China’s Outward Foreign Direct Investment and Domestic Investment: An Industrial Level Analysis

In the past decade, China's outward foreign direct investment (FDI) has increased significantly. On the other hand, the Chinese economic growth model is heavily reliant on domestic investment. Our study examines the important issue of how China's domestic investment responds to its FDI outflows. We investigate this issue analyzing, for the first time, China's domestic investment at industrial level. We specifically account for the factor of government support given the significant role played by the state in the Chinese economy. Using industrial level data, we further evaluate whether domestic investment reacts to outward FDI differently between state dominated and non-state dominated industries. Our study adopts an accelerator model where the system-Generalized Method of Moments (GMM) is employed for our estimations. Our empirical results suggest that domestic investment responds positively to outward FDI in China, Furthermore, the FDI outflows influences domestic investment differently depending on the level of government support in the particular industries. Such influence is much stronger in state dominated industries than in the non-state dominated ones

Informality, Inequality and ICT in Transition economies

In this paper, we examine the role of the quality of institutional infrastructure and information and communication technology (ICT) in the relationship between the size of the informal sector (IS) and income inequality. Following our results, the sign of the relationship between IS and income inequality depends on the quality of institutions. When institutions are weak, agents invest less human capital and ICT in the formal sector (FS), thereby reducing income inequality. Utilizing panel data for sixteen transition countries we show that the relationship between the size of the IS and the level of income inequality is ambiguous. Our findings highlight the problem of measuring the relative size of the IS which is a hidden entity. We control for robustness of our findings using alternative proxies of ICT, human capital, and institutional quality and some interaction terms among these variables

Critical reflection : the development of a rubric for capture and assessment

A small-scale investigation was conducted with a group of postgraduate students taking an Economics module in which they were asked to record, electronically, their reflections of participating in an assessed group project. This paper is itself a reflection - a reflection on the experience of conducting that investigation, a chief outcome of which was the development of a set of grading criteria that may be useful for assessing the individual critical reflections that are common in groupwork assignments

A macroeconomic study of the impact of government policy on the informal sector in Nigeria

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Shadow Economy And Unemployment Rate In U.S.A. Is There A Structural Relationship? An Empirical Analysis.

International audienceThis paper aims to estimate the size of the U.S. shadow economy (SE) using a Structural Equation Approach and to evaluate if a structural relationship exists between the SE and the unemployment rate (UR) in the United States. The size of the SE is estimated to be decreasing over the last two decades. We corroborate the existence of a structural relationship between the shadow economy and the unemployment rate by using a simple theoretical model. Furthermore, we extend the Okun's law to estimate the structural relationship between growth rate of official GDP, SE and UR. Our results indicate a significant positive relationship between the SE and the UR

Shadow economy and unemployment rate in USA: is there a structural relationship? An empirical analysis

This article aims to estimate the size of the US shadow economy (SE) using a structural equation approach and to evaluate if a structural relationship exists between the SE and the unemployment rate (UR) in the United States. The size of the SE is estimated to be decreasing over the last two decades. We corroborate the existence of a structural relationship between the SE and the UR by using a simple theoretical model. Furthermore, we extend the Okun's law to estimate the structural relationship between growth rate of official GDP, SE and UR. Our results indicate a significant positive relationship between the SE and the UR.

The Differential Impact of Public and Private Governance Institutions on the Different Modes of Foreign Investment

This paper examines the respective impacts of public and private governance institutions on foreign direct and foreign portfolio investment inflows. We present two hypotheses: (1) there is a strong correlation between the quality of a country’s public governance institutions and the amount of FDI received while the quality of its private governance institutions has no further discernible impact on this correlation; (2) there is a strong correlation between the quality of a country’s public governance institutions and the amount of FPI received while the quality of its private governance institutions has a further positive impact on this correlation. Our findings, which are based on panel data analysis, show both hypotheses to be valid