Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico

Fonseca, Felipe J.; Llamosas-Rosas, Irving

doi:10.1007/s00168-019-00895-1

Cited by 13 publications

(12 citation statements)

References 35 publications

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“…When foreign investments are made in several regions, agglomeration benefits can be reaped as a result of alleviating information asymmetry, reducing information costs, and improving market access (Chen, 2009; He, 2002; Mariotti et al, 2010). Recent studies in spatial econometrics account for the effects of neighboring regions or spatial dependence on the location decision of FDI, especially within manufacturing industries (Blanco, 2012; Fonseca and Llamosas-Rosas, 2019; Siddiqui and Iqbal, 2018). Few studies, however, investigate whether spatial dependence is also one of the locational determinants of FDI in service sectors such as real estate.…”

Section: Methodology and Datamentioning

confidence: 99%

The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

Bennett

Jiang

2022

Environ Plan A

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Since the 2010s, foreign direct investment in real estate (FDIRE) by Mainland Chinese firms has emerged as a major force within global real estate markets, challenging Western investors’ traditional dominance. It is unclear, however, whether Mainland Chinese FDIRE is fueled by the same motivations as those of investors from advanced economies, which to date have represented both the primary investors and main objects of study. One major difference may be that Mainland Chinese investment originates in an institutional environment comprised of strong state intervention and social networks important for fostering business and ethnic ties. To uncover the potentially unique determinants and heterogeneity of Mainland Chinese corporate real estate investors, we build and analyze a state-level panel dataset of Mainland Chinese FDIRE by state-owned enterprises and private enterprises in the U.S. from 2010 to 2017. Our empirical results reveal the importance of Chinese migrants in promoting Mainland Chinese real estate investment, especially by private enterprises. Our findings also demonstrate that at the state level, Mainland Chinese FDIRE exhibits few agglomerative tendencies.

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Section: Methodology and Datamentioning

confidence: 99%

The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

Bennett

Jiang

2022

Environ Plan A

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“…Since the beginning of this century, the new extensions of the theory of trade and multinational firms, such as the theory of export platform FDI [43,44] and the theory of complex vertical FDI [45,46], along with the development of spatial econometric tools in FDI studies have led to consider the role of the geographical component on the determinants of FDI location decisions. Accordingly, several empirical studies have incorporated spatial dependence as an important FDI driver [12,13,[46][47][48][49], taking account of two forms of spatial interdependences: Surrounding market potential (related to the size of markets close to the host country and measured by the weighted GDP of neighboring markets) and FDI spillovers (referred to as the capital inflows to neighboring countries and measured by the weighted FDI in neighboring countries). FDI flows in a given country could then depend not only on its domestic conditions, but also on those of its neighboring countries, including their FDI inflows [12,13].…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Do Countries with Similar Levels of Corruption Compete to Attract Foreign Investment? Evidence Using World Panel Data

et al. 2020

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This paper examines whether foreign direct investment in one country helps to increase foreign investment in other countries with a similar degree of corruption. Our estimates are based on an unbalanced annual panel of 164 countries over the 2005–2015 period. Using spatial econometric techniques, our main findings reveal that foreign investment in one recipient country is complementary to that in countries with similar levels of corruption. Furthermore, our results point to the existence of different circuits of foreign direct capital among countries that are determined by corruption similarity. These results suggest important policy implications for countries aiming to attract foreign investment.

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“…Thus, for example, it cannot be precisely determined to what extent a company from a more productive country will affect a company based in a country with a lower labour productivity. The so-called third-country (region) effect (Fonseca & Liamosas-Rosas, 2019) is not taken into account. 3.…”

Section: Economicsmentioning

confidence: 99%

“…It also shows which regions are able to benefi t from the presence of FDI in their territory. For as Fonseca and Liamosas-Rosas (2019) and Jordaan (2008) agree, understanding of the determinants of FDI helps to modify future public strategies toward regional development.…”

Section: Financementioning

confidence: 99%

Potential of the Czech business environment assumes the effects of foreign direct investment

Kotíková¹

2019

E+M

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The localisation of foreign capital affecting both the immediate and future situation of the host locality in a number of ways. The positive effects of the location of FDI are welcomed all over the world, and their emergence is supported by the granting of investment incentives. The question is how to correctly measure these effects, but also the potential of specifi c areas to accept them. The aim of this contribution is to determine the size of the technology gap between FDI supported by investment incentives and the business environments in a group of six regions of the Czech Republic as well as to determine the absorption capacity of the technology transfer of these regions. Based on shift-share analyses, an indicator quantifying the size of the technology gap at the regional level of NUTS 3 has been constructed. This indicator has been supplemented by an indicator of technology transfer intensity. The benchmarking method illustrates the absorption capacity of the Czech business environment in an interregional comparison refl ecting the strong and weak sides of the Czech regions in terms of absorbing the benefi ts of locating multinational corporations in their territories. The calculations and analyses have proved the leading position of the Plzeň Region, which takes advantage of its geographical position as well as its historical industrial tradition. At the same time, the high absorption capacity of the Hradec Králové Region, a region with a high potential for intensive growth, has been identifi ed. On the other hand, the Karlovy Vary Region has been an outsider in the examined set of regions. In the long run, this region has not been and will not be able to attract at least a satisfactory level of foreign presence from which the region could positively benefi t and start its economic growth.

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Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico

Cited by 13 publications

References 35 publications

The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

Do Countries with Similar Levels of Corruption Compete to Attract Foreign Investment? Evidence Using World Panel Data

Potential of the Czech business environment assumes the effects of foreign direct investment

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