Commerce international, investissements directs étrangers et participation des pays méditerranéens aux chaînes de valeur mondiales / sous la direction de Cécile Bastidon-Gilles … [et al.] ; préface de Saaïd Amzazi.
Journal of World Trade, published by Kluwer, is a bi-monthly peer-reviewed multidisciplinary journal dedicated to discussion of international trade law and practices. Aiming to support researchers, government officials, and trade negotiators, Journal of World Trade includes articles and analysis on a range of topics including regional integration, negotiation of trade agreements, trends in trade measures, and the ongoing evolution of the international trading system.
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20 years of the WTO : a retrospective / World Trade Organization.
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For Costa Rica, the Dominican Republic-Central America-free trade agreement (CAFTA-DR) has been more than a trade agreement. Costa Rica has used trade liberalization and promotion of international trade as a core development strategy for decades. CAFTA-DR consolidated benefits that had previously been unilaterally extended under the Caribbean Basin Initiative (CBI) into a multilateral FTA, providing a much more stable environment for trade relationships. Beyond just being a trade agreement, CAFTA-DR brought about the opening of state monopolies in telecommunications and insurance, which polarized the country. No other trade agreement has generated as much controversy as this one about the potential impacts on the economy. Following a referendum with a small margin in favor of the agreement, Costa Rica was the last member country to ratify CAFTA-DR in 2009. Given the controversy at the time, the current study takes stock of the early impacts of CAFTA-DR during the five years since its ratification, addresses the following questions: What actual changes did the agreement bring about and what was their context? What was the impact of those changes on trade and FDI flows? How have the high tech, insurance, telecommunications, and pharmaceutical sectors been impacted?
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This paper seeks to analyze the dynamic feedback between Foreign Direct Investment (FDI) and economic growth – larger FDI promotes higher GDP, while higher GDP can be achieved with higher levels of FDI. We use panels and a sample of 19 Latin American countries to estimate a dynamic FDI and a dynamic GDP equation that jointly characterize the evolution of both variables. We find that the dynamics of GDP and FDI are mostly driven by the expectations. Shocks of GDP or FDI were found to play no role affecting the dynamics.
This paper examines how wages in China are influenced by the interaction and co-location of firms across geographical space. Specifically, and with an emphasis on globally engaged firms and China’s uneven growth across regions we use a spatial econometric approach to estimate the direct and indirect impact of foreign-ownership and export participation on wages. Spatial Durbin Model results reveal an indirect effect of foreign-ownership and exporting on the compensation of workers in co-located firms as well as evidence in support of the standard direct effect that foreign firms, exporters, and firms with a highly educated workforce pay higher wages.
Firms learn general international management and foreign market specific knowledge in their internationalization process. Firms’ strategic emphasis on generalized vs. localized learning is an important yet underexplored issue in the extant literature. Drawing on the theoretical framework of dynamic capability, and in the context of emerging multinational enterprises’ FDI into developed host countries, this study examines the equifinal process–position–path configurations of firms that will motivate them to engage in localized learning (as opposed to generalized learning). Utilizing primary and secondary data of eleven Chinese foreign direct investments in Australia, collected at both headquarters and subsidiary levels, we conducted fuzzy-set qualitative comparative analysis (fsQCA) that provided substantial support to our propositions. This study contributes to the internationalization process model by identifying equifinal process–position–path configurations, as well as their core and peripheral conditions that motivate localized learning at both the headquarters and the subsidiary levels.
This paper presents a model of international trade and foreign direct investment (FDI), where FDI is comprised of greenfield FDI and mergers and acquisitions (M&A). In a monopolistically competitive environment merging firms do not reduce competition. Mergers are motivated by efficiency gains and transfer of technology. Following empirical evidence, greenfield investors are modeled as more productive than M&A firms, which are in turn more productive than exporters. The model has two symmetric countries and generates two-way flows of both M&A and greenfield FDI. Trade liberalization makes more firms choose greenfield FDI over M&A and leads to lower productivity and welfare.
We develop a method for estimating the rivalness of tax bases using the structures of the conditional logit, Poisson, and nested logit models. As an illustration, we apply this method to estimate the effect of state-level capital taxation on U.S. inward foreign direct investment (FDI). The assumption of perfect nonrivalness can in some cases be rejected, but the assumption of perfect rivalness cannot. Competition over FDI across U.S. states could well be a zero-sum game.
We argue that membership in specific international organizations (IOs) is an important determinant of foreign direct investment (FDI) inflows. To the extent that membership restricts a country from pursuing policies that are harmful to investors, it can signal reduced political risk. Using data over the 1971–2012 period, we find that membership in IOs does indeed increase inflows of FDI. We find this effect to be substantively important and robust to controlling for alternative determinants of FDI, to using different model specifications and to using an indicator of membership in regional rather than global IOs.
This paper analyzes why no foreign direct investment (FDI) has entered basic telecom services in China despite relaxed government policies after the World Trade Organization (WTO) accession in 2001. A new indicator of barriers to FDI incorporating the policy and non-policy impediments has been developed with multiple sources of data including a first-hand survey and interview. Analytic hierarchy process has been applied to reduce arbitrariness in assigning weight to each impeding factor. Results indicate that there is no significant reduction in the actual level of openness to FDI in the sector over the past decade of post-WTO period, which is largely attributable to the recessive non-policy factors. Policy implications are discussed.
This paper analyzes whether foreign direct investment (FDI) has contributed to the wide income gaps in Latin America. Panel cointegration techniques as well as regression analysis are performed to assess the impact of inward FDI stocks on income inequality among households in Latin American host countries. The panel cointegration analysis typically reveals a significant and positive effect on income inequality. There is no evidence for reverse causality. The findings are fairly robust to the choice of different estimation methods, sample selection and the period of observation.
Industrial competitiveness (IC) is a country’s ability to produce and export manufactured goods competitively. How does foreign direct investment (FDI) affect IC in China? The significance of the topic, besides the intrinsic importance of IC, is heightened by outstanding performance of the Chinese industry and massive increase in FDI flows into China in the past decade.
Patent rights (PRs) protection has acquired an important role in the new knowledge-based global economy, and it has been an essential policy issue for a number of years. Many previous papers have examined how PRs protection affects international trade, but there is lack of study on the relationship between PRs protection and foreign direct investment (FDI). According to the active FDI activities in Asia, this paper conducts a research from 1985 to 2010 to completely investigate the relationship between PRs protection and inward FDI in eleven main Asian countries by adopting Ordinary Least Square (OLS) and System Generalized Method of Moments (System GMM). The empirical results indicate that strengthening PRs protection in host countries can increase Asian countries’ FDI inflows. Moreover, different country characteristics might make distinctive influences on inward FDI.
The purpose of this study is to analyze the investment environment of Brazil’s northeast region, which has recently received a great deal of attention for its development potential. Suggestions are made for Korean companies that seek to expand investments and for the Korean government.
This study tries to find the causal relationship between bilateral trade and FDI in India and East Asian countries using macroeconomic data and derive policy implications for regional integration. Since the late 2000s, Korea, Japan and Singapore’s
trade and FDI with India have been rapidly increasing, but the causal relationship between trade and FDI could not be found, contrary to expectations. The relationship between trade and FDI in the US, the UK and Germany with India showed one-way or two-way causality, respectively. The estimation suggests that the causal relationship between trade and FDI in both countries could be formed by long-term economic exchange rather than a short-term surge in scale.
The relationship between foreign direct investment (FDI), trade openness and economic growth in host countries remains one of the most important issues in the economic literature and met with renewed interest in recent years mainly for countries suffering from unemployment problems and lack of technological progress. This paper examines this issue for Tunisia by applying the bounds testing (ARDL) approach to cointegration for the period from 1970 to 2008. The bounds tests suggest that the variables of interest are bound together in the long run when foreign direct investment is the dependent variable. The associated equilibrium correction is also significant, confirming the existence of a long-run relationship. The results also indicate that there is no significant Granger causality from FDI to economic growth, from economic growth to FDI, from trade to economic growth and from economic growth to trade in the short run. Even though there is a widespread belief that FDI can generate positive spillover externalities for the host country, our empirical results fail to confirm this belief for the case of Tunisia. They go against the generally accepted idea considering the positive impact of FDI on economic growth to be automatic. The results found for Tunisia can be generalized and compared to other developing countries which share a common experience in attracting FDI and trade liberalization.