In recent years, developing countries like Nigeria with large human and natural resources have attracted huge investment leading to a rise in foreign into the Nigerian economy. To create conditions that would attract more Foreign Direct Investment manufacturing subsector, right infrastructure must be put place. This study examined relationship between Investment, output Nigeria. Time series dat...

This paper analyses the role of product differentiation in firms’ choices between exporting and foreign direct investment as ways to supply overseas markets. When the degree of product differentiation is exogenously fixed, we show that the overseas firm favors exporting at low and high degrees of product differentiation while local production is favored at intermediate values: there can be a “d...

Foreign Direct Investment, Agglomerations and Demonstration Effects: An Empirical Investigation* Many previous studies have shown that the localization of firms can be an important factor in attracting new foreign direct investment into a host country. What has been missing in this literature thus far, however, is an investigation into the reasons why industry clusters attract firms. We disting...

Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers How much do developing countries benefit from foreign investment? We contribute to this question by comparing the employment and wage practices of foreign and domestic firms in Brazil, using detailed matched firm-worker panel data. In order to control for unobserved worker differences, we e...

The PaPer examines the shifts in attitudes to foreign investment; charts the dimensions and composition of capital flows to develeping countries; outlines existing barriers and the effects of taxation on these flows, and critically examines the demand for their regulation in the light of the Asian crisis. JEL classification: F3, F21, F23 Address: Dept. of Economics, UCLA, 405 Hilgard Avenue, Lo...

T he impact of FDI on economic growth is neither homogeneous, nor completely clarified. Due to accumulation of capital in the host economy, FDI is expected to encourage the incorporation of new inputs and technologies in the process of production. However, the impact of FDI on economic growth is not so shaped up in empirical studies. Accordingly, while some studies remarked a positiv...

The purpose of this paper is to determine whether foreign bank presence has had a stabilizing or destabilizing effect on the Latin American banking sector. Our results suggest that, while "brick and mortar" operations of foreign banks in Latin American countries contribute to the reduction of the probability of a banking crisis, there is no significant effect of direct foreign lending initiated...

As more manufacturing is moved to the developing countries, policy makers become concerned with the environmental consequence. Relatively lenient environmental policies in the developing countries may give them a comparative advantage in pollution intensive goods, and openness to trade and foreign direct investment might harm the host country’s environment. This study examines the relationship ...