Level Of Foreign Investment Research Articles

Directions of Development of National Innovation System

Purpose: to study the feasibility of building a national innovation system on the principles of rational self-sufficiency of the domestic economy. Methods: during research following methods were applied: comparative and correlative analysis, correlations, decomposition, and economic analysis. As an analytical and evidence materials used for international comparisons, as well as normative-legal documents regulating innovative activities in the Russian Federation. Results: international experience suggests that the most common way of ensuring innovative development of the country is to attract investments in advanced technological States. Passed a similar path in Germany, Japan, South Korea, and China. However, in today's Russia, such a solution is impossible for two reasons. The first is the already accumulated level of foreign investment in the industry, exceeding the threshold of national security. And the second is the reluctance to contribute to the economic progress in our country, conducting an independent policy on the part of developed States of the world under US control. In these circumstances, the only way is to build a national innovation system (NIS), relying primarily on its own strength, especially because all the necessary prerequisites and resources are in place. Conclusions and Relevance: results of the study indicate the presence of necessary and sufficient conditions for the formation of a national innovation system focused on the use of internal potential of economy of the Russian Federation. The challenge is in choosing the right principles of its construction.

Improving Arbitration Climate in Japan: Report and Recommendations

Japan is the third largest economy in the world, strongly oriented on high levels of foreign investment and with large enterprises engaged in international commercial transactions. Yet despite a strong rule of law and a favourable legislative framework based on the UNCITRAL Model Law on International Commercial Arbitration it has one of the least utilised arbitration systems in Asia.This report and recommendations resulted from a project supported by Daiwa Anglo Japanese Foundation, which brought together arbitration experts from Japan and the United Kingdom to analyse and make recommendations on how to make Japan a more attractive destination for arbitration. The project included a seminar at the Institute of Advanced Legal Studies in London in May 2016 and a conference at Nagoya University in June 2016. This report analyses key issues related to development of international arbitration in Japan and propose recommendations on the basis of analysis and discussion at these two events.

Do Foreign Buyers Compress Office Real Estate Cap Rates?

We investigate the relation between the activity of foreign investors and capitalization rates in major European office markets. We provide a comprehensive analysis of the determinants of European office market capitalization rates. Using DTZ's Investment Transaction Database and data on a range of local sector-specific and macroeconomic variables across 28 key European cities over 1999—2013, we test several empirical hypotheses including potential endogenous determination of office capitalization rates and the level of foreign investment. A two-stage modeling exercise reveals that there is significant negative effect of foreign investment on office market capitalization rates. The results are robust across several model specifications and samples.

Globalization and its Positive Impact on Indian Economy

After the amendments of liberalization, privatisation, and globalization in 1991, India gained a new paradigm. It opened up as a hub of efficient labourers and also as an efficient market. Globalization acted as an initiative for the improvement of technology and skills. Technology triggered the productivity level, and it also initiated a proper platform for the service sectors (like IT hub) and manufacturing sectors. The improvement of technological skill increased due to the opening up of Research -Development and also due to the improvement in education system. The governance and structure of the government changed i.e. the hierarchy of the central authority was segregated into centre and periphery (state-district level management-local governments-Zillah parishad-gram panchayat), this system provided an overview for proper implementation of active schemes. Impact of Globalization gained importance when the country became an investment hub of foreign companies and multinationals. As the globalization attracted foreign investors to invest in the financial market (like stock market, share market), the commodity market also expanded. India was experiencing a population explosion at that time which acted as the major engine behind the growing commodity market. The positive impacts of globalization were excessively felt from 1994 onwards when the government catered higher amount of foreign direct investments (FDI) and foreign institutional investment (FII). Therefore, this provided a stage to establish MNC’S (multinational corporations). . Multinational corporations (MNCs) are most simply defined as a corporation or enterprise that conducts and controls productive activities in more than one country. They are important drivers of global economic activity, but have an ambiguous relationship with different forms of regulation that promote labour standards. Considering their global nature connecting different societies, Multinational corporations are generally related with high adoption of private manner of governance falling under the path of corporate social responsibility (CSR). These huge firms, mostly from North America, Britain, Europe, and Japan but also increasingly from newly industrialized countries like South Korea, Taiwan and Brazil, present an unique opportunity but may also pose serious problems for many developing countries in which they operate. Two central characteristics of multinational corporations are their large size and the fact that their worldwide operations and activities tend to be centrally controlled by their parent companies. They act as the major force in the rapid globalization of world trade. Thus this led to a reduction in poverty by drafting a drastic change in the economic policies. This level of foreign investment restructured the economy from its core. India’s economic performance in the post-reform period created a growth rate of 6.7% within a 5 year span of globalization; this helped India to gain confidence in the world market and made it one of the fastest growing economies. Thus this paper provides a guideline to cover all the positive aspects of globalization on Indian economy.

Energy Efficiency Estimation Based on Bayesian Method and Industrial Economic Transition: Taking Shandong as an Example

This paper studied the total factor energy efficiency of industrial sector’s in Shandong. First, theoretical models of stochastic frontier approach on energy efficiency were structured, and then the referred parameters were estimated by using panel data of thirty-seven industries in Shandong from 2006 to 2013 and Bayesian estimation method. Finally Tobit model was applied to empirically study the influencing factors on energy efficiency of industrial sector’s. The study indicates that: (1) The input of capital and energy is notably positively correlative to output, while the input of labor quantity is negatively correlative to output. This means labor redundancy exist in industrial sectors. (2) Chemical industry, machinery industry, equipment manufacturing industry and food processing industry which have high energy efficiency should be further developed, especially marine chemical industry and marine biological medicine should be focused on to realize traditional industry upgrading. (3) Enterprise scale, international trade, the level of foreign investment and technology progress are notably positively relative to energy efficiency, while the proportion of state-owned economy have negative impact on energy efficiency. Therefore, it is necessary for further improvement in industrial energy efficiency in Shandong to decrease the proportion of stated-owned, encourage private capital entrance, extend opening up, and speed up the technical innovation.

Malaysia. The New Economic Policy in Malaysia: Affirmative action, ethnic inequalities and social justice Edited by Edmund Terence Gomez and Johan Saravanamuttu Singapore: NUS Press. 2013. Pp. xviii + 393. Map, Notes, Index.

The New Economic Policy in Malaysia: Affirmative action, ethnic inequalities and social justice Edited by EDMUND TERENCE GOMEZ and JOHAN SARAVANAMUTTU Singapore: NUS Press. 2013. Pp. xviii + 393. Map, Notes, Index, doi:10.1017/S0022463414000745 In combining the findings of two research groups at Universiti Malaya and the National University of Singapore, this edited collection represents the most comprehensive assessment to date of the efficacy of Malaysia's New Economic Policy. The grand aim of the NEP after 1971 was to correct ethnic economic imbalances in Malaysia, particularly through propelling Malays and other 'indigenes' into the modern industrial and commercial sphere. This affirmative action programme involved unprecedented state intervention in Malaysian economic life, and it has gained admiring emulation in Fiji, South Africa, Zimbabwe, and India. As the editors point out in their introduction, there is no disputing the reduction in poverty levels and restructuring in corporate equity holdings that the NEP induced. But, there have been downsides, which all the contributors point to. As Ragayan Haji Mat Zin tells us, poverty eradication has not been spatially uniform--Kedah, Kelantan, Perlis, Terengganu, Sabah, and Sarawak continue to experience higher incidences of poverty than the rest of Malaysia, given less access to education, lower levels of foreign investment, and limited industrialisation. Meanwhile, the 'disloyalty' of electorates towards the ruling coalition, in the east-coast peninsular states and the East Malaysian territories, has been punished by the withholding of federal largesse. There also remains an ethnic concentration of poverty amongst Malay/bumiputera and Indian communities. In the countryside, the divide between the 'haves' and the 'have-nots' has been accentuated by development initiatives. This is brought home in Maznah Mohamad's excellent micro-study of villages in northwest Kelantan--over the longer term, the NEP did not succeed here in making the Malay poor any less deprived, highlighted by the phenomena of reverse urban-rural migration after the 1997 crash, the dislocations of youth unemployment and drug abuse, the disadvantages for women and the large number of single-parent families, and the tendency for the Malay village to remain an 'exclusive [ethnic] enclave' (p. 81). The failures of the NEP in small and medium-scale enterprises are brought out by Gomez's own chapter, where he argues that affirmative action in business and an over-concentration on 'race' rather than 'merit' has contributed to Malaysia's economic exposure to the vicissitudes of the global economy and has suppressed genuine entrepreneurship. A similar story emerges in Andrew Aeria's study of Sarawak: the NEP has been used to increase wealth accumulation by a few well-connected elite bumiputera politicians and businessmen, backed by a clique of astonishingly rich ethnic Chinese entrepreneurs. In this rampant rent-seeking and cronyism, the costs of infrastructure projects have been artificially inflated, leaving even less funding for projects directed at sustainable poverty alleviation. Turning to the public sector, Chan Chee Khoon admits that Malaysia's public healthcare system is remarkably comprehensive for a developing-world country. But the recent tendency for the government and parastatals to buy into private providers is leading to a two-tier system, potentially leaving a 'decrepit public sector for the marginalised lower classes' (p. 167). As Lim Hong Hai emphasises, increased Malay domination of the civil service has run completely contrary to the prime 'race-blind' objective of the NEP to eliminate the association of ethnicity with economic function. …

Intertemporal Incentives, Equilibrium Selection, and Rational Investment Collapse

In this paper we model the process of international investment flows when agents face strategic motives. We show that domestic agents' expectations about the behavior of foreign investors are crucial in the process of the determination of the equilibrium of the domestic economy. Specifically, we illustrate that domestic agents' beliefs about the level of foreign investment can serve as an equilibrium selector and in particular can lead to a selection of an inferior equilibrium with no foreign investment. Moreover, unlike other contributions we do not treat beliefs as exogenous, but rather we treat beliefs as a part of equilibrium and ensure that beliefs are consistent with the model. Specifically, we show that agents expectations about rational foreign investors leaving with probability q per period are in fact verified in equilibrium and rational foreign investors do in fact leave with probability q per period.

Current Status of FDI in Hospitals - A Review

Healthcare sector has been emerging as one of the largest service sector in India. As per a recent CII-McKinsey report, the growth of healthcare sector can contribute to 8-9% of GDP and increase employment by at least 3.5 million by 2014. The objectives of the study are to provide the current status of FDI in Hospitals and to identify some of the challenges and opportunities for Foreign Direct Investments in healthcare sector. The sectoral distribution of FDI is dominated by the service sector. The highest FDI equity inflows were received in this sector (financial & non financial services), amounting to 19% of the total FDI inflows, followed by drugs & pharmaceuticals (13%), telecommunications (8%) construction activities (7%) metallurgical Industries and power sectors (6% each), Misc mechanical & engineering industries (5% each), hotel & tourism and chemicals (other than fertilizers - 3% each). The balance of inflows (30%) was accounted for by other sectors. The FDI (Foreign Direct Investment) equity inflows have been of the order of Rs. 181,962 crore (US $ 32.2 Billion) during the financial year from April 2013 to October 2014, as against Rs. 94,179 crore (US$ 26.0 Billion) during the corresponding period last year, the cumulative FDI inflows from April, 2012 to December 2013 are Rs. 989,079 crores (US$ 258.1 billion). The FDI inflows in hospital and diagnosis sectors have received 0.03% growth from April 2013 to February; 2014. The percentage of FDI in hospital and diagnostic sector in total FDI in India has been increased from 1.72 in December 2013 to 2.80 June, 2014. However, as positive sentiment for doing business in India is resurfacing, in-flow of FDI in India is rising. Further, FDI in healthcare especially hospitals is understood to pay off rich dividends and good returns on investment in the long run. But yet, only time will tell how these investments would impact the core of the inadequacies and inequities of the Indian health system and whether the people would benefit from such measures. To conclude, the country should provide the quality health services by examining the challenges first and then the opportunities for commercialization of their health sector, rather than being sidetracking in to considering the level of foreign investment.

Examination of Iran's Crude Oil Production Peak and Evaluating the Consequences: A System Dynamics Approach

Despite considerable efforts to give diversity to world's energy supply portfolio, oil still has a significant share among energy carriers and plays a major role in economy of countries. Regarding dependency of Iran's economy on revenues of crude oil exports, investigations on the dynamics of crude oil production rate (considering the factors such as technological, economic, political, etc.) are of high importance for the country. In this paper, factors influencing the Iran's crude oil production peak are investigated by system dynamics approach. Through results obtained by the model it is shown how different factors, within causal relationships, affect the occurrence time and the volume of produced oil at its peak. The model is also used to evaluate different scenarios on oil price, geological uncertainty, production depletion, and foreign investment level in the country. Moreover, it can be used to simulate behavior of main variables in the industry under different policy options. The model predicts that the peak will occur sometime between 2035 and 2042 with various production volumes in different scenarios. The developed model can help practitioners, especially policy makers, in the oil sector to gain a systemic and comprehensive insight of influencing factors and the relationships which cause occurrence of Iran's crude oil peak. Investments in all exploration and production sectors, which depend on the oil prices, might be the most crucial variable on the future of the industry and its success to help the developing country achieve its goals.

The Effect of EU Accession on Internal Migration in Poland

This article examines the impact European Union (EU) policies have on internal migration in Poland. It argues that the EU indirectly through its cohesion funding and internal market policies creates push and pull incentives that affect internal migration. It focuses on the impact of three EU regulated factors: foreign direct investment, international migration, and EU funding. It contends that both foreign investment to a voivodeship as a result of the EU’s internal market policy, and EU funding to a voivodeship as a result of the EU’s cohesion policies, attracts internal migrants to that voivodeship and discourages residents from leaving. The article further argues that increasing international migration from a voivodeship as a result of the EUs labor policies decreases the incentive for internal migration. A cross-sectional time-series statistical analysis finds that higher levels of foreign investment and EU funding attract migrants to a voivodeship, while higher levels of international migration, FDI inflow, and EU funding decreases the incentive for residents of that voivodeship to relocate internally.

Os Estados Unidos como nação devedora: da Independência até 1914

Em 1914, os Estados Unidos eram o maior país devedor do mundo. Desde a sua independência até aquele ano, o volume de investimentos estrangeiros naquele país sempre fora muito maior do que o de seus próprios investimentos no exterior. Este artigo documenta o caráter mutável dos investimentos externos que ele recebeu, mostrando a variedade das obrigações públicas norte-americanas a nível federal, estadual e local, bem como a transição que houve através do tempo das inversões estrangeiras no âmbito governamental para as destinadas ao setor privado. As estradas de ferro representaram uma importante atração, mas houve muitos outros envolvimentos estrangeiros nos mais diversos ramos da economia dos EUA, que desde cedo foi acolhendo empresas multinacionais. Automóveis Mercedes, pneus Michelin e alimentos para bebês da Nestlé já eram fabricados naquele país antes de 1914. O trabalho mostra que os investimentos estrangeiros trouxeram custos e benefícios aos EUA, defendendo o ponto de vista de que tiveram um efeito positivo para o desenvolvimento do País no período de 1776 a 1914.

Agrarian structure, foreign investment in land, and land prices in Brazil

The recent global rush for farmland in Latin America has produced a dramatic increase in the level of foreign investment in land in Brazil. The current trend accentuates the ongoing process of foreignization of agriculture associated with the production of grains, sugar, ethanol and other commodities, increasing land prices. In response, the Brazilian government reestablished a legal mechanism for ‘controlling’ land-based foreign investment which has proven neither efficient nor effective in solving land concentration. This paper examines this issue by analyzing the causes of the increase in investment as well as the consequences of this process with respect to land prices, critically situating land-based investments and the government's policy response in a broader discussion of the demands of agrarian social movements.

Government use licenses in Thailand: an assessment of the health and economic impacts

BackgroundBetween 2006 and 2008, Thailand's Ministry of Public Health (MOPH) granted government use licenses for seven patented drugs in order to improve access to these essential treatments. The decision to grant the government use licenses was contentious both within and beyond the country. In particular, concerns were highlighted that the negative consequences might outweigh the expected benefits of the policy. This study conducted assessments of the health and economic implications of these government use licenses.MethodsThe health and health-related economic impacts were quantified in terms of i) Quality Adjusted Life Years (QALYs) gained and ii) increased productivity in US dollars (USD) as a result of the increased access to drugs. The study adopted a five-year timeframe for the assessment, commencing from the time of the grant of the government use licenses. Empirical evidence gathered from national databases was used to assess the changes in volume of exports after US Generalized System of Preferences (GSP) withdrawal and level of foreign direct investment (FDI).ResultsAs a result of the granting of the government use licenses, an additional 84,158 patients were estimated to have received access to the seven drugs over five years. Health gains from the use of the seven drugs compared to their best alternative accounted for 12,493 QALYs gained, which translates into quantifiable incremental benefits to society of USD132.4 million. The government use license on efavirenze was found to have the greatest benefit. In respect of the country's economy, the study found that Thailand's overall exports increased overtime, although exports of the three US GSP withdrawal products to the US did decline. There was also found to be no relationship between the government use licenses and the level of foreign investment over the period 2002 to 2008.ConclusionsThe public health benefits of the government use licenses were generally positive. Specifically, the policy helped to increase access to patented drugs, while the impact of the US GSP withdrawal did not adversely affect the overall export status. Because the levels of benefit gained from the government use licenses varied widely between the seven drugs, depending on several factors, this study makes recommendations for the future implementation of the policy in order to maximise benefits.

Peace Dividends in a Trade-Theoretic Model of Conflict

We construct a trade-theoretic model for three open economies two of which are in conict with each other and the third is the source of foreign investments to the two warring countries. War eorts | which involve the use of soldiers | is determined endogenously. The purpose of war is the capture of land, but the costs are production sacriced, reduced ow of foreign investments, and general disruptions in the economy. We examine the eect of a bilateral piecemeal reduction in war eorts on the level of foreign investments and on welfare in the three countries. We

Intertemporal Incentives, Equilibrium Selection and Rational Investment Collapse

In this paper we model the process of international investment flows when agents face strategic motives. We show that domestic agents' expectations about the behavior of foreign investors are crucial in the process of the determination of the equilibrium of the domestic economy. Specifically, we illustrate that domestic agents' beliefs about the level of foreign investment can serve as an equilibrium selector and in particular can lead to a selection of an inferior equilibrium with no foreign investment. Moreover, unlike other contributions we do not treat beliefs as exogenous, but rather we treat beliefs as a part of equilibrium and ensure that beliefs are consistent with the model. Specifically, we show that agents expectations about rational foreign investors leaving with probability q per period are in fact verified in equilibrium and rational foreign investors do in fact leave with probability q per period.

Home Country Institutions As Predictors Of FDI In India

This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found in India are less of a deterrent to investments from home countries with high levels of institutional development than from home countries with similar institutional voids. Overall, foreign investments in India are found to be significantly related to the strength of institutions within home countries. The levels of both approved and realized foreign direct investment (FDI) are strongly influenced by economic factors and home country regulative institutions, and weakly influenced by home country cognitive institutions. When considered separately, the cognitive institutions and regulative institutions within a given home country each significantly influence the level of approved/realized FDI into India. However, when considered jointly, only the strength of regulative institutions is predictive of FDI inflows.

A Tale of Two City-States; Novgorod and Pskov in the 1990s

This paper examines two regions of the Russian Federation, Novgorod and Pskov, to compare how differences in economic policy affect economic development.Despite common histories, geography and natural resources, Novgorod committed early on to policies that would attract foreign investments in production.Pskov, on the other hand, withdrew into protectionist policies until it was clear that efforts to increase domestic and foreign investment levels were needed.Using available statistics, we consider the reasoning that led these regions down such distinctly different economic policy paths and consequences of these choices. Key words: Russia, regions, Novgorod, Pskov

Overseas Monitors in Emerging Financial Markets: Evidence from Foreign Ownership in Taiwan

The literature on foreign portfolio ownership in developed markets suggests that investors minimize their informational disadvantage when making foreign investments. We examine Taiwan, an emerging financial market where news of foreign institutional portfolio ownership is closely and widely scrutinized by the market participants. Our empirical analyses reveal that foreign institutions have pronounced valuation effects in Taiwan. We find a startling foreign ownership effect whereby stocks with high foreign ownership outperform stocks with low foreign ownership. Although foreigners tend to own export-oriented and large firms, the foreign ownership effect is present even after controlling for exports, size, or transparency levels. Foreign portfolio ownership is also strongly and positively associated with firm performance. Finally, foreign investment levels can explain the performance of long-term foreign investment flows. Our formal empirical results and market observations are consistent with foreign institutions that use their informational advantage to select and invest in local stocks and to monitor them afterwards.

Vocational and Enterprise Training in China: Policy, Practice and Prospect

The training provision and skill level of the labour force of a nation has been widely regarded as essential to organizational and national performance in an era of accelerating global competition. China, with one of the largest labour forces in the world, has often been criticized for the low quality of its labour supply. This paper critically examines the vocational training system and enterprise training provision in China. It analyses the role of the state and employers, and the main characteristics and problems in the training provision. The paper identifies the likely groups of workers missing out in the training network. It also contemplates the prospect of training in China against the context of its recent WTO accession, an increasing level of foreign investment in the country and, more importantly, its recent radical restructuring of the state-owned sectors and its rapid expansion of private sectors including the informal sector.

Kazakhstan's Economic Policy under Conditions of High Level of Foreign Investments

Kazakhstan's economic policy in the sphere of attracting foreign investments in 1993-2003 is considered in the article. Special attention is paid to the analysis of their macroeconomic efficiency. It is concluded that high rates of economic growth in Kazahkstan in 2000-2003 are conditioned not so much by the inflow of foreign investments as by exchange rate and currency policies of monetary authorities of the country. The tendency of growing interfirm indebtedness and negative balance of current accounts in favor of foreign investors is also analyzed.