The Geographic Distribution of Economic Activities of the USA Multinational Enterprises

This paper examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalisation hypotheses. Also, the fact that FDI has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the share version of the gravity model over its classical formulation. A panel data cointegration-type analysis between FDI and GDP, and per capita income differential suggests that GDP has a positive impact on FDI, but provide mixed evidence as to whether per capita income differential reflects demand or supply determinants of FDI. Causality tests between income, income differential and FDI points to FDI playing a positive role on economic growth and convergence.Foreign direct investment, multinational enterprises, gravity model, dynamic panel data model, panel data cointegration

Gravity for Outsourcing: an Application with Input-Output Dataset.

This paper examines the impact of gravity on outsourcing. We derive a gravity equation from the classical spatial supply problem in which firms purchase some of their inputs from other firms paying the required transport costs. We also allow for different levels of productivity of the firms and build a gravity equation from entropy maximization. Even if the gravity equations look similar, we show that their underlying structures are different. In general terms, countries are viewed as competing with each other for interaction. The competing destinations gravity model represents a step forward in the recognition of interdependencies in spatial choice. Thus, we include a variable to explain the spatial structure of outsourcing countries in a geographical system. We find much stronger support for the gravity equation derived from the probabilistic input demand function than for the deterministic gravity model. The model shows that outsourcing is carried out mostly because of factor cost differentials and technological differences, but that distance and the gravity of other countries adversely affect trade in intermediate goods and services

Spatial interaction model for healthcare accessibility: what scale has to do with it

This manuscript develops a theoretical spatial interaction model using the entropy approach to relax the assumption of the deterministic utility function. The spatial healthcare accessibility improves as the demand for healthcare increases or the opportunity cost of traveling to and from healthcare providers decreases. The empirical application used different spatial econometric techniques and multilevel modeling to evaluate the spatial distribution of existing hospitals in Texas and their social and economic correlates. To control for spatial autocorrelation, spatial autoregressive regression models were estimated, and geographically weighted regression models examined potential spatial non-stationarity. The multilevel modeling controlled for spatial autocorrelation and also allowed local variation and spatial non-stationarity. The empirical analysis showed that healthcare accessibility was not stationary in Texas in 2015, with areas of poor accessibility in rural and peripheral areas in Texas, when using hospitals’ location and county data. The model of spatial interaction applied to healthcare accessibility can be used to evaluate policies aiming at the provision of health services, such as closures of hospitals and capacity increases.info:eu-repo/semantics/publishedVersio

Shakedown and collapse of some axisymmetric pressure vessel heads and nozzles

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The Timing and Probability of FDI: An Application to the United States Multinational Enterprises

An "option-pricing" model is employed to analyse when a firm should expand its production capabilities abroad. In a framework where the firm's profits are determined by some average of the attractiveness of the home and foreign countries, and attractiveness in each country follows differentiated Brownian motions, this paper derives an optimal trigger value for FDI. The model shows that, contrary to the NPV rule, FDI entry should be optimally delayed the greater the uncertainty surrounding the future path of attractiveness in both locations. Another important result is that MNEs do not regard FDI as a risk diversification tool. The second part of the paper is devoted to empirically test the results of the model. Drawing on data of FDI from the US into a panel of developed and developing countries and using labour costs as a proxy for (the reciprocal of) attractiveness, our estimation confirms the results of the model, in particular that FDI entry events are negatively related to the uncertainty surrounding attractiveness.

Patients’ out-of-pocket expenses analysis of presurgical teledermatology

Background: This study undertakes an economic analysis of presurgical teledermatology from a patient perspective, comparing it with a conventional referral system. Store-and-forward teledermatology allows surgical planning, saving both time and number of visits involving travel, thereby reducing patients’ out-of-pocket expenses, i.e. costs that patients incur when traveling to and from health providers for treatment, visits’ fees, and opportunity cost of time spent in visits. to The study quantifies the opportunity costs and direct costs of visits for adults waiting for dermatology surgery. Method: This study uses a retrospective assessment of 123 patients. Patients’ out-of-pocket expenses of presurgical teledermatology were analyzed in the setting of a public hospital over two years. The teledermatology network covering the area served by the Hospital Garcia da Horta, Portugal, linked the primary care centers of 24 health districts with the hospital’s dermatology department. The patients’ opportunity cost of visits and direct costs of visits (transport costs, and visits’ fee) of each presurgical modality (teledermatology and conventional referral), were simulated from initial primary care visit until surgical intervention. Two groups of patients, those with Squamous Cell Carcinoma and those with Basal Cell Carcinoma, were distinguished in order to compare the patients’ out-of-pocket expenses according to the dermatoses. Results: From a patient perspective, the conventional system was 2.12 times more expensive than presurgical teledermatology. Teledermatology allowed saving €0.74 per patient and per day of delay avoided. This saving was greater in patients with Squamous Cell Carcinoma than in patients with Basal Cell Carcinoma. Although, the probabilistic sensitivity analysis corroborates the results of the base case scenario, only a prospective study can substantiate these results. Conclusion: In the Portuguese public healthcare system and under specific cost hypotheses, from a patient economic perspective, teledermatology used for presurgical planning and preparation is the dominant strategy in terms of out-of-pocket expenses, outperforming the conventional referral system, especially for patients with severe dermatoses.info:eu-repo/semantics/publishedVersio

Competing destinations gravity model applied to trade in intermediates

The competing-destinations formulation of the gravity model ensues from the fact that unlike the classic version, this approach explicitly acknowledges the interdependence of the flows between a set of alternative countries. This paper applies the competing-destinations gravity model to the analysis of trade in intermediate goods. The results of the model were then tested empirically with an international input-output dataset and using the PPML estimator. The empirical results suggest that the analytical model can explain trade in intermediate goods. Indeed, as predicted, import of intermediate goods is increasing in the importing country's demand for inputs, in the competitiveness of the exporting country, and decreasing in distance and competition posed by alternative countries.info:eu-repo/semantics/acceptedVersio

Competing-destinations gravity model: an application to the geographic distribution of FDI

WOS:000267973200012 (Nº de Acesso Web of Science)The competing-destinations formulation of the gravity model ensues from the fact that unlike the classical version, this approach explicitly acknowledges the interdependence of the flows between a set of alternative locations, i.e. country-recipients are competing for Foreign Direct Investment (FDI). This article examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalization hypotheses. Also, the fact that FDI has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the competing-destinations version of the gravity equation over its classical formulation

The timing and the probability of FDI: an application to the US multinational enterprises

An 'option-pricing' model is employed to analyse when a firm should expand its production capabilities abroad. In a framework where the firm's profits are determined by some average of the attractiveness of the home and foreign countries, and attractiveness in each country follows differentiated Brownian motions, this paper derives an optimal trigger value for FDI. The model shows that, contrary to the NPV rule, FDI entry should be optimally delayed the greater the uncertainty surrounding the future path of attractiveness in both locations. The second part of the paper is devoted to empirically test the results of the model. Drawing on data of FDI from the US into a panel of developed and developing countries and using labour costs as a proxy for (the reciprocal of) attractiveness, our estimation overwhelmingly confirms the results of the model, namely that FDI entry events are negatively related to the uncertainty surrounding attractiveness.Foreign Direct Investment, Multinational Enterprises, Option-Pricing Model; Ordered Probit Model for Panel Data.

The Locational Determinants of the U.S. Multinationals Activities

This paper examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalisation hypotheses. Also, the fact that FDI has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the share version of the gravity model over its classical formulation. A panel data cointegration-type analysis between FDI and GDP, and per capita income differential suggests that GDP has a positive impact on FDI, but provide mixed evidence as to whether per capita income differential reflects demand or supply determinants of FDI. Causality tests between income, income differential and FDI points to FDI playing a positive role on economic growth and convergence.