Examining the Regional Aspect of Foreign Direct Investment to Developing Countries

This paper applies a general-to-specific analysis to detect regularities in the driving forces of foreign direct investment (FDI) that can explain why some regions are more attractive to foreign investors than others. The results suggest that regional differences in FDI inflows to African, Asian and Latin American countries can be fully explained by structural characteristics rather than fixed regional effects. The implication of this finding is that countries that are lagging behind other developing countries in attracting foreign capital have the opportunity to implement policies aimed at improving the investment climate for foreign investors. This also means that there is no African bias. Among a large number of return and risk variables applied in the empirical literature, growth and inflation turn out to be the only robust and significant FDI determinants across regions although the size of their impact varies.foreign direct investment; Africa, Asia; Latin America; general-to-specifc

A Mean-Variance Explanation of FDI Flows to Developing Countries

An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from one country to another. This will have implications for the way investors evaluate the return and risk of investing abroad. This paper utilises a simple mean-variance optimisation framework where global and regonal factors capture the interdependence between countries. The model implies that FDI is driven by the risk-adjusted rate of return as well as global and regional spillovers. The preditions of the model are con…rmed in a sample of 60 countries over the period 1970-2000.foreign direct investment, risk, portfolio, business cycles

Measuring Idiosyncratic Risk: Implications for Capital Flows

This paper offers two refinements of the traditional risk measure based on the volatility of growth. First, we condition GDP growth on structural characteristics of the host country that move only slowly and therefore can be partly predicted by an investor. Second, we adjust conditional risk for the systematic components due to the global and regional interdependence between alternative investment locations. The decomposition of conditional risk into its systematic and idiosyncratic components reveals that not only are African countries on average characterised by a larger conditional risk than Asian and Latin American countries, but the idiosyncratic risk factor also represents a larger share than in other developing countries. As a final contribution, we search the empirical literature on foreign direct investment and risk in order to determine which of the suggested risk measures provide the best description of idiosyncratic risk. Using a general-to-specific methodology, we find that both economic and political risk factors are important elements in the investment decision. We also find that commercial risk factors applied in the literature so far are poor determinants of idiosyncratic risk.foreign direct investment; global and regional business cycles; risk decomposition

Does Foreign Aid Increase Foreign Direct Investment?

The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and internationalcooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show that the theoretical relationship between foreign aid and FDI is indeterminate. Aid may raise the marginal productivity of capital by financing complementary inputs, such as public infrastructure projects and human capital investment. However, aid may also crowd out productive private investments if it comes in the shape of physical capital transfers. We therefore turn to an empirical analysis of the relationship between FDI and disaggregated aid flows. Our results strongly support the hypotheses that aid invested in complementary inputs draws in foreign capital while aid invested in physical capital crowds out FDI. The combined effect of these two types of aid is small but on average positive.foreign aid; foreign direct investment (FDI); open economy Solow model

Further Results on Partial Order Equivalences on Infinite Systems

In [26], we investigated decidability issues for standard language equivalence for process description languages with two generalisations based on traditional approachesfor capturing non-interleaving behaviour: pomset equivalence reflecting global causal dependency, and location equivalence reflecting spatial distribution of events. In this paper, we continue by investigating the role played by TCSP-style renaming and hiding combinators with respect to decidability. One result of [26] was that in contrast to pomset equivalence, location equivalence remained decidable for a class of processes consisting of finite sets of BPP processes communicating in a TCSP manner. Here, we show that location equivalence becomes undecidable when either renaming or hiding is added to this class of processes. Furthermore, we investigate the weak versions of location and pomset equivalences.We show that for BPP with prefixing, both weak pomset and weak location equivalence are decidable. Moreover, we show that weak location equivalence is undecidable for BPP semantically extended with CCS communication

Primer registro de Thalassiosira catharinensis (Bacillariophyta) en aguas costeras marinas argentinas

Several ultrastructural analyses of taxa belonging to the genus Thalassiosira from Argentinean coastal waters were carried out, nevertheless, the smaller fraction of the nanoplanktonic Thalassiosira was frequently overlooked. The aim of this study is to show the morphological variation of T. catharinensis, to compare material found in marine coastal waters of Anegada Bay, Province of Buenos Aires, with the material analyzed in the protologue and allied taxa, and to record the species for the first time in Argentina, extending its distribution.Several ultrastructural analyses of taxa belonging to the genus Thalassiosira from Argentinean coastal waters were carried out, nevertheless, the smaller fraction of the nanoplanktonic Thalassiosira was frequently overlooked. The aim of this study is to show the morphological variation of T. catharinensis, to compare material found in marine coastal waters of Anegada Bay, Province of Buenos Aires, with the material analyzed in the protologue and allied taxa, and to record the species for the first time in Argentina, extending its distribution.Fil: Lavigne, Andrea Susana. Universidad Nacional de La Plata. Facultad de Ciencias Naturales y Museo. División Ficología; ArgentinaFil: Sunesen, Inés. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina. Universidad Nacional de La Plata. Facultad de Ciencias Naturales y Museo. División Ficología; ArgentinaFil: Sar, Eugenia Alicia. Universidad Nacional de La Plata. Facultad de Ciencias Naturales y Museo. División Ficología; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentin

Análisis de los materiales tipo de Pleurosigma formosum y P. decorum (Pleurosigmataceae, Bacillariophyta)

Los materiales tipo de Pleurosigma formosum W. Smith y P. decorum W. Smith fueron examinados. Ambas especies fueron separadas hasta ahora por el rango de tamaño, la forma de la valva y la densidad de las estrías sobre la base de su análisis con microscopio óptico (MO). Sin embargo, los materiales tipo muestran alguna superposición en los rangos de tamaño y densidad de estrías, con sutiles diferencias en el ángulo de intersección de las estrías oblicuas, el cual es algo más pequeño en P. decorum. El análisis con microscopio electrónico de barrido (MEB) muestra que ambas especies comparten algunos caracteres ultraestructurales tales como el engrosamiento en forma de silla de montar del nódulo central del rafe, la amplia superposición de las fisuras centrales del rafe, la forma de las fisuras terminales del rafe, en gancho corto, la morfología general de los poros internos ocluidos por un himen cruzado por una barra hundida y la presencia de algunos pares esparcidos de poros más profundamente excavados, carentes de barra. Sin embargo, los especímenes tipo difieren en la morfología interna de los poros areolares ocluidos por un himen. Estos son circulares, cruzados por una barra hundida y con bordes engrosados en P. formosum y sub-circulares a elípticos, cruzados por una barra menos hundida y sin bordes engrosados en P. decorum. Los resultados del análisis con MEB apoyan el punto de vista de Hendey acerca de que P. decorum y P. formosum son especies separadas pero cercanamente relacionadas.The type materials of Pleurosigma formosum W. Smith and P. decorum W. Smith were examined. Both species were separated hitherto by size range, valve shape and stria density based on light microscopy (LM) analysis. However, the type materials show some overlap in the size and stria density ranges, with subtle differences in the oblique stria intersection angle, which is somewhat smaller for P. decorum. Scanning electron microscopy (SEM) analysis shows that both species share several ultrastructural features such as a thick saddle-shaped central raphe nodule, very long overlapping central raphe fissures, short hook-shaped terminal raphe fissures, general morphology of the internal hymenoccluded pores crossed by a recessed bar and presence of some scattered pairs of more deeply recessed pores lacking a bar. However, the type specimens differ in the internal morphology of the hymen-occluded areolar pores, circular, crossed by a recessed bar and rimmed in P. formosum and subcircular to elliptical, crossed by a less recessed bar, not rimmed in P. decorum. The SEM findings thus support Hendey’s view that P. decorum and P. formosum are separate but closely allied species.Fil: Sterrenburg, Frithjof A. S.. No especifica;Fil: Sar, Eugenia Alicia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina. Universidad Nacional de La Plata. Facultad de Ciencias Naturales y Museo. División Ficología; ArgentinaFil: Sunesen, Inés. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina. Universidad Nacional de La Plata. Facultad de Ciencias Naturales y Museo. División Ficología; Argentin

Economic Impact of Foreign-owned Firms in the EU and Germany. Bertelsmann Policy Brief #2020/02

In times of Trump and Brexit, protectionist tendencies seem to be a global trend. The advantages that economic interconnectedness implies are increasingly receding into the background. Foreign-owned firms in the EU and Germany, however, make a considerable contribution to employment and gross domestic product (GDP). Nowadays