Foreign Direct Investment and its Determinants in the Chilean Case: Unit Roots, Structural Breaks, and Cointegration Analysis.

This paper examines the major economic and institutional factors underlying the surge in foreign direct investment (FDI) flows to Chile during recent decades. It presents econometric evidence for the 1960-2003 period which indicates that market-based economic reforms and major changes in the institutional-legal status of foreign capital are, in large measure, responsible for the rapid increase in FDI inflows to leading sectors of the Chilean economy. Single break unit root and cointegration analysis suggest that market size, the real exchange rate, the debtservice ratio, the secondary enrollment ratio, physical infrastructure, and institutional reforms such as the elimination of restrictions on profit and dividend remittances and the implementation of a selective debt conversion program are economically significant in explaining the variation in FDI inflows to the country. The paper also addresses the long-term negative effects which rapidly growing profit and dividend remittances may have on the financing of capital formation and the Chilean balance of payments.Akaike Information Criterion (AIC), Chilean economy, cointegration analysis, error correction model, FDI flows, Granger causality test, Johansen and Juselius test, remittances of profits and dividends, Structural breaks and unit roots, Theil inequality coefficient, Zivot and Andrews one-break unit root test

Formulations of the 3+1 evolution equations in curvilinear coordinates

Following Brown, in this paper we give an overview of how to modify standard hyperbolic formulations of the 3+1 evolution equations of General Relativity in such a way that all auxiliary quantities are true tensors, thus allowing for these formulations to be used with curvilinear sets of coordinates such as spherical or cylindrical coordinates. After considering the general case for both the Nagy-Ortiz-Reula (NOR) and the Baumgarte-Shapiro-Shibata-Nakamura (BSSN) formulations, we specialize to the case of spherical symmetry and also discuss the issue of regularity at the origin. Finally, we show some numerical examples of the modified BSSN formulation at work in spherical symmetry.Comment: 19 pages, 12 figure

Precession and Recession of the Rock'n'roller

We study the dynamics of a spherical rigid body that rocks and rolls on a plane under the effect of gravity. The distribution of mass is non-uniform and the centre of mass does not coincide with the geometric centre. The symmetric case, with moments of inertia I_1=I_2, is integrable and the motion is completely regular. Three known conservation laws are the total energy E, Jellett's quantity Q_J and Routh's quantity Q_R. When the inertial symmetry I_1=I_2 is broken, even slightly, the character of the solutions is profoundly changed and new types of motion become possible. We derive the equations governing the general motion and present analytical and numerical evidence of the recession, or reversal of precession, that has been observed in physical experiments. We present an analysis of recession in terms of critical lines dividing the (Q_R,Q_J) plane into four dynamically disjoint zones. We prove that recession implies the lack of conservation of Jellett's and Routh's quantities, by identifying individual reversals as crossings of the orbit (Q_R(t),Q_J(t)) through the critical lines. Consequently, a method is found to produce a large number of initial conditions so that the system will exhibit recession

Economic and Institutional Determinants of FDI Flows to Latin America: A Panel Study

This paper estimates a pooled (fixed-effects) FDI investment function that seeks to identify some of the major economic and institutional determinants of FDI flows to nine major Latin American countries during the 1980-2001 period. First, it develops a conceptual framework of analysis that seeks to identify some of the major economic and institutional determinants of FDI. Second, the paper gives an overview of FDI flows to Latin America during the 1990-2006 period, with particular emphasis on their contribution to the financing of gross capital formation. Third, an empirical model for FDI flows to Latin America is outlined and an economic rationale is provided for the included variables and their expected signs. Fourth, the estimates from a panel regression designed to explain the variation in FDI flows to Latin America during the 1980-2001 period suggests that market size (proxied by real GDP), credit provided by the private banking sector, government expenditures on education, the real exchange rate, and the level of economic freedom have a positive and significant effect. On the other hand, public investment spending, the debt-service ratio, and the volatility of the real exchange rate have a negative and significant effect on FDI flows. The panel unit root tests on the residuals of the relevant panel regressions also suggest that there is a stable, long-term relationship among the included variables; i.e., the selected variables in the reported regressions are cointegrated over the relevant time period. Finally, the paper summarizes the major findings and offers some policy prescriptions for attracting FDI flows to the region and enhancing their positive direct and indirect effectsADF Fisher statistic. Economic Freedom Index (EFI), Foreign Direct Investment (FDI), Latin America, Panel Unit Root Tests, Pedroni Residual Cointegration Test, Pooled Regression, and Seemingly Unrelated Regression (SUR)

Marx, Globalization, and the Falling Rate of Profit: A Critical Study.

This paper argues that Marx’s views on globalization and its supposed inevitability underwent a substantial evolution and revision after the publication of the Communist Manifesto. His writings relating to India, and particularly China and Russia, show that he was no longer certain that “the country that is more developed industrially only shows, to the less developed, the image of its own future” (Vol. I, p. 13). In the case of China, a prime example of the Asiatic mode of production, Marx even doubted whether globalization (capitalism) would ever be able to accomplish its historical mission of developing the forces of production and creating the material conditions for a higher mode of production, viz., Communism. While in the Russian case, he seriously entertained the notion that it could bypass the hardships and vicissitudes of capitalism and forge its own unique path to socialism. If accepted, this interpretation represents a serious challenge to the universality and validity of Marx’s materialist conception of history. The paper also addresses the role of the law of the tendency of the falling rate of profit in the geographic expansion of competitive capitalism. It contends that Marx did not believe there was an iron-clad connection between the falling rate of profit and globalization; in addition, it argues that Marx believed that the capitalists’ insatiable search for colonial markets was driven by their desire to overcome recurrent (and growing) realization problems in the home market arising from deficient aggregate demand on the part of both workers and capitalists.Asiatic Mode of Production, Globalization, Law of the Falling Tendency of the Rate of Profit, Materialist Conception of History, Underconsumptionist Tendencies.