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Investment
Kinds of Investment Terms modified by Investment Selected AbstractsIS CORPORATE R&D INVESTMENT IN HIGH-TECH SECTORS MORE EFFECTIVE?CONTEMPORARY ECONOMIC POLICY, Issue 3 2010RAQUEL ORTEGA-ARGILÉS This paper discusses the link between R&D and productivity across the European industrial and service sectors. The empirical analysis is based on both the European sectoral OECD data and on a unique micro-longitudinal database consisting of 532 top European R&D investors. The main conclusions are as follows. First, the R&D stock has a significant positive impact on labor productivity; this general result is largely consistent with previous literature in terms of the sign, the significance, and the magnitude of the estimated coefficients. More interestingly, both at sectoral and firm levels the R&D coefficient increases monotonically (both in significance and magnitude) when we move from the low-tech to the medium- and high-tech sectors. This outcome means that corporate R&D investment is more effective in the high-tech sectors and this may need to be taken into account when designing policy instruments (subsidies, fiscal incentives, etc.) in support of private R&D. However, R&D investment is not the sole source of productivity gains; technological change embodied in gross investment is of comparable importance on aggregate and is the main determinant of productivity increase in the low-tech sectors. Hence, an economic policy aiming to increase productivity in the low-tech sectors should support overall capital formation. [source] SUICIDE, RISK, AND INVESTMENT IN THE HEART OF THE AFRICAN MIRACLECULTURAL ANTHROPOLOGY, Issue 4 2009JULIE LIVINGSTON ABSTRACT This essay considers new forms of investment, risk, and self-determination, among Botswana's middle and aspirant classes, as well as the loneliness and rage that are at stake when they fail. In it, I use specific instances and more widespread talk of suicides and murder,suicides contemplated, attempted, and accomplished as a vehicle for pondering the social dimensions of investment, and the perils of secrecy and the loneliness that shadow it. Amid a new regime of risk, investment, and self-determination brought by discontinuities of economic boom and widespread AIDS death over the past decade, Batswana are facing new questions about how to invest in relationships, selves, and futures. The essay concludes with a radically different context, a cancer ward, where Batswana seek to exile suicide and nihilism from the beds, minds, and hearts of patients through processes of socialization and paternalism that deny self-determination, while at the same time questing for and demanding investment in high-tech biomedicine. [source] THE IMPACT OF REGULATORY COMPETITION ON THE INVESTMENT OF AUSTRALIAN UNIVERSITIES IN NEW ZEALANDECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 2 2005Malcolm Abbott In this paper the regulatory differences between Australia and New Zealand in higher education are examined to determine if they have encouraged the entry of Australian universities into the New Zealand education market. Some general observations are also made about the nature of regulatory competition and the manner in which it influences the development of the international education export industry. [source] THE QUALITY OF INSTITUTIONS AND FOREIGN DIRECT INVESTMENTECONOMICS & POLITICS, Issue 3 2007CHRISTIAN DAUDE Using bilateral foreign direct investment (FDI) stocks around the world, we explore the importance of a wide range of institutional variables as determinants of the location of FDI. While we find that better institutions have overall a positive and economically significant effect on FDI, some institutional aspects matter more than others do. Especially, the unpredictability of laws, regulations and policies, excessive regulatory burden, government instability and lack of commitment play a major role in deterring FDI. For example, the effect of a one standard deviation improvement in the regulatory quality of the host country increases FDI by a factor of around 2. These results are robust to different specifications, estimation methods, and institutional variables. We also present evidence on the significance of institutions as a determinant of FDI over time. [source] INCOME DISTRIBUTION, SOVEREIGN DEBT, AND PUBLIC INVESTMENTECONOMICS & POLITICS, Issue 3 2005Cem Karayalçin We develop a political economy model of sovereign debt that shows that income inequality leads to popular pressures on the government to use foreign debt to finance a redistribution of income at the expense of productive public investment. Recognizing this fact, international lenders impose credit ceilings with the consequence that developing country borrowers invest less and grow slower. [source] CHINA BANS FOREIGN INVESTMENT IN TOBACCO MARKETADDICTION, Issue 5 2005Article first published online: 22 APR 200 No abstract is available for this article. [source] EXPERIMENTAL MANIPULATION OF SEXUAL SELECTION PROMOTES GREATER MALE MATING CAPACITY BUT DOES NOT ALTER SPERM INVESTMENTEVOLUTION, Issue 4 2009Helen S. Crudgington Sexual selection theory makes clear predictions regarding male spermatogenic investment. To test these predictions we used experimental sexual selection in Drosophila pseudoobscura, a sperm heteromorphic species in which males produce both fertile and sterile sperm, the latter of which may function in postmating competition. Specifically, we determined whether the number and size of both sperm types, as well as relative testis mass and accessory gland size, increased with increased sperm competition risk and whether any fitness benefits could accrue from such changes. We found no effect of sexual selection history on either the number or size of either sperm morph, or on relative testis mass. However, males experiencing a greater opportunity for sexual selection evolved the largest accessory glands, had the greatest mating capacity, and sired the most progeny. These findings suggest that sterile sperm are not direct targets of sexual selection and that accessory gland size, rather than testis mass, appears to be an important determinant of male reproductive success. We briefly review the data from experimental sexual selection studies and find that testis mass may not be a frequent target of postcopulatory sexual selection and, even when it is, the resulting changes do not always improve fitness. [source] HIGHWAY INFRASTRUCTURE INVESTMENT AND COUNTY EMPLOYMENT GROWTH: A DYNAMIC PANEL REGRESSION ANALYSIS,JOURNAL OF REGIONAL SCIENCE, Issue 2 2009Piyapong Jiwattanakulpaisarn ABSTRACT This paper uses recent advances in dynamic panel econometrics to examine the impact of highway infrastructure on aggregate county-level employment using data for all 100 North Carolina counties from 1985 through 1997. Results are compared to models that do not take endogeneity of highway investment and dynamics of employment adjustment into account. Fully specified dynamic models are found to give insignificant results compared to these other models. Thus, when these issues are properly modeled, the results show that improvements in highways have no discernible impact on employment. [source] BEYOND THE ECONOMIC CATALYST DEBATE: CAN PUBLIC CONSUMPTION BENEFITS JUSTIFY A MUNICIPAL STADIUM INVESTMENT?JOURNAL OF URBAN AFFAIRS, Issue 5 2007CHARLES A. SANTO ABSTRACT:,A host of empirical studies have indicated that stadiums and arenas have no significant impact on metropolitan area income or employment. In light of this evidence, the continued proliferation of public investment in sports facilities begs the question: Is there some other justification for this spending, or are policymakers simply acting against the public interest (either irrationally, or in response to political-economic influences)? A possibility that has not been fully explored is the notion that stadiums and teams generate tangible and intangible consumption benefits that could support some level of public investment. This research builds on a small foundation of literature that is moving discussion beyond the economic catalyst debate by providing an empirical measure of the consumption benefits that accrue to a region as the result of hosting a major league sports team. A contingent valuation survey is used to quantify the consumption benefits that would be associated with the relocation of a major league baseball team to Portland, Oregon. An empirical measure of the region's aggregate willingness to pay for the benefits associated with hosting a team is disaggregated into option and existence values, which can then be compared to any proposed level of public contribution to a new stadium. The findings indicate that consumption benefits would only support a capital investment of approximately $74 million; a figure far smaller than the typical stadium subsidy. The majority of projected benefits are associated with expected public goods and externalities, rather than anticipated attendance, indicating that an equitable financing plan should employ nonuser revenue sources. The level of projected benefits does not vary by locality within the metropolitan area, which argues for a regional cost-sharing approach. The willingness of residents to pay for stadium construction is tempered by a concern about other pressing social needs in the Portland area and a reaction to the current tax climate. [source] DUALITY IN OPTIMAL INVESTMENT AND CONSUMPTION PROBLEMS WITH MARKET FRICTIONSMATHEMATICAL FINANCE, Issue 2 2007I. Klein In the style of Rogers (2001), we give a unified method for finding the dual problem in a given model by stating the problem as an unconstrained Lagrangian problem. In a theoretical part we prove our main theorem, Theorem 3.1, which shows that under a number of conditions the value of the dual and primal problems is equal. The theoretical setting is sufficiently general to be applied to a large number of examples including models with transaction costs, such as Cvitanic and Karatzas (1996) (which could not be covered by the setting in Rogers [2001]). To apply the general result one has to verify the assumptions of Theorem 3.1 for each concrete example. We show how the method applies for two examples, first Cuoco and Liu (1992) and second Cvitanic and Karatzas (1996). [source] THE PROFIT,INVESTMENT,UNEMPLOYMENT NEXUS AND CAPACITY UTILIZATION IN A STOCK-FLOW CONSISTENT MODELMETROECONOMICA, Issue 3 2010Jean-Bernard Chatelain ABSTRACT This paper studies under which conditions the share of profit in value-added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock-flow consistent model. The efficiency of demand-side versus supply-side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply. [source] MONETARY POLICY WITH INVESTMENT,SAVING IMBALANCESMETROECONOMICA, Issue 3 2010Article first published online: 10 NOV 200, Roberto Tamborini ABSTRACT Financial instability is the new challenge for monetary policy. Most studies indicate that financial crises follow prolonged unwinding of investment,saving imbalances (ISI). These phenomena are not contemplated by the standard theoretical framework of continuous intertemporal equilibrium. This paper's aim is to take a first step into the analysis of monetary policy in the context of ISI. First, a dynamic model of a flex-price, competitive economy is presented where ISI are allowed to develop. Second, upon introducing different types of Taylor rules, some indications for the conduct of monetary policy emerge, which are at variance with the standard view. [source] STRATEGIC INVESTMENT IN A NEW MIXED MARKET WITH LABOR-MANAGED AND PROFIT-MAXIMIZING FIRMSMETROECONOMICA, Issue 4 2008Article first published online: 1 AUG 200, Kazuhiro Ohnishi ABSTRACT This paper examines a continuous-time mixed model of the strategic investment decisions of a labor-managed income-per-worker-maximizing firm and a profit-maximizing firm in a new mixed market and constructs a set of perfect equilibria of the continuous-time mixed model. The paper shows that there exists a particular equilibrium in which neither firm invests to its steady-state reaction curve. The paper also finds that the existence of the particular equilibrium depends on each firm's being able to respond quickly to its rival's investment and that the particular equilibrium is profitable for each firm. [source] RECONSIDERING THE INVESTMENT,PROFIT NEXUS IN FINANCE-LED ECONOMIES: AN ARDL-BASED APPROACHMETROECONOMICA, Issue 3 2008Till Van TreeckArticle first published online: 28 APR 200 ABSTRACT A Post-Keynesian growth model is developed, in which financial variables are explicitly taken into account. Variants of an investment function are estimated econometrically, applying the ARDL (auto-regressive distributed lag)-based approach proposed by Pesaran et al. (Journal of Applied Econometrics, 16 (3), pp. 289,326). The econometric results are discussed with respect to a remarkable phenomenon that can be observed for some important OECD countries since the early 1980s: accumulation has generally been declining while profit shares and rates have shown a tendency to rise. We concentrate on one potential explanation of this phenomenon, which is particularly relevant for the USA and relies on a high propensity to consume out of capital income. [source] CHAOTIC DYNAMICS OF FINANCING INVESTMENTMETROECONOMICA, Issue 1 2005Soumya Datta ABSTRACT The paper introduces the financial sector in a standard multiplier-accelerator framework by incorporating financial variables in the investment function. The resultant equation is similar in form to that of a logistic map, and hence behaves unpredictably under certain values of the parameters. Since monetary authorities have a large influence on many of these parameters, monetary policies are effective in both controlling investment and preventing or postponing a financial crisis. The monetary authorities, however, are also keen to play an additional role of keeping the system predictable. Under certain conditions, there could be a conflict between these two objectives,of preventing a financial crisis and keeping the system predictable. [source] "NET INVESTMENT" AND SUSTAINABILITYNATURAL RESOURCE MODELING, Issue 2 2003JOHN M. HARTWICK ABSTRACT. We comment on research showing when constant consumption implies zero "net investment." We also report on the use of ,net investment "or" genuine savings "as an indicator of sustainability in abstract economies, with exhaustible resources and inherent nonconstant consumption paths. In particular, the use of the current percentage change in" net investment "is reported on. [source] EMPIRICS OF CHINA'S OUTWARD DIRECT INVESTMENTPACIFIC ECONOMIC REVIEW, Issue 3 2009Yin-Wong Cheung It is found that China's investments in developed and developing countries are driven by different sets of factors. Subject to the differences between developed and developing countries, there is evidence that: (i) both market-seeking and resource-seeking motives drive China's ODI; (ii) Chinese exports to developing countries induce China's ODI; (iii) China's international reserves promote its ODI; and (iv) Chinese capital tends to agglomerate among developed economies but diversify among developing economies. Similar results are obtained using alternative ODI data. We do not find substantial evidence that China invests in African and oil-producing countries mainly for their natural resources. [source] ASSESSING THE IMPACT OF CHINA'S WTO ACCESSION ON INVESTMENTPACIFIC ECONOMIC REVIEW, Issue 3 2006Terrie L. Walmsley More recently, with China's accession to the World Trade Organization (WTO) a reality, FDI has once again picked up. This paper explores the linkage between WTO accession and investment in China. We find that investment and capital stocks increase substantially. Moreover, foreign ownership of Chinese assets doubles by 2020. Central to this increase is the expected catch-up in the productivity of the services sectors driven by reforms. These estimates are far larger than those predicted by earlier studies, which ignored the reforms affecting Chinese services sectors, and abstracted from international capital mobility. [source] IMPERFECT INFORMATION AND DIFFERENCES IN HOME OWNERSHIP INVESTMENTPACIFIC ECONOMIC REVIEW, Issue 4 2004Keiko Nosse Hirono We study the advantages accruing to buyers who have complete information and who can pay less than the equilibrium price if sellers undervalue their properties. The reduction in home ownership investment can increase consumption or investment in other assets. We develop an empirical model to capture the gain to such buyers. We estimate this to have been 12.6%,27.6% of the equilibrium price of houses at maximum in the Tokyo metropolitan area during the 1980s. [source] FOREIGN DIRECT INVESTMENT IN SUB-SAHARAN AFRICA: CHANGING LOCATION-SPECIFIC ADVANTAGES AS SIGNALS OF COMPETITIVENESSTHE DEVELOPING ECONOMIES, Issue 3 2009Frank L. BARTELS F21; R3; P42; F23 This paper uses longitudinal factor analysis of location-specific advantages that are relevant to the foreign direct investment decisions of multinational enterprises (MNEs) in sub-Saharan Africa (SSA) to signal changes in location competitiveness. A total of 1,216 responses by MNEs to a survey in 15 SSA countries are analyzed. We find that, first, over a three-year period (2002,5), MNEs perceive a positive change in the market-servicing environment in SSA. Second, MNEs find negative changes in SSA regarding the availability of input factors and characteristics of market demand. [source] PARTIAL DOLLARIZATION, EXCHANGE RATES, AND FIRM INVESTMENT IN PARAGUAYTHE DEVELOPING ECONOMIES, Issue 1 2009John SERIEUX E44; F41; G18; O16 Between 1989 and 1993 the government of Paraguay removed most restriction on financial transactions in domestic and foreign currency. The resulting financial deepening also involved partial dollarization. This investigation sought to determine whether partial dollarization led to negative balance sheet effects (in the form of reduced access to investment credit due to depreciation-induced reduction in firms' net worth as a result of currency mismatches on their balance sheets) and, therefore, to investment contractions, at the firm level, in the face of real currency depreciations. Support was found for that thesis. However, there was also evidence that banks expanded credit more rapidly in the face of currency depreciations. These apparent contradictory movements in credit and investment were shown to be a result of the absence of any clear causal link (in a Granger sense) between bank credit to the private sector and private investment in Paraguay. [source] FDI AND DOMESTIC INVESTMENT IN TAIWAN: AN ENDOGENOUS SWITCHING MODELTHE DEVELOPING ECONOMIES, Issue 4 2007Hui-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] DETERMINANTS OF FOREIGN INSTITUTIONAL INVESTMENT IN INDIA: THE ROLE OF RETURN, RISK, AND INFLATIONTHE DEVELOPING ECONOMIES, Issue 4 2004Kulwant RAI The present study examines the determinants of foreign institutional investments (FII) in India, which by January 2003 almost exceeded U.S. $12 billion. Given the huge volume of these flows and their impact on the other domestic financial markets, understanding the behavior of the flows becomes very important, especially at a time of liberalizing the capital account. By using monthly data, we found that FII inflow depends on stock market returns, inflation rates (both domestic and foreign), and ex-ante risk. In terms of magnitude, the impact of stock market returns and the ex-ante risk turned out to be the major determinants of FII inflow. Unlike some of the other investigations of this topic, our study has not found any causative link running from FII inflow to stock returns. Stabilizing stock market volatility and minimizing the ex-ante risk would help to attract more FII, an inflow of which has a positive impact on the real economy. [source] TECHNOLOGY INVESTMENT IN POLLUTION CONTROL IN SUB-SAHARAN AFRICA: EVIDENCE FROM NIGERIAN MANUFACTURINGTHE DEVELOPING ECONOMIES, Issue 4 2001John Olatunji ADEOTI First page of article [source] PRODUCTIVITY AND LABOUR DEMAND EFFECTS OF INWARD AND OUTWARD FOREIGN DIRECT INVESTMENT ON UK INDUSTRY*THE MANCHESTER SCHOOL, Issue 2 2009NIGEL DRIFFIELD We relate the technological and factor price determinants of inward and outward foreign direct investment (FDI) to its potential productivity and labour market effects on both host and home economies. This allows us to distinguish clearly between technology-sourcing and technology-exploiting FDI, and to identify FDI that is linked to labour cost differentials. We then empirically examine the effects of different types of FDI into and out of the UK on domestic (i.e. UK) productivity and on the demand for skilled and unskilled labour at the industry level. [source] FOREIGN DIRECT INVESTMENT AND DOMESTIC WAGES IN THE USA*THE MANCHESTER SCHOOL, Issue 1 2009SAIF S. ALHAKIMI High wages generally prevail in industries with substantial foreign direct investment (FDI) in developed countries. This study examines whether such wages are economically justified by revealing the effect of worker and industry characteristics on the FDI,domestic wage relationship. Findings show that while observed worker characteristics that command high wages help explain high FDI wages, the propensity for foreign owners to invest in capital-intensive industries contributes appreciably to the high wage paid to workers in industries with high levels of FDI. [source] WAGE GROWTH, HUMAN CAPITAL AND FINANCIAL INVESTMENT,THE MANCHESTER SCHOOL, Issue 6 2005SARAH BROWN The aim of this paper is to explore the relationship between wage growth, human capital and investment in financial assets at the individual level. We investigate this relationship using data from five waves of the British Household Panel Survey. We exploit panel data enabling us to determine the change in real wages experienced by individuals across four different time horizons, 1995,96, 1995,98, 1995,1700 and 1700,1. Our findings support a positive association between financial assets and wage growth with this relationship becoming more pronounced over time. In addition, our results suggest that investment in financial assets is positively associated with returns to human capital investment. [source] RETURNS TO EQUITY, INVESTMENT AND Q: EVIDENCE FROM THE UKTHE MANCHESTER SCHOOL, Issue 2005SIMON PRICE Conventional wisdom has it that Tobin's Q cannot help explain aggregate investment. However, the standard linearized present-value asset price decomposition suggests that it should be able to predict other variables, such as stock returns. Using a new data set for the UK, we find that Q has strong predictive power for debt accumulation, stock returns and UK business investment. The correctly signed results on both returns and investment appear to be robust, and are supported by the commonly used and bootstrapped standard error corrections, as well as recently developed asymptotic corrections. [source] ENVIRONMENTAL CONSCIOUSNESS, REPUTATION AND VOLUNTARY ENVIRONMENTAL INVESTMENTAUSTRALIAN ECONOMIC PAPERS, Issue 2 2009CHIA-YING LIU This note attempts to explore the driving force behind firms' voluntary environmental investment and to provide an alternative viewpoint to the traditional notion of environmental investment. We show that, if consumers are environmentally conscious, then firms' environmental investment will enhance their environmentally-based reputation and effectively stimulate consumer demand for the product. Thus, some firms will voluntarily engage in environmental investment. In addition, it is also found that when consumers become more environmentally conscious, in the steady state a high level of environmental investment may be associated with higher output. This result potentially provides an explanation as to why environmental quality may increase with output. [source] INVENTORIES AND FIXED INVESTMENTAUSTRALIAN ECONOMIC PAPERS, Issue 4 2004HONG BO We model fixed investment incorporating the inventory decision of the firm. Using Dutch listed nonfinancial firms during 1985,2000, we find that the inventory stock is negatively associated with fixed investment. The results suggest that the inventory stock may be used by the firm as a buffer in response to unexpectedly high demand. In addition, the firm may hold the inventory stock as a contingency substitute for the financial source of fixed investment. [source] | |||||||||||||||||||||||||||||||||||||||||||||||||