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Subjects: Commerce, Department of : Secretary; Commerce, international : Global financial markets :: Unrest; Commerce, international : Group of Twenty (G-20) nations; Economy, national : Foreign capital investment; Russia : Bilateral Presidential Commission, U.S.-Russia; Russia : Democracy efforts; Russia : Economic growth and development; Russia : Minister of Economic Development; Russia : New Economic School in Moscow; Russia : Parallel business summit in Moscow; Russia : President; Russia : President Obama's...
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This paper investigates a relationship between foreign direct investment (FDI) inflows, exchange rate, and economic growth of a developing country, and their effects on major economic activities in the nation. This paper examines macroeconomic activity variables of gross domestic product, fixed capital investment, employment ratio, retail trade turnover, industrial production, FDI inflows, and dollar exchange rate as a control variable. The macroeconomic activity statistics often calendar years (1997-2006) of Kazakhstan were analyzed by using a multivariate regression model with weighted least squares estimates. The results indicate that FDI has a minimum or not a statistically significant impact on GDP growth of Kazakhstan. The paper argues that a resource-seeking FDI has a minimal eff...
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The world capital market that includes emerging and developed countries offers advantages such broad international investment and disadvantages such as speculative attacks. This open equity market stimulates economic growth because the respective nations can share capital risks with foreign investors and effectively venture into riskier projects. The decline in the cost of capital experienced by countries that join the world capital market is smaller than projected and the resultant expansion of the world capital market corresponds with a decline in the risk premium for bearing risk.
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... embrace the policies favored by private capital. Daniel Yergin wrote in 1998, "While the public vo...Today's global economic system is marked both by increased trade--includin... financial assets in government hands, the foreign assets of key emerging market governments are grow... enough to accommodate the unprecedented growth of emerging market reserves." (6) . Second, nation...
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...The current capital markets crisis may undermine the US-led effort to ... Settlements [BIS], the Organisation for Economic Co-operation and Development [OECD], and the Europ..., while local entrepreneurs may welcome foreign capital, local banks may worry about the competiti... interested in the prospects for economic growth and the ability to avoid turmoil in developed coun...
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... providing stronger IPR protection to foreign firms (owners of intellectual property) could crip... level of development; the stock of human capital is proxied by the secondary school enrollment (SEC...
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Foreign direct investment (FDI), as pointed out by Kindleberger, arises when the host country has an investment opportunity that it cannot exploit by itself because it lacks the means or technical know-how, or because of market incompleteness. A multinational corporation (MNC) may be able to exploit such an opportunity because it has the necessary capital, technology, and managerial skills to do so. In this article, the authors describe some stylized facts about expropriation episodes and other lessons learned from the empirical literature on FDI. The authors then summarize some of the main theories attempting to explain the effects of expropriation on investment and growth. Finally, they develop a theory that relates each type of expropriation to political instability and concentration...
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... countries have to rely on the foreign capital inflow to fill these two gaps: The import-export g... can be observed from the story of economic growth. . The Jordanian economy had passed through five d...
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In the 1970s, foreign exchange (FX) trading emerged as a significant line of business for large, internationally active financial institutions. During the 1970s, FX rates began to float freely; once currencies were free to seek their own economic values, banks quickly realized that FX trading rooms were potential profit centers. Settlement payments were made on trust that the contra-currency would be remitted by the counterparty on the proper value date. This "trust me" system of settling FX transactions worked fairly well until Jun 26, 1974. The trust me system essentially came apart at the seams. The trust me method of settling FX transactions with all of its inherent risks is almost history. It is appropriate, given the explosive growth in global capital markets in general and foreig...
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This study addresses vital questions: First, why a select group of developing countries receives the lion's share of Foreign Direct Investment (FDI), while the overwhelming majority of less developed countries are left behind? Second, whether and to what extent FDI inflow is a function of a country's FDI policy regime? The study identifies market size, the rate of growth in market size, economic competitiveness, infrastructure, and worker productivity as key location factors. Further, several specific FDI and trade policies are germane to attracting a significant volume of FDI. These include lowering the ratio between the volume of FDI that is approved, as against the FDI actually undertaken by streamlining the approval process and removing arbitrary foreign ownership ceilings in sector...
... come to view FDI as a valuable source of capital; as a highly advantageous source for accessing Wes...