The foreigninvestments represent a launching gate through devel- opment for the south-eastern European countries. These countries have a great capacity to absorb foreign capital and to transform it in a source of higher wealth. Until the optimum level is achieved, the legal, tax, monetary measures should be focusedon the support of foreign invest- ments. When this optimum level is achieved the state’s policies start to be focusedon supporting other sectors of the macroeconomic subsys- tems in order to finally obtain future wealth and economic growth.
The term “FDI incenives” covers iscal and inancial beneits. Fiscal incenives include full or parial holidays from tax; reducions in the standard rate of tax; tax reducions condiional on reinvestment of proits; investment allowances and investment tax credits; accelerated depreciaion of assets; preferenial treatment of proit on exports; tax deducions based on speciic types of expenditure (e.g. R&D); and exempions from import duies on capital goods or other inputs (list adapted Financial incenives include: cash grants related to the value of assets invested or numbers employed or training costs; provision of subsidized faciliies such as factories or sites; provision of infrastructure related to new faciliies, such as roads and links to uiliies; and direct subsidies 16 .
Foreign investors are already present in sectors where in Croatia they can achieve the greatest profits, such as the financial sector, telecommunications and trade. These sectors and activities are already occupied but in the manufacturing sector there is almost impossible to attract both foreign and domestic investors. The reason is mostly the unfavorable exchange rate of the HRK 2 , which favors imports rather than exports, high taxes, expensive labor compared to other transition countries, etc. These conditions are extremely unfavorable because they don’t create new added value, or equity, and the economy is oriented to import. Most of the production relies on the domestic market. Therefore for most investors it is more profitable to invest their capital in other transitional countries where operating costs lower, there are larger markets, monetary and fiscal policy is more favorable. Such bad conditions for foreigndirectinvestments will be very difficult to change in the future. Valuation of potential foreigndirectinvestments in Croatia reveal that a further increase in incoming foreigndirectinvestments can only be achieved through the further economic growth and increasing trade openness, therefore, the efforts in the field of economic policy should be focusedon creating the conditions for sustainable economic growth which would reduce the development gap to potential foreign countries which are willing to invest.
organization theory. Buckley and Casson (1976) moved the discussion in yet another direction by proposing what has is now known as internalisation theory through their study of why large firms internalize business operations outside of production such as marketing, training, research and development, and involvement with financial markets and how these functions can be addressed through investments abroad. Finally, the foundation of the more modern body of literature focusedon the study of foreigndirect investment was outlined in the eclectic paradigm outlined in Dunning (1977). Dunning proposes that a firm will directly invest in a foreign country only if the firm, first, possesses an owner specific asset which gives it an advantage over other firms; second, if the firm internalizes these assets rather than contracts them out; and third, that some sort of advantage exists for setting up shop in a foreign country rather than relying on exports from said country alone. Dunning’s work attempts to collate the ideas of Hymer, Vernon, Caves, Buckley and Casson into one overarching theory and sets the stage for the analysis and study to move into the direction it has taken today.
value of the privatised companies. The south-eastern countries did not have the internal financing power to create huge local investments, but attracted foreign ones to purchase assets or business previously owned by the state.
Foreigndirect investment (FDI) is assumed to be benefiting a poor country like Jordan. Jordan offers attractive investment opportunities for foreign companies and has adopted a number of policies to attract foreigndirect investment into the country. This paper focuses on the FDI-led growth hypothesis in the case of Jordan. The study is based on time series data from 1990 to 2009. The econometric framework of ciontegration and error correction mechanism was used to capture two way linkages between variables interest. An econometric result shows that FDI inflows do not exert an independent influence on economic growth. And also the impact of DIN and TP on GDP growth rate is found to be positive. Based upon these results the ultimate objective of the Jordan government is to attract FDI for development an appropriate policy mix is necessary to be taken in the future.
First of all, its political implications, there is the inherent difficulty of justifying the identification of the figure of the hegemon that constructed and maintains the current IIA regime. KEOHANE and NYE (2011, p. 44) argue that the USA are the hegemon, due to a consistent and explicit will to use the power to defend its political economic view of foreign trade and investment, understood by DUGAN et al. (2008) as the main proponent of the Calvo doctrine. Despite the fact that authors like SALACUSE (2010, pp. 432-433) argue that the history of international investment reveals that many capital-exporting countries, through their individual and largely uncoordinated actions, have been active in its creation and that no particular country has acted as a hegemon in its development and maintenance in order to advance its own particular interests and gain an advantage over other countries, one can take a closer look at the major users of the IIAs and its remedy mechanisms like the ISDS (Harten and Malysheuski, 2016) .
Foreigndirect investment is a method to finance domestic investment especially for the countries that don't have enough capital, promotes advanced technology and management and consequently stimulates the growth. Borensztein et al. (1995) have shown that the economic growth increases not only by accumulating capital but also through high efficiency of this form of investment. Also, Rana and Dowling (1988) have pointed out that foreign capital inflows and export are two important determinants that explain economic performance. They believe that FDI facilitates technology transfer and consequently increases capital efficiency and the growth. Also, according to Wang and Blomström (1992) the effect of FDI on the growth depends positively on the substitution of domestic and foreign technologies and educational level in home country.
As we have shown, improvements in enforcement conditions have important direct effects on the domestic interest rate and these movements play a critical role in endogenous unfolding. In the case of improvements in external enforcement conditions, we verify a decrease in the interest rate, which is followed by a rise in extensive margin of firms, a movement of capital stock towards the tradable goods production and an exchange depreciation. In contrast, increases in domestic collateral parameters lead to a raise in the domestic interest rate, resulting in a significant rise in the overall productivity and an exchange appreciation. Nevertheless, it is verified in both cases an increase in total production, capital accumulation and foreign debt, as empirically supported. Considering a general improvement in enforcement conditions, the effect of internal financial development prevails in equilibrium. As argued above, it has crucial implications for sectoral and aggregate variables that must be considered when analysing the economic effects of financial development. In order to quantify these movements, we calculate the impact of an increase of five percent in both collateral parameters. In this case, the real GDP of Argentina raises 5.7% and there is a real exchange appreciation of 3.1%. The movement in its total factor productivity
is threatened. However, it has to be stressed out that, in some cases, terrorism could affect positively on FDI, performance of some industrial sectors (maufacture of gun and armory) The application of the results of this research may contribute to a clearer perception of the impacts of terrorism on FDI. Ignoring the possibilities of occurrence of terrorist activities may have a long-term negative impact on the economic situation in a country. Terrorism has negative effects on the economic growth but this effect is depending about the social, political structure of observed country. In some cases of countries which unsucessfully confront to the effects of terrorism for periods of time, there is no relationship between terrorism and investments. Anyways, it cannot be applied on the EU case. Interruption of FDI inlow as one of the most important factors of savings affects slowdown of economic growth. Moreover, terrorism can be manifested through negative overlow effects on neighbouring countries by substantial withdrawal of capital. Ultimately, economic growth slows down, not only in one country, but also throughout the region.
In this paper, we use aggregate data on the drivers of China’s FDI into Africa and compare them to those of global FDI into Africa to better understand China’s engagement with the continent. Specifically, we consider the role of macroeconomic stability, degree of openness, oil as well as that of the rule of law and accountability. The inclusion of the two latter variables is motivated by many observers’ contention that China disregards these important institutions when pursing its investment strategy. Indeed, China explicitly acknowledges that it is not its business to interfere in domestic concerns. As early as 1964, the Chinese premier Zhou Enlai defined the “Eight Principles for China’s Aid to Foreign Countries”. One of these, states that “in providing aid to other countries, the Chinese Government strictly respects the sovereignty of the recipient countries”. As such, we want to know whether there is empirical evidence for this contention.
The flows of foreigninvestments in Brazil starting from the 1990s have called attention due to the magnitude of the invested value, the prevalence of properties acquisitions as a preferential way of carrying out these investments, and for the primacy of the operations involving rivals companies. This article searches for an explanation for the cycle of foreigndirect investment flows, which is happening in Brazil. Arguments were reconsidered on the existence of sole assets and the advan- tages of property and control as a basis for carrying out overseas investments, and to explicit their link with the M&As.
Nevertheless, the variable inflation is not statistically significant in the first 2 lags, but is in the 3 rd one, which means foreign investors tend to pay attention and have their investment decisions influenced by this variable within a distance of 3 years. Also, in the long-run estimates, the statistically significance of this variable corroborates the fact that foreign investors are more influenced by a long past values and variation in this variable than really in the short-run. Despite the variable’s sign in the 3 rd lag (only lag where inflation is statistically significant) is the opposite of the expectations, since it can be considered as a starting observation in the long-run, the long-run estimations reflect the inflation’s truly impact, which is the expected one. Yet, the unexpected result is not new, as other studies (such as in Ezeoha (2011) and Saleem (2013)) have shown unexpected similarities regarding the relationship between inflation and FDI, considering that despite their unexpected result, it is plausible that a high inflation rate may occur with rising level of economic activities.
Before exploiting studies related to each of the four types of risks that we are studying, we can conclude that country risks that stem from government actions such as breach of contractual agreements, changes in law and regulations or the outright nationalization of foreign-owned property have an adverse affect on FDI (Asiedeu et al., 2008). In addition, these types of risk have a more profound effect on FDI than other types of investments (e.g., portfolio investment). One reason is that FDI is partially irreversible – many of the costs associated with FDI are sunk and therefore cannot be recovered if disinvestment occurs. Asiedu at al. (2008) derive three main results: (i) the threat of expropriation leads to underinvestment; (ii) the optimal level of FDI decreases as the risk of expropriation rises; (iii) under certain conditions, aid mitigates the adverse effect of expropriation risk on FDI.
changes in the underlying brain activity (e.g.  for learning of emotionally negative stimuli; ). Also, another possible explanation for the absence of behavioural effect may be that subjects were tested on the next day in the Peigneux et al. study , whereas testing occurred 3 days later in the current study, likewise in Orban et al. , due to the need for TSD subjects to recover from sleep deprivation before testing. This may have leaved open the door for alternative processes of consolidation to take place, either with the passage of time or during the two recovery nights. We can also surmise that the restructuring of brain activity during sleep strengthens the memory traces by establishing or reinforcing hippocampo-cortical or cortico-cortical connexions and, therefore, mainly makes memories more resistant to interference . In this perspective, it is possible that a behavioural effect of sleep manipulation would have been seen if our subjects had been exposed to a novel, interfering environment just before retesting. Finally, another plausible explanation may consider the ecological validity of our navigation task, as compared to the material commonly used in the verbal domain, where lists of Table 5. Post-training activity during the Alternate condition.
For small countries like Portugal, born global firms play a key role in the enhancement of small countries’ competitiveness in the international arena. Portugal’s 2010 total entrepreneurial activity (TEA) rate was 4.5%, the lowest of innovation-driven small countries with similar GDP per capita, such as Greece, Israel, Republic of Korea and Slovenia. According to the 2010 Global Report (GEM), Portugal has the second largest gap between perceived capabilities and perceived opportunities (31.8%), only overcome by Greece (36.3%). Interestingly, when compared to the countries mentioned above, Portugal and Slovenia have the lowest rates of fear of failure (around 28.6%) but also low entrepreneurial intentions (8.8%), which is somehow ambiguous. On the contrary, Israel has 46% of fear of failure but a truly high rate of entrepreneurial intention, 14.1%. In addition, both gender types of Portuguese entrepreneurs are more likely to have formal education than the national population as a whole (GEM, 2010). Accordingly,
Com o crescente prestígio da escola novo-clássica, em 1978 Lucas e Sargent já se sentiam suficientemente confiantes para contemplar a vida “After Keynesian Macroeconomics” e, respondendo a Tobin (1977), que arguira “How Dead is Keynes?”, Lucas anunciaria, em 1980, “The Death of Keynesian Economics”. A comemoração, contudo, mostrar-se-ia prematura, não apenas devido às deficiências internas da macroeconomia novo-clássica, mas também da aparente falta de ade- rência dos modelos à realidade empírica (McCallum, 1986: 400). Em muitos casos, por exemplo, verificou-se que (i) o comportamento dos preços foi oposto ao pre- visto (Barro, 1977a); (ii) mudanças da oferta de moeda, mesmo antecipadas, afetam o nível da renda real (Romer e Romer, 1989; Bernanke e Blinder, 1992; Galí, 1992; Ball e Mankiw, 1994; Bernanke e Mihov, 1998; Christiano, Eichenbaum e Evans, 1996 e 1998; Leeper, Sims e Zha, 1996; Bernanke, Gertler e Watson, 1997); (iii) a taxa de juros e não a oferta de moeda é a variável causadora das flutuações no nível de preços (Sims, 1980a e 1980b; Friedman e Kuttner, 1992; Leeper, Sims e Zha, 1996; Estrella e Mishin, 2006); (iv) há reduzida substituição intertemporal de trabalho por lazer (Altonji e Ashenfelter, 1980; Altonji, 1982); (v) o sucesso empí- rico de vários modelos (veja-se, por exemplo, Hall, 1980) se deve a hipóteses ques- tionáveis (Altonji, 1982). Afinal, do ponto de vista empírico parece evidente que o desemprego em larga escala é involuntário (Lindbeck e Snower, 1988b: 29) e não vivemos no melhor dos mundos possíveis do Dr. Pangloss (Buiter, 1980).