This paper assesses the effect of openness on corruption, using foreign direct investment (FDI) inflows as a measure of openness, after trade intensity is accounted for. We use a broad cross section of countries over the period 1970 to 1994 and address the issue of causality with a new set of instrumental variables relying on geographical and cultural distance between the FDI exporting and reci...

According to the pollution haven effect (PHE) mobile capital responds to environmental regulation by moving from countries with high regulation to those with low regulation. Previous tests of the PHE have focused on host country regulation effect. This study also examines the effect of home country regulation on foreign direct investment (FDI). I use a panel of 28 OECD countries for 1981-2000 t...

This study analyzes how small and medium-sized enterprises’ (SMEs)R&D and foreign direct investment (FDI) affect their technical efficiencies in an environment of globalized production, in order to complement previous researches. Our theoretical proposition suggests that unless the substitution effect dominates the magnification effect, FDI will induce more R&D activities and hence will improve...

In this work, different procedures for sensor Fault Detection and Isolation (FDI) applied to a simulated model of a commercial aircraft are presented. The main point of the paper regards the design of two FDI schemes based on a linear Polynomial Method (PM) and the NonLinear Geometric Approach (NLGA). The obtained results highlight a good trade–off between solution complexity and achieved perfo...

FDI is, however, risky for the investing firm and often controversial for the host. So while some states and regions in the U.S. have enthusiastically embraced FDI as part of their economic development strategies, other states have not. Successes around the country have led to reconsideration of the previous views of FDI, and most states are now actively seeking investment from overseas, many w...

As an increasingly large link between China and the rest of the world, as well as a key component of economic policy, foreign direct investment (FDI) is an investment made by a party in one country in business interests in another country. It represents the influx of both capitalism and globalism in China. This paper investigates the link between FDI and regime stability by examining how FDI ha...

Prior literature on foreign direct investment (FDI) spillovers has mainly focused on how the presence of FDI affects the productivity of domestic firms. In this study, we advance the literature by examining the effect of the diversity of FDI country origins on the productivity of domestic firms. We propose that the diversity of FDI country origins can facilitate FDI spillovers to domestic firms...

Previous empirical work on the link between domestic and foreign investment provides mixed results which partly depend on the level of aggregation of the data. We argue that the aggregated home country implications of foreign direct investment (FDI) cannot be gauged using firm-level data. Aggregated data, in turn, miss channels through which domestic and foreign activities interact. Instead, in...

Based on a panel data analysis of 164 countries from 1996 to 2006, we examine the impact of institutional quality on foreign direct investment (FDI) levels and volatility. We find that good institutional quality matters to FDI. We provide evidence that institutional quality has a positive and significant effect on FDI. More specifically, we find that a one standard deviation change in instituti...

The expansion and integration of global financial capital markets has led to the changes in the composition of capital flows of the developing economies. FDI has gained wide recognition as a striking measure of economic growth and development in both developed and developing countries. This study intends to evaluate the trends and patterns of FDI inflows into India. The relationship between FDI...