Foreign Direct Investment in Ireland: Policy Implications for Emerging Economies

The increasingly important role of multinational enterprises (MNEs) in the global economy is linked to questions of how the foreign direct investment (FDI) they control impacts on overall economic activity in the recipient countries. Of specific interest is the policy context in which such FDI flows into the developing country and how a government can influence the impact of those flows. This paper reviews some of the literature in two key contextual areas, namely, when the host country policy regime promotes FDI selectively, and secondly, where it promotes the creation of industrial clusters. It explores the insights of this literature for the development of the strong MNE sector in the Irish economy and draws lessons from the Irish experience for emerging economies.Note: Length:

A Simple and Flexible Dynamic Approach to Foreign Direct Investment Growth: The Canada-United States Relationship in the Context of Free Trade.

This paper asks a simple question: Did Wilfred Laurier’s dream of free trade with the United States, when it came to fruition in 1989, also impact on foreign direct investment (FDI) into Canada by US multinationals? This paper argues that the customary static econometric approach found in the FDI literature, along with the assumption that policy changes influence only the intercept term, are inadequate to address the question. Instead we introduce an innovative dynamic framework to support the testing of hypotheses on behavioural changes in the variables using a structural break framework. A key conclusion is that prior to signing the free trade agreement US FDI responded only to current growth in the Canadian economy, in a unitary fashion, and current exchange rate shifts. This can be described as a static relationship. The implementation of the free trade agreements between Canada and the USA increased the responsiveness of US FDI to growth in the Canadian economy by a factor greater than two. Furthermore, dynamics are found in the form of a lagged effect for changes in the growth in the Canadian economy and interest rate differentials. These conclusions challenge the dominant view, including that in official policy circles, that the free trade agreement had no impact on US firms’ FDI decisions in Canada. Note: Previous versions of this paper were entitled: “A Simple and Flexible Dynamic Approach to Foreign Direct Investment Growth: Did Canada Benefit From the Free Trade Agreements with the United States?”Canada-United States, foreign direct investment, empirical relationship

Motorcycle Safety Research Project: Interim Summary Report Research Deliverable 1: Investigate and Develop a Pre-Learner Motorcycle Licensing Package

Motorcycle trauma is a serious road safety issue in Queensland and throughout Australia. In 2009, Queensland Transport (later Transport and Main Roads or TMR) appointed CARRS-Q to provide a three-year program of Road Safety Research Services for Motorcycle Rider Safety. Funding for this research originated from the Motor Accident Insurance Commission. This program of research was undertaken to produce knowledge to assist TMR to improve motorcycle safety by further strengthening the licensing and training system to make learner riders safer by developing a pre-learner package (Deliverable 1 which is the focus of this report), and by evaluating the Q-Ride CAP program to ensure that it is maximally effective and contributes to the best possible training for new riders (Deliverable 2), which is the focus of this report. Deliverable 3 of the program identified potential new licensing components that will reduce the incidence of risky riding and improve higher-order cognitive skills in new riders. While fatality and injury rates for learner car drivers are typically lower than for those with intermediate licences, this pattern is not found for learner motorcycle riders. Learner riders cannot be supervised as effectively as learner car drivers and errors are more likely to result in injury for learner riders than learner drivers. It is therefore imperative to improve safety for learner riders. Deliverable 1 examines the potential for improving the motorcycle learner and licence scheme by introducing a pre-learner motorcycle licensing and training scheme within Queensland. The tasks undertaken for Deliverable 1 were a literature review, analysis of learner motorcyclist crash and licensing data, and the development of a potential pre-learner motorcycle rider program

Trust in international joint venture relationships

A great deal of attention has been paid to the performance of international joint ventures (IJVs) and trust has been recognised as a key factor influencing it. This paper examines the emergence of trust as a process and develops a process model of trust building in IJVs, which is used to analyse four case studies. The main conclusions are the following: Whereas competence-based trust starts from public information, promissory-based trust and goodwill-based trust are individually orientated and mainly develop through direct personal interaction. Such interaction may lead to bonds of friendship between delegates. Before these bonds evolve, trust is mainly based on the perceived self-interest of the partner in the joint venture. When the bonds of friendship dominate, the main source of trust shifts towards emotional commitments. Thus, in the early stages of an IJV, promissory-based trust predominates, and as the joint venture progresses, competence-based trust emerges. Goodwill-based trust is important throughout the process. A commitment to cooperate emerges from initial self-interest. The model is capable of further development and testing

Acute effects of an Avena sativa herb extract on responses to the Stroop Color-Word test

Background and aims: Extracts from oat (Avena sativa) herb may benefit cognitive performance. This study investigated whether Neuravena®, an oat herb extract, could acutely improve responses to the Stroop Color–Word test, a measure of attention and concentration and the ability to maintain task focus.  Subjects and methods: Elderly volunteers with below-average cognitive performance consumed single doses (0, 1600, and 2400 mg) of oat herb extract at weekly intervals in a double-blind, randomized, crossover comparison. Resting blood pressure (BP) was assessed before and after supplementation, and a Stroop test was performed.  Results: Significantly fewer errors were made during the color-naming component of the Stroop test after consuming the 1600-mg dose than after the 0-mg or 2400-mg doses (F (1,36)=18.85, p<0.001). In 7 subjects with suspected cognitive impairment, Stroop interference score was also improved by the 1600-mg dose compared to 0- and 2400-mg doses (F (1, 34)=2.40, p<0.01). Resting BP was unaffected by supplementation.  Conclusions: Taking 1600 mg of oat herb extract may acutely improve attention and concentration and the ability to maintain task focus in older adults with differing levels of cognitive status