In this paper we search for pollution haven consistent evidence within China. Using a province level data set and three different measures of environmental stringency, we investigate whether inward foreign direct investment (FDI) is attracted to those regions with relatively low environmental regulations. Our results are consistent with pollution haven seeking behaviour by foreign investors. In...

Using recent data on propensity-score matched firms from the U.K manufacturing industry, the paper uncovers evidence that acquisition FDI is an important channel of direct technology transfer from foreign multinationals to domestic exporters. This is consistent with the recently developed theory by Helpman, Melitz and Yeaple (2002) which, because of sunk costs, predicts firms engaged in FDI act...

To many developing countries nowadays, Foreign direct investment (FDI) is regarded as an important factor that promotes growth. While traditional theory states that FDI helps increasing labor income by bringing capital to laborabundant countries, more recent works points to the possibility that type of capital in‡ow matters as well. Various studies of …nancial crisis highlight the stability of ...

Foreign Direct Investment (FDI) in developing countries is expected to foster technology transfer from foreign-owned to local firms. Using detailed panel data from Tunisian manufacturing firms, we show that technological spillovers generated by FDI, as a form of technology transfer, help firms move near the best practice frontier (production frontier) measured by the Schmidt and Sickles method....

This paper explores the link between foreign direct investment and trade in a panel of four countries that will accede to the European Union in 2004: Poland, Hungary, the Czech Republic and Slovenia. We augment standard demand-side export and import equations with a measure of FDI penetration. We compare results based on a panel mean-group estimator with a fixed-effects panel model that allows ...

Following the sharp appreciation of the yen after the Plaza Agreement of September 1985, Japan’s foreign direct investment (FDI) in East Asian countries increased rapidly: from around $US1 billion during the first half of the 1980s, it started to increase sharply in 1986 and hit a peak of around $US8 billion in 1989. This rapid increase then stopped as the appreciation of the yen slowed during ...

The aim of this paper is to examine the effects of the Chinese and Hong Kong stock markets on the levels of foreign direct investment into China’s regions, utilising dynamic panel estimation techniques. Using a Tobin’s Q measure, the results indicate that the effect is significant for both the Chinese and Hong Kong stock markets, but negatively signed, suggesting that FDI into China acts as a s...

Foreign direct investment (FDI) has boomed in post-reform India. Moreover, the composition and type of FDI has changed considerably since India has opened up to world markets. This has fuelled high expectations that FDI may serve as a catalyst to higher economic growth. We assess the growth implications of FDI in India by subjecting industry-specific FDI and output data to Granger causality tes...

Empirical studies quantifying the benefits of increased foreign direct investment (FDI) have been unable to provide conclusive evidence of a positive impact on the host country’s economic performance. I show that the lack of robust evidence is not inconsistent with theory, even if the gains to FDI openness are large. Anticipated welfare gains to increased inward FDI should lead to immediate dec...

WEI Y. H. D. Network linkages and local embeddedness of foreign ventures in China: the case of Suzhou municipality, Regional Studies. This paper analyses foreign direct investment (FDI) in Suzhou Municipality, China, known for the Sunan model of development based on township and village enterprises. Suzhou has been remaking its development model by attracting FDI and making itself an innovative...