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This study employs state-level panel data to explore the relationship between inward foreign direct investment (FDI) and income inequality in the United States. Using panel cointegration techniques that allow for cross-sectional heterogeneity and cross-sectional dependence, we find that, in the long run, FDI exerts a significant and robust negative effect on income inequality in the United States. This result for the United States as a whole does not imply that FDI narrows income gaps in each individual state. There is considerable heterogeneity in the long-run effects of FDI on income inequality across states, with some states (21 out of 48 cases) exhibiting a positive relationship between FDI in income inequality. (JEL F21, D31, C23), I. INTRODUCTION The challenges that foreign direct investment (FDI) might involve for high-income countries such as the United States are typically discussed with respect to the domestic repercussions of foreign [...]

The role of industry-level research-and-development and firm-level productivity for multinational enterprises' (MNEs') choice of making foreign direct investment (FDI) is explored. A decision process is accounted for through firm-specific datasets on German MNEs with differing equity stakes in Indian affiliates. How German firm decisions were influenced by Indian FDI liberalization is examined.

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6435.2010.00470.x Byline: Marcus Neureiter (1), Peter Nunnenkamp (1) Abstract: SUMMARY We use data on motives of international outsourcing and location choices from a recent survey of European companies to assess the labour market repercussions at home. Employing Tobit models we differentiate between job losses as well as job creation for high and low skilled employees at the sector level in ten European home countries. Our findings qualify public concerns about adverse employment effects resulting primarily from cost-oriented sourcing in low wage locations. The quantitative impact on job losses remains modest in the case of cost-saving motives. The simple divide between low and high wage locations hides substantial heterogeneity within both groups. We also find that job losses are typically compensated partly by new job creation, particularly for high skilled workers. Author Affiliation: (1)Kiel Institute for the World Economy, D-24100 Kiel, Germany Article note: Corresponding author: Peter Nunnenkamp, Kiel Institute for the World Economy, D-24100 Kiel, Germany; phone: +49- 431-8814209; email: peter.nunnenkamp@ifw-kiel.de.

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-9701.2009.01233.x Byline: Axel Dreher (1), Florian Molders (2), Peter Nunnenkamp (3) Abstract: Abstract This paper analyses whether aid channelled through non-governmental organisations (NGOs) is less affected by selfish donor motivations and better targeted to needy recipient countries than aid distributed by state agencies. We employ Tobit (and Probit) models and make use of an exceptionally detailed database that allows an assessment of the allocation of Swedish aid channelled through NGOs in comparison to the allocation of Swedish official aid. Our analysis provides mixed results. On the one hand, NGOs appear to be altruistic as far as available indicators on political and commercial motivations of aid can tell. On the other hand, needs-based targeting of aid by NGOs turns out to be surprisingly weak. GDP per capita of recipient countries shapes the allocation of official aid, but not that of aid channelled through NGOs. The headcount of absolute poverty has a significantly positive effect on aid allocation, but its impact is not particularly strong when NGOs are involved. Overall, the Swedish case supports the sceptical view that NGOs are not necessarily superior donors compared to state aid agencies. Author Affiliation: (1)Georg-August University, Goettingen; KOF Swiss Economic Institute; IZA and CESifo (2)DIW German Institute for Economic Research, Berlin (3)Kiel Institute for the World Economy

Foreign direct investment (FDI) has led to employment generation in the non-maquiladora manufacturing sector of Mexico in both white- and blue-collared jobs. Details on the impact of FDI on the employment in export-oriented and capital-intensive markets are discussed.

To purchase or authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6435.2007.00376.x Byline: Jonas Dovern (1), Peter Nunnenkamp (1) Abstract: SUMMARY The paper applies an alternative approach to assess whether foreign aid promotes economic growth in developing countries, based on the concept of temporary growth accelerations suggested by Hausmann, Pritchett and Rodrik. In addition to aggregate aid, we differentiate between major aid categories, including grants, loans and so-called short-impact aid. It turns out that aid flows have a small but significantly positive effect on the conditional probability of growth accelerations. This result holds across different estimation methods. However, the significance of results crucially depends on the criteria applied to identify growth accelerations. Author Affiliation: (1)Kiel Institute for the World Economy, Duesternbrooker Weg 120, D-24105 Kiel, Germany

Singapore's outward foreign direct investment is unique in important respects, even though it shares some characteristics with foreign direct investment undertaken by traditional investor countries. The focus of this investment [...]

It is surprisingly hard to come by conclusive evidence supporting the widely held view that developing countries should draw on foreign direct investment to spur economic development. Virtually all empirical [...]

The report was prepared to give a review on the UNCTAD publication on the foreign direct investment in the World Investment Report 2003 where the report discusses eight key issues related to development impact of foreign direct investment. The studies revealed that market failure was not sufficient condition for flexible and selective foreign direct investment policies to be effective.

A study is conducted to find out the conditions that can effectively utilize foreign direct investment (FDI) to govern the economic growth in developing countries.

The current confusion about commercial lending determinants appears to be mainly because conflicting hypotheses apply to different lending regimes. It is important to distinguish between credit constrained and non-constrained borrowers, and between voluntary and involuntary lending. The empirical investigation focuses on whether or not banks have honored policy reform and favorable economic performance of debtors by providing additional financing. Furthermore, it is assessed in which way bank lending to developing countries has been influenced by sovereign risk since 1982.

We study an underexplored research question, namely whether financial market development in both host and source countries has an effect on bilateral stocks of foreign direct investment (FDI) and, particularly, whether the effect of financial market development in one member of the country pair conditions the effect of financial market development in the other member. We estimate gravity‐type models in a global sample of 43 source and 137 host countries over the period 2001–12. We address reverse causality concerns by restricting the sample to observations where reverse causality, if existent, should be less relevant. Our major and robust findings are that bilateral FDI increases with better developed financial markets in both the host and the source country and that for developing host countries, financial market development in source and host countries functions as substitutes for each other. [ABSTRACT FROM AUTHOR]