and economic growth. PhD thesis, University of Glasgow.Full text available as:
Printed Thesis Information: http://encore.lib.gla.ac.uk/iii/encore/record/C__Rb2749051
The aim of this thesis is to explore and study various dimensions of the interaction between one of the most important institutional quality aspects, namely property rights, and one important aspect of integration into the world economy: foreign direct investment (FDI), and links them to economic growth. In particular, this thesis explores whether the interaction between institutions and FDI has any implication for economic growth and whether there is any complementarity between the role of institutions and the role of FDI in fostering economic growth. To achieve this aim, the thesis was designed to include four empirical chapters in addition to two chapters: one for the introduction and the other for the conclusion. The first two empirical chapters studied the interrelationship between FDI and institutions. And the other two empirical chapters studied the implication of the interrelationship and the complementarity between FDI and institutions for economic growth. Chapter one motivated the thesis and set its aim and structure. The second chapter studies the role of institutions in determining FDI inflows and shows that institutional quality is one of the most important determinants of FDI. Based on this result, chapter three introduces a hypothesis that foreign investors will create a demand for better institutions in host countries, and that governments competing to attract more FDI will be induced to provide such institutions, leading to improvements in institutional quality in host countries. The empirical evidence reported in this chapter supports this hypothesis and shows that FDI inflows have a positive impact on property rights in host countries. Chapter four explores whether institutions play a role in determining the contribution of FDI to economic growth. The results presented in this chapter show that a host country needs to achieve a minimum level of institutional quality in order to be able to benefit from the positive externalities offered by FDI. Based on the results of chapter three, chapter five investigates whether the positive impact of FDI in institutional quality on host countries can be considered as a new growth-enhancing role for FDI. The results reported in chapter five show that the impact of FDI on economic growth that works via institutions, is a significant one, and is generally greater and more robust than the direct impact. Over all, the major contribution of this thesis is that it shows that a better understanding of the contribution of FDI to economic growth requires taking into account the interrelationship and the complementarity between FDI and institutions.
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TitleEssays on the determinants of foreign direct investment and its impact on home countries
NameTang, Jitao (author); Altshuler, Rosanne (chair); sigman, hilary (internal member); Hochman, Gal (internal member); Goodspeed, Timothy (outside member); Rutgers University; Graduate School - New Brunswick
Other Date2013-10 (degree)
SubjectEconomics, Investments, Foreign, International business enterprises
Extentix, 144 p. : ill.
DescriptionBoth policy makers and policy analysts are interested in the extent to which host country policies influences foreign direct investment (FDI). While much work has focused on the impact of government policies on aggregate FDI, little attention has been paid to the possibility that different types of FDI may respond differently to changes in policies. In this dissertation, I investigate whether local policies affect distinct types of FDI in different ways. In addition, I also study whether the FDI undertaken by multinational enterprises (MNEs) generates spillovers to their home countries. In the first chapter, I test the effect of environmental policies in host countries on horizontal, vertical and export-platform FDI. In a simple model I show how different types of FDI respond to a stricter environmental policy. Using U.S. outward FDI in 50 host countries and a survey measure of local environmental regulations, I find a significant deterrent effect of environmental regulations on horizontal and export-platform FDI. Furthermore, I find that in host countries with stricter environmental regulations than U.S. regulations, export-platform FDI exhibits a greater sensitivity to local environmental regulations than horizontal FDI. I extend the analysis in the first chapter to the effect of local corporate tax rates in the second chapter. The empirical evidence suggests that the effect of statutory corporate income tax rates is negative and significant on vertical and export-platform FDI but insignificant on horizontal FDI. The tax effect is found to have grown stronger over time. More importantly, I find that different types of FDI respond in distinct ways to variation in tax rates across "third" countries | all other countries beside the actual host country of FDI. In the third chapter, I investigate the spillovers generated by MNEs when they invest abroad to domestic firms using rm level information from Standard and Poor's Compustat data. Similar to most previous studies on host country spillovers, only spillovers from MNEs to their suppliers are found to be significant. Moreover, the realization of positive spillovers depends on a few rm characteristics, including exporting status, size and absorptive capacity.
NoteIncludes bibliographical references
Noteby Jitao Tang
CollectionGraduate School - New Brunswick Electronic Theses and Dissertations
Organization NameRutgers, The State University of New Jersey
RightsThe author owns the copyright to this work.