The world has made great progress over the centuries through the massive increase in the interconnectedness of nations around the globe. Today, the world is connected through various ways, including the movement of goods, people, and money. The amount of goods traded across countries borders has drastically increased as the result of technological progress and the removal of barriers to trade. Not only has the world become more interconnected with the physical flows of goods and services, but also countries of the world have become more integrated financially. This study proposes to analyze how increase in financial flows, as measured by Foreign Direct Investment, impact physical flows of goods, as measured by trade. The study focuses on Gulf countries. These countries represent an interesting case study given the structure of their economies, their massive natural resource endowments and heavy reliance on oil and natural gas revenue, and their large sovereign funds. Using panel data for the years 2001-2012 and reliable econometric techniques, the study assesses the impacts of increased investment from Gulf countries on the imports from and exports to partner countries. The results show that both FDI inflows and outflows significantly increase imports to and exports from the Gulf countries. The results are robust to various estimations methods and remain valid for both agricultural and non-agricultural products. The findings of the study provide a better understanding of the trade-investment nexus and shed light on the underlying motives of investment by Gulf countries. Inflows and outflows of investment serve as a strategic option for Gulf countries to both promote their exports while securing their supply in consumer and capital goods.

The purpose of this study is, therefore, to investigate empirically the firm- and location-specific determinants of the magnitude of FDI by Korean manufacturing MNCs--one of the leading Third World MNCs. This study also examines firm-specific characteristics that distinguish Korean MNCs investing in developing countries from those investing in developed countries.

The aim of the present thesis is to introduce the topic of foreign direct investment (FDI) from the multiscience (multidiscipline) perspective. FDI is a phenomena that cuts across many fields of human activity. It is of major significance for the national economies and an important factor for the global economic growth. Although these characteristics of FDI are widely known today, it was not always the case in the past. Since the sixties, it has been a focus of deeper studies and an object of interest especially for the international organizations that supervise the global economy. As each socio-economic phenomena, the issue of FDI has its historical background and this thesis seeks to comprehend this subject and further tracks the emergence of the business climate and economical processes that show the characteristics of later defined FDI. The historical formation of FDI is related to qualitative and quantitative development of the phenomena, and to its temporal and geopolitical context. The thesis presents the most relevant factors and causes of the present state of FDI, and monitors the crucial moments of the elements contributing to the evolution of the international investment environment. A more detailed study is devoted to Central European countries, since their specific development after...

Master of Arts / Department of Economics / Yang-Ming Chang / This report examines the role of the privatization in Sri Lanka and assesses its effectiveness. The focus was given for the evolution of privatization and how socio-political factors such as rent-seeking, inconsistency policy making, market competition, political uncertainty and role of supporting institutions have affected the privatization process. After the independence in 1948, several reforms have been taken place in Sri Lanka. In 1977, a market oriented policy package which brought huge amount of foreign aids into the country was introduced. Further the privatization in Sri Lanka can be addressed as: Sporadic attempt, Systematic approach and Structured approach. The appointment of short-term governments and changing of the leadership has always been a hurdle for a successful privatization in Sri Lanka. In order to establish a successful privatization, it requires having the changing of ownership from public sector to private sector, creating a competitive market environment and forming a proper institutional framework. Unfortunately, due to less emphasis was given to the latter two factors: the privatization has always given undesirable outcomes. In the whole history of privatization in Sri Lanka, the highest value for Foreign Direct Investment (FDI) was recorded in 2008. It is clear that the reason for the FDI value escalation in 2008 is the improved confidence of foreign investors by addressing security concerns. In conclusion, it is time to investigate whether the current regulatory model is the most appropriate arrangement for the prevailing economic, social and cultural circumstances in Sri Lanka.

Foreign direct investment (FDI) is a key option for economic growth in most, if not all, developing countries. However, not all developing countries are equally open to foreign investment. Some restrict foreign equity, while others encourage multinational corporations to enter their markets. Because FDI involves outsiders entering national markets and profits, it is very political. FDI can bring economic benefits, such as jobs and new technology, but it may also entail economic costs, such as increased competition for national businesses. FDI may also bring political costs, as governments that open to foreign equity may see a popular backlash. Most governments have policies to control FDI's entry into their markets. These policies have been inadequately explored in quantitative studies of FDI because of a lack of available data. This study seeks to rectify that problem by introducing a new set of data: The Foreign Equity Index. I develop a theory and model of FDI in developing countries framed by the logic of two-level games. FDI requires agreement between developing states and international firms, and therefore agreements are reached with influence from domestic-level political and economic factors, as well as international-level factors. FDI policies are an indication of developing countries win-sets, or range of agreements they are willing to accept when dealing with foreign multinational corporations. I test this theory quantitatively using the Foreign Equity Index, which covers 55 developing countries from 1976-2004. I first estimate the international and domestic factors that influence the degree of openness to FDI indicated by FDI equity policies in developing countries. I then test the effect these policies have on FDI inflows. I find that both domestic and international factors affect developing countries’ FDI policies, and in turn, policies are a significant factor determining the flow of FDI into national markets. I also explore the ways in which FDI policies have played a role in economic development strategies of El Salvador and Nicaragua. This research and the Foreign Equity Index should aid in a better understanding of foreign direct investment and growth in developing countries in general.

One of the most visible signs of the globalization of the world economy is the increase of Foreign Direct Investment (FDI) inflows across countries. This past decade the trend of FDI has shifted from developed countries to emerging economies, which is most notably in the BRICS countries. However, as BRICS reputation has been damaged these past years due to its weak growth outlook in the early 2010s, investors are shifting to the new economic grouping acronym, the MINT (Mexico, Indonesia, Nigeria and Turkey) countries for better future prospects of FDI destination. Since the MINT countries have emerged as a popular destination of FDI, it is necessary to investigate what are the key factors that make these four countries attractive as FDI destinations. Hence, this paper analyzes what are the determinants of inward FDI into the MINT countries during the time period from 1990 to 2014. To be able to answer the research question and demonstrate the effect of the seven independent variables (market size, economic instability, natural resources availability, infrastructure facilities, trade openness, institutional stability and political stability) on FDI as a dependent variable, the study uses a panel data analysis. The data is based on secondary data, which is collected from the World Bank dataset. The empirical finding from the study illustrates that market size, economic instability, infrastructure facilities, trade openness, institutional stability, and political stability are significant as determinants FDI inflows to the MINT countries, meanwhile, natural resources availability appears to be an insignificant determinant of FDI inflows to the MINT countries.

The thesis describes and analyses the development of foreign direct investments in Czech Republic with emphasis on state and regional level. The goal of my thesis, focusing on the topic "Regional differences of foreign direct investments", is to answer the question if foreign direct investments help to decrease the regional disparities. The first part of the thesis oves more detail sof FDI definition, types, factors of localizations and barriers. Second part of the thesis answers the question if FDI brings positive impact to economic development. The third part defines the regions supported by government. The main part of the thesis analyses the development of FDI in Czech Republic and two levels of districts during 2000-2008. In the last part of the thesis are mentioned two examples of foreign direct investment localizated in Czech Republic, in different districts.

Au cours de ces trois dernières décennies l’économie chinoise a multiplié son PIB par 15. Pour soutenir une forte croissance interne et assurer ses approvisionnements en matière première et énergétique, la Chine s’est tournée vers l’Afrique en y augmentant rapidement et fortement ses investissements directs étrangers lors des dix dernières années. Deuxième partenaire commercial africain, investisseur stratégique, allié au développement et pourvoyeur financier, ce pays bouleverse les rapports de force qui s’étaient instaurés depuis les indépendances sur le continent. L’objet de ce travail est d’évaluer l’impact des IDE chinois sur le taux de croissance de 38 pays africains partenaire de la Chine entre 2003 et 2011. Nous avons articulé notre réflexion sur la question suivante : la coopération sino-africaine permet-elle aux pays africains de lutter contre la pauvreté, le chômage dans leur pays et surtout d’entamer un véritable processus de développement économique ? Pour répondre, nous avons analysé le mode de croissance chinois, les fondements de la politique africaine de la Chine, les raisons qui poussent les entreprises chinoises à aller investir en Afrique, les impacts politiques et économiques de la Chine en Afrique et enfin nous avons réalisé une étude empirique mesurant les effets des IDE chinois en Afrique. Nos résultats économétriques montrent que les IDE chinois n’ont pas d’effet significatif sur le PIB par tête de ces 38 pays africains, notamment à cause de la politique des entreprises chinoises en Afrique qui encourage les investissements dans les secteurs qui créent moins d’emploi local et qui ne permettent pas de vrai transfert de technologie. / For the last three decades, the Chinese economy has multiplied it GDP by 15. In order to maintain a strong home economical growth and insure a constant supply of raw material and energy, China turned towards the African continent by quickly and firmly multiplying its foreign direct investments during the last ten years. By becoming the second largest business partner of Africa, as well as a strategic investor, a financial supplier and associated for the development; China has now overturned the balance of powers which had been established since the decolonization of Africa. The purpose of this study is to estimate the impact of the Chinese FDI on the growth rate of 38 African countries between 2003 and 2011. We have centred our reflection on the following questions: What are the impacts of the economical cooperation between China and African countries on poverty, unemployment and; does this cooperation encourage the possibility to start a real process of economic development in Africa? In order to come to a conclusion on this matter, we have analyzed the way through which China achieves economical growth, the foundations of China’s African Policy, as well as the reasons for Chinese companies to invest in Africa and the political and economical impacts of China’s Policy in Africa. Finally, we led an empirical study measuring the effects of the Chinese FDI in Africa. Thanks to our econometric study, we came to the conclusion that the Chinese FDI has no significant effect on the GDP per capita of these 38 African countries. Because they are invested in sectors which end up creating less local employments and which, eventually do not allow a real transfer of technologies …

In the present dissertation, we study tax competitions for foreign direct investment, which includes the study of greenfield investment with the firm's ownership problem and the cross-border merger and acquisition (M\&A). It sheds light on the literature of public finance, international economics, and industrial organization. In chapter 1, we develop an open economy model with two segmented countries and one monopoly firm which registered in one of the countries. Our results show that when there is an exogenous transportation cost when exporting, the market size plays an important role in tax competition, however, when there is an endogenous tariff determined optimally by each country, the market size does not matter in the tax competition. Chapter 2 and 3 study the tax competition for a post-cross-border merger and acquisition firm, which the firm has three location options, located in either of the countries or both. We found that when the governments have two tax instruments, the lump-sum tax and tariff, the market size and price policy play an important role in tax competition. Moreover, when the governments utilize the lump-sum tax as the only instrument for tax competition, both the firm and countries will be better off when the firm keeps both plants.

This thesis concerns the environment of Foreign Direct Investment in Brazil with the purpose of determining the biggest hurdles and incentives for establishing a business in the country. The study is analysed in the context of the Diamond model of national wealth, first introduced by Porter (1990) and is based on secondary source research and data. The main motives are outlined as resource-seeking, market-seeking and non-marketable asset seeking and assessed by using a number of determinants that is commonly used when investing whether a country is competitive in role of attracting investments from abroad. Found was that Brazil has a competitive advantage in terms of market size and a population growing purchasing powers that stems from recent economic growth. The main obstacle for Brazil is now to regain economic stability since the country currently is undergoing recession and invest in infrastructure which is currently one of the largest barrier for foreign (and domestic) businesses.