Domestic institutions, agglomerations and foreign direct investment in Europe

Barrell, Ray; Pain, Nigel

doi:10.1016/s0014-2921(98)00105-6

Cited by 211 publications

(124 citation statements)

References 10 publications

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“…As for demand risk generated by the volatility of real exchange rates, a risk considered relatively easy to fix, choosing an exchange rate regime as a policy prescription to eliminate it may actually miss the target and is likely to be of second order importance to the development of good fiscal, financial, and monetary institutions (Calvo and Mishkin, 2003). At a broader level, we can consider the findings in this paper as a first attempt at understanding the role of policy coordination as countries try to attract new investments and extract benefits from market potential (Barrell and Pain, 1999; Notes. Differential FDI Activity measures in percentage how much larger an industry above the 75th percentile level of vertical FDI share responds negatively with respect to an industry below a 25th percentile level when it faces a one standard deviation change of macro-level risks.…”

Section: Discussionmentioning

confidence: 95%

Foreign direct investment and macroeconomic risk

Jinjarak

2007

Journal of Comparative Economics

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Jinjarak, Yothin-Foreign direct investment and macroeconomic riskMotivated by the macroeconomic fluctuations and policy regime switches frequently observed in developing countries, this paper provides cross country-industry evidence on the links between a host country's macro risks and foreign direct investment (FDI) activities. For each industry I measure vertical FDI share as a ratio of exports to a parent country relative to local sales by foreign affiliates. Using a panel sample from 1989 to 1999, I find that FDI activities of US multinationals in industries with higher share of vertical FDI respond 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 merits of cross-industry vertical versus horizontal FDI in response to macro risks disappear.

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Section: Discussionmentioning

confidence: 95%

Foreign direct investment and macroeconomic risk

Jinjarak

2007

Journal of Comparative Economics

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“…Learning from foreign ventures can be an important channel of technology transfer to incubators and incubatees. Indeed, a number of empirical studies have been conducted regarding knowledge spillovers from foreign ventures to domestic firms in general (e.g., Aitken and Harrison 1999;Barrel and Pain 1999;Saggi 2002;Keller 2004;Javorcik 2004), and to those in China in particular (Chen, Chang, and Zhang 1995;Todo, Zhang, and Zhou 2009;Ran, Voon, and Li 2007;Hu 2007). In view of this substantial body of literature, knowledge spillovers from foreign ventures to STBIs are worthy of consideration.…”

Section: Factors Contributing To the Good Performance Of Stbismentioning

confidence: 99%

Business Incubators in China: An Inquiry into the Variables Associated with Incubatee Success

Zhang

Sonobe

2011

Economics

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This paper examines the association between the outcome of business incubation and the resources used by incubators, by using a small panel of science and technology business incubators (STBIs) in China. We find that while the number of firms graduating from an STBI is closely correlated with the infrastructure as well as the human and financial resources at the STBI's disposal, the graduates' firm sizes, in terms of employment and value added, as well as their labor productivity are unrelated to such resource inputs. We also find that the educational levels of incubator managers and the financial support given to their clients have significant impacts on the number of graduates. However, the number of graduates does not increase with the scale and diversity of the cities in which their STBIs are located or with the presence of foreign ventures and universities in the locality. We do not find that universitybased and government-established STBIs differ significantly in their incubation performance. JEL M13, O31, O32, O38

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“…As part of location advantages, market size variables are consistent with Dunning's (1993) typology of FDI motivations. The direct relationships between a country's market size and FDI is the most widely tested hypothesis in previous studies of FDI determinants (Barrell & Pain, 1999, Barrell & Pain, 1997, Bevan, Estrin, & Meyer, 2004, Culem, 1988, Wheeler & Mody, 1992. Market seeking investors are attracted by high levels of GDP of the host country.…”

Section: Control Variables-market Size Variablesmentioning

confidence: 99%