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Domestic Investments (domestic + investment)

Distribution by Scientific Domains

Humanities and Social Sciences	66%
Business, Economics, Finance and Accounting	33%

Selected Abstracts

FDI AND DOMESTIC INVESTMENT IN TAIWAN: AN ENDOGENOUS SWITCHING MODEL

THE DEVELOPING ECONOMIES, Issue 4 2007
Hui-lin LIN
F23; D24; F21; C24 The purpose of this paper is to examine the effect of the FDI decision on domestic investment in the case of Taiwanese manufacturing firms. In addition, we also consider the deferral effect of the FDI decision and the role of firm size. To this end, this paper takes advantage of an endogenous switching model from which consistent estimators are obtained after correcting for the self-selection problem. The empirical results show that the effect of these manufacturing firms' FDI decisions on domestic investment is significant within the firms. Furthermore, a crowding-out effect of FDI on domestic investment is found when Taiwanese firms engage in defensive FDI. Finally, FDI is found to have a positive influence on the domestic investment of the larger firms, while the influence is negative in the case of the smaller firms. [source]

Skill Premium, Biased Technological Change and Income Differences

CHINA AND WORLD ECONOMY, Issue 6 2009
Wei Zou
D24; D33; O14 Abstract Using 1987,2006 panel data for China, we explore the dynamics of the skill premium. The present paper focuses on the skill premium as an explanation for why income differences are so large in China. Our empirics show that: the rise in the relative supply of skilled labor results in an increase, instead of a decrease, in the skill premium; domestic investment is not complementary with skill formation; the skillpremium is higher in more developed provinces; economic openness facilitates an increase in the skill premium; whether foreign direct investment induces skill-based technology change or not, it drives up the skillpremium. An array of policy prescriptions for reducing income differences and ensuring sustained economic growth are provided. [source]

The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development

DEVELOPMENT POLICY REVIEW, Issue 5 2004
Liesbeth Dries
During the 1990s transition period in Central and Eastern Europe, the retail sector was privatised and some domestic-capital supermarket chains gradually emerged. Massive inflows of foreign direct investment followed and competitive domestic investments drove a rapid take-off of large-format modern retail sector development from a tiny ,luxury' niche of around 5% of food retail in the mid-1990s to 40,50% by 2003 in ,firstwave' and 20,40% in ,second-wave' countries. In ,third-wave' countries like Russia, it is still only 10% but growing very fast. In most countries there is rapid multi-nationalisation and consolidation of the supermarket sector, with profound changes in procurement systems affecting the conditions facing farmers, and creating important opportunities and challenges. [source]

How Does Structural Reform Affect Regional Development?

ECONOMIC GEOGRAPHY, Issue 4 2000
Resolving Contradictory Theory with Evidence from India
Abstract: Regional theory offers little coherent guidance on the prospects for interregional development after structural reform in developing nations. In this paper I suggest a basic set of hypotheses in which the neoliberal nation-state is simultaneously a reduced state (less concerned about promoting regional balance) and an enlarged state (directing development toward selected regions). Under the new regulatory structure the location of post-reform investments may be expected to favor the coast, advanced regions, and existing metropolises (especially the edge areas); these expectations may be more true for foreign direct investments than domestic investments (especially the direct investments of the state). I use disaggregated pre- and post-reform industrial data from India to test the hypotheses. The results offer partial to full support for all hypotheses, providing evidence of the return of cumulative causation, and raising concerns about the political economy of future development in the lagging regions. [source]

Do Reforms in Transition Economies Affect Foreign Bank Entry?

INTERNATIONAL REVIEW OF FINANCE, Issue 3-4 2002
Robert Lensink
Using a newly developed database for eight transition economies, this paper examines whether reforms and political freedom are important for foreign bank entry. We provide evidence that foreign bank entry positively responds to reform measures. We also find some support for the importance of political freedom. Our estimates suggest that economic reform affects foreign bank entry by enhancing the efficiency of the financial sector and by stimulating domestic investments. [source]