FDI在发展中国家的决定因素分析毕业论文外文文献翻译.docx

1、FDI在发展中国家的决定因素分析毕业论文外文文献翻译毕业论文外文翻译外文题目： Analyses of FDI determinants in developing countries 出 处： Economics.2009(36):105-123. 作 者： Recep Kok,Bernur Acikgoz Erso y 原文：Analyses of FDI determinants in developing countriesRecep Kok,Bernur Acikgoz ErsoyABSTRACTPurpose: The purpose of this paper is to inv

2、estigate the best determinants of foreign direct investment (FDI) in developing countries.Design/methodology/approach: This paper investigates whether FDI determinants affect FDI based on both a panel of data (FMOLS-fully modified OLS) and cross-section SUR (seemingly unrelated regression) for 24 de

3、veloping countries, over the period 1983-2005 for FMOLS and 1976-2005 for cross-section SUR.Findings: The interaction of FDI with some FDI determinants have a strong positive effect on economic progress in developing countries, while the interaction of FDI with the total debt service/GDP and inflati

4、on have a negative impact. The most important determinant of FDI is the communication variable. Keyword FDI developing country determinant1.IntroductionTrade has traditionally been the principal mechanism linking national economies in order to create an international economy. FDI is a similar mechan

5、ism linking national economies; therefore, these two mechanisms reinforce each other. The trade effects of FDI depend on whether it is undertaken to gain access to natural resources, to consumer markets or whether the FDI is aimed at exploiting locational comparative advantage or other strategic ass

6、ets such as research and development capabilities. Most developing countries lack technology capability and FDI to facilitate technology transfer and reduce the technology gap (TGAP) between developing countries and developed countries. In fact, it is suggested that spillovers or the external effect

7、s from FDI are the most significant channels for the dissemination of modern technology (Blomstrom, 1989).FDI has innumerable other effects on the host countrys economy. It influences the income, production, prices, employment, economic growth, development and general welfare of the recipient countr

8、y. It is also probably one of the most significant factors leading to the globalization of the international economy. Thus, the enormous increase in FDI flows across countries is one of the clearest signs of the globalization of the world economy over the past 20 years (UNCTAD, 2006). Therefore, we

9、can conclude that FDI is a key ingredient for successful economic growth in developing countries, because the very essence of economic development is the rapid and efficient transfer and adoption of “best practice” across borders.On the other hand, in general, foreign investors are influenced by thr

10、ee broad groups of factors:The profitability of the projects.The ease with which subsidiaries operations can be integrated into investors global strategies.The overall quality of the host countrys enabling environment.A large number of studies have been conducted to identify the determinants of FDI

11、but no consensus has emerged, in the sense that there is no widely accepted set of explanatory variables that can be regarded as the “true” determinants of FDI. The results produced by studies of FDI are typically sensitive to these factors, indicating a lack of robustness. For example, factors such

12、 as labor costs, trade barriers, trade balance, exchange rate, R&D and tax have been found to have both negative and positive effects on FDI. Chakrabarti (2001) concludes that “the relation between FDI and many of the controversial variables (namely, tax, wages, openness, exchange rate, tariffs, gro

13、wth and trade balance) are highly sensitive to small alterations in the conditioning information set”.The important question is “Why do companies invest abroad?” Dunning (1993) developed his theory by synthesizing the previously published theories, because existing explanations could not fully justi

14、fy the existence of FDI. According to Dunning, international production is the result of a process affected by ownership, internalization and localization advantages. The latter is the most important: the factors based on which an investor selects a location for a project. These include the factors

15、affecting the availability of local inputs such as natural resources, the size of the market, geographical location, the position of the economy, the cultural and political environment, factor prices, transport costs and certain elements of the economic policy of the government (trade policy, indust

16、rial policy, budget policy, tax policy, etc.).2.The determinants of FDI: theory and evidenceFDI has been regarded in the last decades as an effective channel to transfer technology and foster growth in developing countries. This point of view vividly contrasts with the common belief that was accepte

17、d in some academic and political spheres in the 1950s and 1960s, according to which FDI was harmful for the economic performance of less developed countries. The theoretical discussion that permeated part of the development economics of the second half of the twentieth century has been approached fr

18、om a new angle on the light of the New Growth Theory. Thus, the models built in this novel framework provide an interesting background in order to study the correlation between FDI and the growth rate of GDP (Calvo and Robles, 2003).In the neoclassical growth model technological progress and labor g

19、rowth are exogenous, inward FDI merely increases the investment rate, leading to a transitional increase in per capita income growth but has no long-run growth effect (Hsiao and Hsiao, 2006). The new growth theory in the 1980s endogenizes technological progress and FDI has been considered to have pe

20、rmanent growth effect in the host country through technology transfer and spillover. There is ongoing discussion on the impact of FDI on a host country economy, as can be seen from recent surveys of the literature (De Mello, 1997, 1999; Fan, 2002; Lim, 2001).According to the neoclassical growth theo

21、ry model, FDI does not affect the long-term growth rate. This is understandable if we consider the assumptions of the model, namely: constant economies of scale, decreasing marginal products of inputs, positive substitution elasticity of inputs and perfect competition (Sass, 2003). Within the framew

22、ork of the neo-classical models (Solow, 1956), the impact of FDI on the growth rate of output was constrained by the existence of diminishing returns in the physical capital. Therefore, FDI could only exert a level effect on the output per capita, but not a rate effect. In other words, it was unable

23、 to alter the growth rate of output in the long run (Calvo and Robles, 2003).As a consequence, of endogenous growth theory, FDI has a newly-perceived potential role in the growth process (Bende-Nabende and Ford, 1998). In the context of the New Theory of Economic Growth, however, FDI may affect not

24、only the level of output per capita but also its rate of growth. This literature has developed various hypotheses that explain why FDI may potentially enhance the growth rate of per capita income in the host country (Calvo and Robles, 2003). However, the endogenous growth theory, which dispenses wit

25、h the assumption of perfect competition, leaves more scope for the impact of FDI on growth. In this theoretical framework, investment, including FDI, affects the rate of growth through research and development (R&D) or through its impact on human capital. Even if the return on investment is declinin

26、g, FDI may influence growth through externalities. Particularly, FDI displaces domestic savings (Papanek, 1973; Cohen, 1993; Reinhart and Talvi, 1998). In a seminal paper, Papanek (1973) showed the significant negative impacts of different types of capital on national savings. Based on a sample of 8

27、5 developing countries, Papanek found that foreign capital displaced domestic savings. Specifically, he showed that foreign aid, private investment and other capital crowded out national savings, and a reduction in domestic savings could lead to further increase on the dependency on foreign capital

28、(Baharumshah and Thanoon, 2006).Another determinant, tariffs, has a positive effect on FDI if they are combined with the growth rate and openness, but they produce a negative effect when combined with wages. The real exchange rate produces a positive effect when it is combined with openness, domesti

29、c investment and government consumption. When domestic investment is excluded, the effect becomes negative.This supports the argument that an efficient environment that comes with more openness to trade is likely to attract foreign firms. This conclusion is also supported by Asiedu (2002) and Edward

30、s (1990). In this model, investment tax and wages have a negative impact on FDI, while infrastructure and market size have a significantly positive impact on FDI. Generally, only in the case of export oriented FDI, cheap labor in terms of lower wages works as an incentive (Wheeler and Mody, 1992). O

31、n the other hand Tomiura (2003) study confirms that the positive association between FDI and R&D is robust even if firms undertaking no FDI and/or no R&D are included. In this respect, Morck and Yeung (1991) hypothesize and provide evidence that FDI creates wealth when an expanding firm possesses in

32、tangible assets, such as superior production and management skills, marketing expertise, patents and consumer goodwill.3.Data definitionThe indicators tested in this study are selected on the basis of FDI theories and previous empirical literature. The indicators tested in the panel study and cross-

33、section SUR, are the FDI determinants for which the data have been found for developing countries for at least 30 years. Data sets related to a number of developing countries are sometimes discontinuous for some variables (i.e. not available for all 30 years). For that reason while defining the main determinants of FDI i