FDI, Multinationals, and Structural Change in Developing Countries

Pineli, André; Narula, Rajneesh; Belderbos, René

doi:10.1093/oso/9780198850113.003.0021

Cited by 11 publications

(6 citation statements)

References 83 publications

(112 reference statements)

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“…X it is a control variable which includes the following: Foreign direct investment (FDI) uses net inflows of foreign direct investment (current dollars), and FDI can lower market entry barriers in host countries [38]. Capital (CAP) calculates gross capital formation in local currency units using constant prices.…”

Section: Empirical Modelmentioning

confidence: 99%

The Impact of Institutional Friction Cost on Economic Growth: Evidence from OECD Countries

Zhou

Xing

et al. 2022

Sustainability

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The institutional environment is critical to economic growth. A favorable business environment can reduce unnecessary transaction costs. This study examined the impact of institutional friction costs on economic growth, based on panel data for 38 OECD countries from 2004 to 2020. The contribution of this paper is that, first, we explore methods to measure the cost of institutional friction, and the measurements show that the total cost of institutional friction tends to be lower in high-income countries than in upper-middle-income countries. Second, we find that reducing the cost of institutional friction helps to promote economic growth through an empirical fixed-effects analysis approach with panel data. The empirical results remain significant after robustness and endogeneity tests. Third, we find that the effect of institutional friction costs on economic growth is more pronounced in high-income countries and even more pronounced in countries with inefficient governments. Fourth, the mediation effect test finds that institutional friction costs affect economic growth by increasing firm innovation. Overall, reducing the costs of institutional friction helps promote economic growth, and this study suggests that policy makers in each country should develop measures to reduce the costs of institutional friction to improve efficiency and economic development.

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Section: Empirical Modelmentioning

confidence: 99%

The Impact of Institutional Friction Cost on Economic Growth: Evidence from OECD Countries

Zhou

Xing

et al. 2022

Sustainability

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“…Revista de Historia Económica / Journal of Iberian and Latin American Economic History de factores productivos, en particular del capital físico y humano, y al incremento de sus niveles de productividad, determinados por el cambio tecnológico y organizativo 3 . En suma, existen trayectorias de cambio estructural y de modernización productiva de referencia, consistentes con experiencias históricas de desarrollo (Pineli, Narula y Belderbos 2019;Narula, 2018).…”

Section: Trayectorias De Modernización Industrial Y Cambio Estructuralunclassified

Trayectorias De Modernización Industrial Y Cambio Estructural en América Latina, 1970–2017

López¹

2021

RHE / JILAEH

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RESUMEN Este artículo analiza las trayectorias de modernización estructural para la industria de ocho países latinoamericanos (Bolivia, Brasil, Colombia, Costa Rica, Ecuador, México, Perú, Uruguay) desde 1970 hasta la fecha. Desde una perspectiva teórica estructuralista que explora las interacciones dinámicas entre el cambio estructural y el escalamiento tecnológico, se construye un índice de modernización. Los hallazgos muestran que el establecimiento de modelos económicos neoliberales en Latinoamérica a partir de los años ochenta, significó un punto de ruptura en estas trayectorias. Mientras la racionalización de procesos productivos por parte de las empresas implicó un desplazamiento del empleo en dirección de usos de baja productividad relativa, el desarrollo de industrias intensivas en capital e insertas en dinámicas globales, no impulsó la modernización estructural debido a la naturaleza de las tareas efectuadas. Los ejercicios permiten esbozar una primera tipología en términos de las carencias más apremiantes de cada caso.

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“…Although many studies have investigated the impact of FDI on host economies, fewer studies investigate the relationship between FDI and GDP growth [for a review, see Narula andPineli (2017, 2019)]. There are fewer studies that examine the co-evolution between FDI and economic structure, with Pineli et al (2021) and Pineli (2022) being two recent attempts to advance the literature on FDI and structural change, but in general such analyses require data that is not usually available.…”

Section: Introductionmentioning

confidence: 99%

Industrial policy matters: the co-evolution of economic structure, trade, and FDI in Brazil and Mexico, 2000–2015

Pineli

Narula

2023

J. Ind. Bus. Econ.

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The early work by Kuznets and Chenery originally developed the theme that economic development was not simply a synonym for aggregate GDP growth, but entailed qualitative changes in the structures of production, employment, and consumption. Later work in international business and economics explored the co-evolution between FDI and economic structure. We investigate the co-evolution between FDI, economic structure and export structures in the two largest Latin American economies, Brazil and Mexico, over the period 2000–2015. Both initially followed similar development strategies during the import-substitution era. During the liberalization era they followed somewhat different strategies towards maintaining the competitiveness of domestic actors. In addition to the analysis of key indicators, we discuss the role played by industrial policies—or their absence—within Brazil’s and Mexico’s development strategies. Industrial policy instruments, such as infant industry protection, subsidies, tax and financial incentives, as well as performance requirements may be crucial to shift the economic structure in the direction of the desired industries. Tracing the co-evolution between FDI and economic structures, even in the absence of statistical rigour to support causal claims, provides interesting insights for industrial policy in the twenty-first century.

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FDI, Multinationals, and Structural Change in Developing Countries

Cited by 11 publications

References 83 publications

The Impact of Institutional Friction Cost on Economic Growth: Evidence from OECD Countries

The Impact of Institutional Friction Cost on Economic Growth: Evidence from OECD Countries

Trayectorias De Modernización Industrial Y Cambio Estructural en América Latina, 1970–2017

Industrial policy matters: the co-evolution of economic structure, trade, and FDI in Brazil and Mexico, 2000–2015

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