StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Countries - Research Paper Example

Comments (0) Cite this document
Summary
The question the author address in this paper is whether FDI inflows have been a significant determinant of export growth in 12 CEE countries. To do so, the author uses pooled data for the period between 1996 and 2004 and attempts to account for the effects of FDI on host economy exports. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.1% of users find it useful
Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Countries
Read TextPreview

Extract of sample "Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Countries"

Download file to see previous pages The supply-increasing effects arise when FDI inflows induce increases in the host country's production capacity, which, in turn, increases export supply capacity. The FDI-specific effects arise because foreign capital inflows may incorporate different competitive advantages, such as superior knowledge and technology and thus, higher productivity, or better information about export markets as compared to local firms. We believe that differentiating between these two effects of FDI on exports is especially important in terms of policy implications. It is often argued that successful FDI-promoting policies should lead to, among other things, a significant increase in the host country's exports. ...
In the following section, we provide a discussion of potential channels through which FDI may affect exports. Based on the discussion in this section, we present our empirical model in the next section. The empirical results are presented and compared to those of previous studies in the penultimate section. The last section concludes the paper.
Effects of FDI on Exports - Theoretical Arguments
This section discusses some theoretical arguments regarding the different potential effects of FDI on the host country's exports.
The theory of multinational enterprise (MNE) examines conditions under which firms may undertake FDI and become MNEs. (2) Such decisions may have consequences for the host country's exports and it is a goal of this section to review parts of this theory that predict the effects of inward FDI on the host country's exports.
Overall, the theory indicates that positive effects of inward FDI on a host country's exports may be expected when the host country and a home country have different factor intensities. In this case, the MNE may outsource some segments of its production process to the host country and export these (intermediate) products back to the home country (as well as other countries). Similarly, when the host country has a cost advantage and costs of trade are low (as compared to the trade costs of the home country), the host country may be used by the MNE as an export platform for serving its home market, as well as other markets.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Research Paper”, n.d.)
Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Research Paper. Retrieved from https://studentshare.org/macro-microeconomics/1509050-foreign-direct-investment-essay
(Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Research Paper)
Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Research Paper. https://studentshare.org/macro-microeconomics/1509050-foreign-direct-investment-essay.
“Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1509050-foreign-direct-investment-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Countries

Wage determinant

Wage Determinants Introduction Several forces are responsible for the ultimate determination of wages which are defined as the amount of earnings that accrue to a worker per period of time. Under competitive markets, such as that of the U.S, these forces range from behavioral and institutional forces to economic and equity considerations. A multitude of factors come into play under these forces including the skill set of the employee, productivity of the worker per period of time (referred to as the Marginal Product of Labor/ Demand for Labor under perfectly competitive conditions) the amount of budget the employer has at his discretion to devote to wages, the supply of labor, minimum wage laws, labor union bargaining etc. The mai...
2 Pages(500 words)Essay

Importance of FDI and Export push to China

... to its economy. The FDI and the volumes of exports in china have contributed greatly in the GDP growth. This is evident in several ways. They have added capital formation and cash inflow in the country. They have also contributed to a higher GDP through the positive effects on the total productivity. The FDI and total export have also influenced the growth of GDP through establishment of FIEs that directly have positive spillover effects on the domestic enterprises (Ding and Knight 2007:467). The FDI and the national exports are the major players of the China’s international trade. This is due to the country’s policy to towards FDI and exports that strongly encouraged export-orientation activities and foreign investment. The FDI...
8 Pages(2000 words)Essay

Export-Led Growth Theory

...? Export-Led Growth Theory Export-Led Growth Theory Export-led growth also referred to as export-oriented industrialization or export substitution industrialization is essentially an economic and trade policy aimed at speeding up a country’s process of industrialization. This is primarily achieved through the exportation of products for which the country has substantive comparative advantages. Export-led growth theory provides for the opening of domestic markets and allowing for foreign competition in exchange for access to the markets of foreign nations. However, this is not always the case for most domestic markets since governments may seek to protect blossoming industries to ensure their growth and capacity to exploit their potential...
5 Pages(1250 words)Essay

The Export-Led Growth Model

China’s model is rooted in the double transition of demographic and structural transformation. China economy has tremendously managed the double-digit growth rates from the period when it began economic transformation. This enabled the country to move from a planned to a mixed economy where the market plays the significant roles in resource allocation. Thus, despite the political, social and economic problems associated with the rapid growth in China economies, export-led growth has tremendously enabled China to increase their profitability levels, balance their finances, exceed their debts and trigger their export growth rate.
Export-led growth model have been successful in many economies that employ this model for...

7 Pages(1750 words)Essay

FDI and Economic Growth

The UN defines control in this case as owning 10% or more of the ordinary shares or voting power of an incorporated firm or its equivalent for an unincorporated firm. In the years after the World War II global FDI was dominated by theUnited States, as much of the world recovered from the destruction wrought by the conflict. The U.S. accounted for around three-quarters of new FDI (including reinvested profits) between 1945 and 1960. Since that time FDI has spread to become a truly global phenomenon, no longer the exclusive preserve of OECD countries. FDI has grown in importance in the global economy with FDI stocks now constituting over 20% of global GDP. In the last few years, the emerging market countries such as China and India...
9 Pages(2250 words)Article

Economic growth of Asian countries

... equilibrium condition determined by the tangency of the community indifference curve I0 I0) I1 A1 I0 F B1 E 0 B1 A X Now we consider that the economy has experienced economic growth and hence out of the same endowment the country would be able to produce more. That would be reflected by a rightward shift of the production possibility frontier and the new production possibility frontier...
14 Pages(3500 words)Essay

12. Human Growth and Development

... 12. Human Growth and Development Erik Erickson’s Growth and Development Theoryemphasized that attaining a healthygrowth on personality depends on how an individual face every stages which has corresponding crisis to solve to go beyond the next stage. Older populations are classified in the middle adulthood stage and belong to Generativity vs. Stagnation. In this stage, the individual intends to be productive to make a contribution to the society, however,the individual may experience lack of growth, boredom and over concern with oneself if they unsuccessfully pass the crisis stage (Beckett&Hilary, 159). Older populations possess negative images and sometimes characterized as an unsustainable burden to the public (Beckett&Hilary, 187...
1 Pages(250 words)Essay

Controls for Inflows

...Apollo Shoes, Inc. Apollo Shoes, Inc. Cash Flow Controls As I am looking over the cash flow ment, I am convinced that the onething that cannot be changed is the depreciation and amortization value. This particular value will increase yearly. Therefore, this part cannot be controlled. Trying to keep an influx of cash is hard to do, but necessary for every company to survive. Apollo Shoes shows a decrease in net cash flow from 2005 to 2006. It needs to show an increase in the years to come so that the company will not go bankrupt. However, Apollo Shoes, Inc. shows that the company’s cash expenditures were higher than the income, making the overall cash drop by over $250,000 (Louwers & Reynolds, 2007). I am proposing is that Apollo...
2 Pages(500 words)Essay

Social Determinant of Health

...Social Determinant of Health al Affiliation Social Determinant of Health Introduction The social determinants of health are crucial elements in determining what health models to apply at a given point. The social spaces vary depending on the different factors. These factors could positively influence a given group. Other factors hinder effective healthcare. The various models deployed by different health practitioner aim at ensuring each person attain the much-needed help to ensure they recover from a given illness. The social determinants of health play a crucial in determining where the wellness goal is archived. The society creates a hierarchy where those above the hierarchy tend to benefits from different social factors. The lower end...
5 Pages(1250 words)Essay

Purchasing Power Parity Across Countries

The purpose of this study is to examine how much significance may be attributed to real exchange rates in assessing differences in purchasing power parity between various countries. An assessment of the correlation between the two variables will be undertaken in order to determine whether they impact each other in the short and long term.
The purchasing power parity between various nations depends to a great extent upon various factors which are the indicators of how well the economy is performing, such as imports-exports, consumption, productivity and trade, policy instruments, world interest rates and real exchange rates. The correlation between some of these macroeconomic variables is expressed in the Harbinger-Laursen-Met...
12 Pages(3000 words)Research Proposal

How Flextronics Have Achieved Significant Reductions in Inventory

PCB customers are varied. In most cases, PCB’s are made and sold to low-cost regions such as the Pacific Rim. This PCB are used to produce large quantity electronic components for consumption according to (Pennet.com 2008). However, there has been a shift in the manufacturing industry as most Electronic Manufacturing Services (EMS) prefer to come up with their own end products. This has led to EMS carrying out their own assembling of electronic products. The increased manufacture of electronics has led to increased demand for PCBs. in most cases, large EMS providers have taken the initiative and began manufacturing their own PCB’S.

For a long time, the single-layered PCB’s were the most common as they...
8 Pages(2000 words)Assignment

Afghanistan War and the Export of Heroin

Afghanistan seemed to be big in the United State’s national security policy in the 1980s. The Soviet Union attacked and invaded Afghanistan in 1979, this war turned into an unwinnable guerrilla war. Thus, the strategic policy of America considered Afghanistan as a battleground where the Soviet military machine possibly will be badly defeated and to America, it was a time to arouse domestic dissatisfaction by means of a conflict that could extremely unpopular as well as expensive. The pictures of Afghans that were shown in America in the 1980s depicted them as brave and courageous people, who were fighting to get back their sovereignty from the clutches of the Soviet bear. The rebels of Afghanistan, the mujahideen, were thoug...
9 Pages(2250 words)Assignment

Growth Performance of Indian Economy

This percentage is expected to rise to 70% by 2030 - the largest in the world, according to a report titled Destination India- from the Investment Commission of India.” (Hood).
We all know that for more than a century, the United States has been one of the largest economies in the world. However the past few years showed major development in some countries, and the focus moved to Asian countries like India and China which were progressing very fast.

According to the experts, share in the total world GDP of India will rise from 6% to 11% by the year 2025. The GDP of India rose to 9.0% during the year 2005-06 again to 9.4% in 2006-07. The projection reports say that India will be 60% the size of the US economy...
6 Pages(1500 words)Assignment

The Role of Telecommunications in Growth

If information is significant to advancement, then telecommunications, as a way of sharing information is not only a relationship between people, although a connection in the sequence of the advancement processes itself. The role of telecommunications in broadcasting information can be predominantly important in rural regions where other methods of acquiring and transmission information for instance personal contact, transport, and postal services are expected to be less available.
Distance signifies time, in an all the time more time-conscious world. In economies that rely forcefully upon agriculture or the mining of resources, remoteness from urban markets has usually been improved only with the setting up of enhanced trans...
23 Pages(5750 words)Assignment

The Growth of the Service Industry

The expansion of the service sector has unquestionably generated economic prosperity, but it has eminently contributed to social injustice and inequality. Consequently, I believe that while the growth of the service industry has great economic intuition, it is eventually socially detrimental and distancing society from achieving paradigms of social equilibrium.
Service, by definition, is the exchange of a commodity that has no tangible form; whereas industry is described as the people or organizations engaged in a particular type of enterprise. The service industry is then simply defined as an aggregation of commercial entities that provide services rather than physical objects. The non-material nature of services can be dist...
9 Pages(2250 words)Case Study

Innovation and Growth

Although there is a large amount of literature about innovation in organizations, there is very little on the management style that should promote innovation. (Amar, 2002, p. 14) While innovation is a subject that has evoked keen interest, it is also a subject that has failed to uncover the secrets of what fires innovation in an organization. Researchers have focused on three major areas in relation to innovation in an organization.
For example, the adverse external environment has been found to encourage creativity and innovation. This, along with organizational structure, is likely to play a role in determining the level of innovation that exists in an organization. A study by Russell(1990) has revealed that innovation requ...
14 Pages(3500 words)Coursework

The Globalization Policies in Different Countries

Most of the countries are still confused about the extent up to which foreign participation can be allowed. Everybody has the opinion that international trade can help the development of the economy and infrastructure in a country. Critiques of foreign participation argue that the big foreign retailers will exploit the wealth of a country and the small scale industries of a country will be destroyed by allowing the entry of foreign business tycoons and MNC’s. It is interesting to analyze the pros and cons of international trade.
From the above light green curve, it is clear that international trade has increased gradually from 1994 till 1997. In 1998 through international trade in this region had decreased a bit, it aga...
6 Pages(1500 words)Coursework

Evaluation of Children with Visual Impairment between Ages 4-12

A visually impaired child may suffer from incomplete sight, reduced vision, total blindness as well as legal sightlessness (Kelley and Gale p 45). It is a condition that may become severe in a child, thereby affecting its growth and development. The impact is usually dependent on the kind of loss, age at which it occurs, as well as the general body functioning of the child. The normal interest that is usually evident amongst children on seeing attractive items in their surroundings lacks in a visually impaired child. This may interfere with the child’s learning capabilities unless he/she is assisted to learn. The development of social behavior in children usually depends on the ability to see parents or those in charge of ca...
6 Pages(1500 words)Coursework

Does Export Promotion Significantly Improve Growth Prospects for Less Developed Countries

Alternate theoretical approaches emphasize the role of social savings, institutions etc in explaining economic growth than the export promotion policies. Empirical studies, however, give mixed results (Balasa, 1978, 1985; Edward, 1998; Ullah et al, 2009; Elbeydi et al, 2010 etc). The results are dependent on country-specific factors, the methodology adopted for the study etc. Given this background, a detailed empirical study on the contribution of export promotion in enhancing economic growth deserves great importance and has important policy implications.
Studies have shown that the stagnation of exports took place in Africa for the past three decades. Moreover, the reports show the composition of exports in Africa remaining u...
41 Pages(10250 words)Research Paper

A Significant Role to Develop the Deception

The pretensions and lies intertwine each other to create the perception of the deception to the audience. In the effort of creating the plot and its progression, all the main characters spread lies or have secrets to hide to create a picture of deception.
First and foremost, King Claudius is a very dishonest and deceitful main character all throughout the Shakespearean drama. It is his self-destructing deceits the lead to his own demise and the death of the throne of Danish. He acquires all his power by secretly killing his own brother. He deceives the other characters around him by engaging in a strange waking and celebration. He mourns and celebrates in a pretentious manner to show that he sorrowful for the demise of his br...
7 Pages(1750 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Was FDI Inflows a Significant Determinant of Export Growth in 12 CEE Countries for FREE!

Contact Us