T he importance of foreign direct investment (FDI) in developing countries has begun to spread very rapidly, especially after the transition of command economies countries into open markets. Many countries see attracting FDI as an important element in their strategy for economic growth because FDI is widely regarded as an amalgamation of capital, technology, marketing, and management...

Using detail published firm-level panel data from the Taiwan Economic Journal (TEJ), this study measures the effect of foreign ownership on wage dispersion. The estimation has been done by the Ordinary Least Squares (OLS) technique. It finds that current R&D and capital expenditures lead to decreased wage dispersion in response to a rise in the foreign investment in Taiwan ROC. However, the lag...

This article examines how Chinese foreign aid interacts with the quality of host country's governance in shaping state-owned enterprises' (CSOEs') direct investment (FDI) Africa. By analyzing firm-level greenfield FDI data CSOEs between 2003 and 2014 distinguishing China's official development assistance less concessional forms aid, we reveal two main findings. First, negatively affects CSOEs' ...

China is one of the most popular investment destinations in the world. This paper argues that FDI inflows into China are in fact driven by some fundamental inefficiencies in the Chinese economy. Specifically, one of the inefficiencies has to do with a high level of fragmentation of both goods and asset markets. This fragmentation increases demand for FDI both because market fragmentation makes ...

In this paper, we present a model for analyzing foreign direct investment opportunities by evaluating related projects. An integrated approach employing the analytic hierarchy process (AHP) and simulation is used to rank the projects. This methodology is applied to assess the industrial investment projects that were proposed in the “’95 China’s Tumen River Area International Investment and Busi...

nowadays, countries realize that without having knowledge and technology, they may not export advantaged goods to the global market. generally, technology and knowledge accumulation play vital role for reaching high economic growth rate and economic development. the statistical reports show that iran has not been successful in the high-tech export area; base on those reports, iran’s high-tech e...

While the problems many African countries face are widely known and dominate the perceptions of the continent as a whole, there are a number of positive aspects that, although highly relevant for foreign investors, are little known. As in other continents, there are profitable investment opportunities to be found in most African countries. Foreign Direct Investment (FDI) is welcomed and, indeed...

This paper examines the bilateral, source and host factors driving portfolio equity investment across a set of countries using International Monetary Fund’s new dataset on international equity holdings at the end of 1997, 2001 and 2002. The paper finds that the bilateral equity investment is strongly correlated with the underlying patterns of trade in goods and services. The information asymmet...

The purpose of this paper is to investigate the role of exchange rate uncertainty in determining foreign direct R&D investment into the UK. We estimate an econometric model of FDI in R&D, using a panel of manufacturing industries. Our results suggest that an increase in the volatility of the euro-dollar exchange rate tends to relocate R&D investment from the Euro Area into the UK. A rise in the...

This paper studies the entry decision of a multinational enterprise into a foreign market. Two alternative entry modes for a foreign direct investment are considered: Greenfield investment versus acquisition. In contrast to existing approaches, the acquisition price and the profits under both entry modes are endogenously determined. Interestingly, we find that the optimal entry mode decision is...