SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Lile, Ronald D.; Powell, Mark R.; Toman, Michael.

The "Clean Development Mechanism" (CDM) contained in the December 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change provides, for the first time, the capacity for industrialized countries to claim credits for greenhouse gas (GHG) emissions reductions or offsets undertaken in cooperation with host developing countries. However, the Protocol provides no guidance on how these cooperative activities for GHG reduction and sustainable development would be undertaken in practice, including the particularly important issue of the relationship of the private sector vis-à-vis government institutions in designing, financing, and securing approval for jointly implemented GHG abatement projects. The pilot program for "Activities...

Impact of Foreign Intellectual Property Rights Protection on U.S. Exports and FDI

Palavras-chave: Climate change; Joint implementation; Environmental Economics and Policy; Q28; F21.

Ano: 1998

URL: http://purl.umn.edu/10868

Gu, Weishi.

This version of the paper is subject to changes.

Option Value, Policy Uncertainty, and the Foreign Direct Investment Decision

Palavras-chave: Export; FDI; Technology transfer; Intellectual property rights; GMM; International Development; International Relations/Trade; Research and Development/Tech Change/Emerging Technologies; C33; F21; F23; F14; O34; K33.

Ano: 2009

URL: http://purl.umn.edu/49414

Chen, Yu-Fu; Funke, Michael.

In this paper we analyse the impact of policy uncertainty on foreign direct investment strategies. The paper follows the real options approach, which allows to investigate the value to a firm of waiting to invest and/or disinvest, when payoffs are stochastic due to political uncertainty and investments are partially reversible. Across the board we find that political uncertainty can be very detrimental to FDI decisions.

Determinants of Foreign Direct Investment of OECD Countries 1991-2001

Palavras-chave: Real options; Investment; Foreign Direct Investment; Political Uncertainty; International Relations/Trade; D81; D92; E22; F21.

Ano: 2003

URL: http://purl.umn.edu/26373

Gast, Michael W..

Using a fixed-effects panel data approach, FDI flows of 22 OECD countries are explained by gravity equations over the period 1991-2001. It is distinguished between all available observations, Intra-EU25 observations only, and observations not belonging to the EU25 area in order to control for EU-specific effects. Regressions are repeated with exports as dependent variable in order to capture diverging influences for trade flows. Changes in total market size and relative market size are important factors that lead both FDI and exports in the same direction. However, relative market size is only significant in the FDI equation when variation between the EU25 area and other investment is taken into account, thus indicating a concentration of FDI within...

Assessing the Constraints and Opportunities for Private-Sector Participation in Activities Implemented Jointly: Two Case Studies from the US Initiative for Joint Implementation

Palavras-chave: Foreign direct investment and international trade; Multinational firms; Model with panel data; Agricultural Finance; F21; F23; F14; C23.

Ano: 2005

URL: http://purl.umn.edu/24595

Powell, Mark R.; Lile, Ronald D.; Toman, Michael.

This paper assesses the constraints and opportunities for private-sector participation in Activities Implemented Jointly under the United Nations Framework Convention on Climate Change. After some initial background, the discussion turns to the United States Initiative on Joint Implementation (USIJI) - its objectives, proposal review and evaluation criteria, and a classification of project proposals by project type and stage of development. Two USIJI projects are developed as case studies. One case is an energy end use project that has gained formal acceptance and financing. The other case is an energy production project proposal that has not secured acceptance or financing. In both cases, transaction costs were substantial, and project proponents regarded...

The Effect of Currency Crises on Foreign Direct Investment Activity in Emerging Markets

Palavras-chave: Climate change; Joint implementation; Public Economics; Q28; F21.

Ano: 1997

URL: http://purl.umn.edu/10555

India's Reform of External Sector Policies and Future Multilateral Trade Negotiations

Soliman, Mohamed M..

Despite the ample literature on currency crises, the effect of currency crises on foreign direct investment FDI activity has been largely unexamined. This paper tests the sensitivity of three measures of U.S. outbound non-bank FDI activity to currency crises in 21 emerging economies. The findings of this analysis suggest that contrary to the common perception, currency crises do not seem to have a negative effect on FDI activity in the crisis economy. Indeed, we find some evidence that currency crises may increase FDI activity in the affected country. These results underline the stable nature of FDI relative to other types of international capital flows and as a safer mode of financing for emerging economies.

Tipo: Journal Article

Palavras-chave: Foreign direct investment; Currency crises; Multinational corporations; Financial Economics; International Relations/Trade; F21; F31.

Ano: 2005

URL: http://purl.umn.edu/50276

Srinivasan, T.N..

I evaluate India's transition from an inward-oriented development strategy to greater participation in the world economy. While tariff rates have decreased significantly over the past decade, India is still one of the more autarkic countries. Despite improvement over the past in export performance, India continues to lag behind its South- and East Asian neighbors. Second, official debt flows have been largely replaced by foreign direct investment (FDI) and portfolio investment in the 1990s. India's ability to attract FDI would be greatly enhanced by further reforms. I argue that India's participation in a future round of multilateral trade negotiations would benefit India. I outline the further reforms most needed: reform of labour and bankruptcy laws,...

The Effect of Environmental Regulation on the Locational Choice of Japanese Foreign Direct Investment

Palavras-chave: India; Antidumping; Developing countries; Economic reform; Export performance; Foreign direct investment; Intellectual property rights; Multilateral trade negotiations; Quantitative restrictions; Real exchange rate; Tariff and non-tariff barriers; World Trade Organization; International Relations/Trade; F13; F14; F15; F21; F35; H54; K31; O34; O38; O53; P11.

Ano: 2001

URL: http://purl.umn.edu/28428

Kirkpatrick, Colin; Shimamoto, Kenichi.

This paper assesses the impact of environmental regulation in host countries on Japanese foreign direct investment (FDI) decision-making. It tests the pollution haven hypothesis using data on national environmental regulation standards and Japanese inward FDI in five dirty industries (iron and steel industry, non-ferrous metals industry, chemicals industry, paper and pulp industry, non-metallic products industry). The results do not support the pollution hypothesis. On the contrary, inward Japanese FDI appears to be attracted to countries which have committed themselves to a transparent and stable environment regulatory environment, suggesting that the quality of the regulatory framework in terms of its certainty and transparency has a greater influence on...

Police-powers, regulatory takings and the efficient compensation of domestic and foreign investors

Palavras-chave: Environmental regulation; Foreign direct investment; Japanese multinationals; Environmental Economics and Policy; International Relations/Trade; Q56; F21.

Ano: 2005

URL: http://purl.umn.edu/30584

Aisbett, Emma; Karp, Larry S.; McAusland, Carol.

In customary international and public law, “takings” resulting from regulations designed to protect the public good are generally excluded from compensation rules; this exclusion is known as a police powers carve-out (PPCO). Increasingly, this PPCO is being challenged, particularly in international investment law. This paper analyzes the efficiency properties of a PPCO in a model with endogenous regulation, investment and entry. We design a one-parameter family of carve-out/compensation schemes that induce efficient regulation and firm level investment even when the regulator suffers fiscal illusion and the social benefit from regulation is private information to the regulator. We show that offering a carve-out reduces the subsidy to risky industry...

Location Preference for Risk-Averse Dutch Dairy Farmers Immigrating to the United States

Palavras-chave: Regulatory takings; Expropriation; Environment; Foreign direct investment; NAFTA; Environmental Economics and Policy; Research Methods/ Statistical Methods; F21; H4; K3; Q58.

Ano: 2008

URL: http://purl.umn.edu/42842

Richardson, James W.; Herbst, Brian K.; Duncan, Anthony; den Besten, Mark; van Hoven, Peter.

Increased environmental regulations and a milk quota that restricts growth have increased the interest in immigration to the United States by Dutch dairy farmers. A risk-based economic analysis of 23 representative U.S. dairy farms versus a representative Dutch farm shows that risk-averse Dutch dairy farmers would prefer to liquidate their dairy farms and invest in a large dairy in Idaho or north Texas. The risk ranking suggested that continuing to farm in the Netherlands rather than immigrating to the United States is preferred over only two of the 23 U.S. representative farms analyzed.

Tipo: Journal Article

Palavras-chave: Dairy relocation; Production economics; Ranking risky alternatives; Risk analysis; F21; F22; Q12; Q14; E37; D81.

Ano: 2007

URL: http://purl.umn.edu/37061

Environmental Regulation and the Export Dynamics of Energy Technologies

Costantini, Valeria; Crespi, Francesco.

The pollution haven hypothesis affirms that an open market regime will encourage the flow of low technology polluting industries toward developing countries, due to potential comparative advantages related to low environmental standards. In contrast, the hypothesis suggested by Porter and van der Linde claims for a competitive dynamic behaviour by innovating firms, allowing a global diffusion of environmental-friendly technologies. Environmental regulation may represent a relevant mechanism through which technological change is induced. In this way countries subject to more stringent environmental regulations may become net exporters of environmental technologies. This paper provides new evidence on the evolution of export flows of environmental...

Aid, Governance, and Private Foreign Investment: Some Puzzling Findings and a Possible Explanation

Palavras-chave: Environmental Regulation; Trade and Environment; Energy Technologies; Environmental Economics and Policy; F18; F21; Q43; Q55; Q56.

Ano: 2007

URL: http://purl.umn.edu/9550

Harms, Philipp; Lutz, Matthias.

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries' institutional environment, we find that, evaluated at the mean, the marginal effect of aid on private foreign investment is close to zero. Surprisingly, however, the effect is strictly positive for countries in which private agents face a substantial regulatory burden. After testing the robustness of this result, we offer a theoretical model that is able to rationalize our puzzling observation.

Vertical Differentiation and Credence Goods: Harmonized Labeling and Gains from International Integration

Palavras-chave: Aid; Foreign Direct Investment; Institutions; International Relations/Trade; F35; F21; O16; O19.

Ano: 2003

URL: http://purl.umn.edu/26128

Sheldon, Ian M.; Roe, Brian E..

Using a model of vertical product differentiation, we show under what institutional circumstances welfare gains will be maximized as economies integrate and harmonize labeling and certification policies for credence goods. Specifically, we show that harmonized mandatory, exclusive discrete labeling will not maximize the gains from economic integration, i.e., the choice of labeling regime can have a negative effect on market structure if firms choose to exit, reducing the range and quality of goods in the integrated market.

Tariff Liberalization, Wood Trade Flows, and Global Forests

Palavras-chave: Vertical differentiation; Credence goods; Harmonized labeling; Economic integration; International Relations/Trade; F12; F21; L13.

Ano: 2008

URL: http://purl.umn.edu/6340

Sedjo, Roger A.; Simpson, R. David.

This paper examines the question of the likely effects on global forests of a further reduction in wood products tariffs including both solid wood products and pulp and paper, as has been proposed to the World Trade Organization (WTO) by the Asia Pacific Economic Community (APEC). The tariff reductions would be an extension of the tariff reductions associated with the Uruguay Round (Federal Register 1999). The questions include both how international trade is likely to change in response to further tariff reduction and also the implications for timber harvests and forests generally of such trade liberalization in the various forest regions. The paper finds that the evidence suggests further reductions in tariffs on forest products are likely to generate...

The Contribution of Foreign Direct Investment to China's Export Performance: Evidence from Disaggregated Sectors

Palavras-chave: International trade; Tariffs; Forest; Forest products; World Trade Organization; Resource /Energy Economics and Policy; F01; F21; F13; Q23.

Ano: 1999

URL: http://purl.umn.edu/10557

Gu, Weishi; Awokuse, Titus O.; Yuan, Yan.

There has been a long debate in the theoretical and empirical economic circles on how host country's exports respond to inward foreign direct investment (FDI). This paper examines whether FDI stimulates export performance of the recipient countries using the case of China. It contributes to the literature by investigating the relationship of FDI and export performance using disaggregated manufacturing sectors from 1995 to 2005. The empirical results suggest that FDI flows into China have statistically significant and positive effects on its exports and it exhibits differences across sectors.

Local Communities in front of Big External Investors: An Opportunity or a Risk?

Palavras-chave: Export performance; Foreign direct investment; China; Panel data; International Relations/Trade; F21; F14; C33.

Ano: 2008

URL: http://purl.umn.edu/6453

Antoci, Angelo; Russu, Paolo; Ticci, Elisa.

In the current age of trade and financial openness, local economies in developing countries are becoming increasingly exposed to external investments. The objective of the proposed two-sector model with environmental externalities is to provide an insight into the interaction between external investors and local communities with a focus upon the different strategies and income sources available to each category. In this context, analysis suggests that environmental regulations and incentives offered in order to attract external capital investment (whether foreign or national) may have an un-uniform impact on the two typologies of actors.

Multinational Activity in a Macroeconomic Model of the Small Open Economy

Palavras-chave: Foreign Direct Investments; Environmental Negative Externalities; Structural Changes; Poverty Alleviation; International Development; F21; F43; D62; O11; O13; O15; O41; Q20.

Ano: 2010

URL: http://purl.umn.edu/98093

Otto, Alkis Henri.

We study the effects of FDI and increasing multinational activity utilizing a macroeconomic two-sector model of the small open economy with flexible exchange rates and perfect capital mobility. The focus is on horizontal greenfield investment and its impact on production, exchange rates, trade, and welfare. In the host country, an increase in multinational activity harms the established industries. Nevertheless it increases welfare. In the home country, an increase in multinational activity lowers domestic output of the established industries too and, thereby, decreases welfare.

Trade costs and the pattern of Foreign Direct Investment: evidence from five EU countries

Palavras-chave: Foreign Direct Investment; Multinational activity; Welfare effects; Macroeconomic effects; International Relations/Trade; F21; F41.

Ano: 2004

URL: http://purl.umn.edu/26242

Cardamone, Paola; Scoppola, Margherita.

According to the theoretical models of the multinational enterprise, trade costs play a fundamental role in determining the pattern of foreign direct investment (FDI). The aim of this paper is to assess the impact of trade policies on the outward stocks of FDI of the EU. We estimate a model based on the knowledge-capital theory of the multinational enterprise over the period 1995-2008 by using a sample of five EU countries and 26 partner countries. We consider, first, manufacturing sector as a whole and, then, six manufacturing industries defined at the two-digit level of the NACE classification. Explanatory variables include an index of applied bilateral tariffs and a dummy to capture the presence of Bilateral Investment Treaties (BITs). From an...

Tipo: Presentation

Palavras-chave: FDI; Trade protection; Knowledge-capital model; Dynamic panel data; International Relations/Trade; F15; F21; F23; C33.

Ano: 2012

URL: http://purl.umn.edu/123993

Testing Uncovered Interest Parity at Short and Long Horizons

Chinn, Menzie D.; Meredith, Guy.

The unbiasedness hypothesis - the joint hypothesis of uncovered interest parity (UIP) and rational expectations - has been almost universally rejected in studies of exchange rate movements. In contrast to previous studies, which have used short-horizon data, we test this hypothesis using interest rates on longer-maturity bonds for the G-7 countries. The results of these long-horizon regressions are much more positive - the coefficients on interest differentials are of the correct sign, and almost all are closer to the predicted value of unity than to zero. These results are robust to changes in data type and to base currency (i.e., Deutschemark versus US dollar). We appeal to an econometric interpretation of the results, which focuses on the presence of...

Trade costs and the pattern of Foreign Direct Investment: evidence from five EU countries

Palavras-chave: International Investment; Long-Term Capital Movements; Foreign Exchange; Open Economy Macroeconomics; Financial Economics; F21; F31; F41.

Ano: 2000

URL: http://purl.umn.edu/26355