Show
Under a Creative Commons license Open access AbstractThis paper explores the relationship between foreign direct investment (FDI) and the productivity of host country domestic firms. We rely on a specially designed survey of over 4000 manufacturing firms in Vietnam, and separate out productivity gains along the supply chain (obtained through direct transfers of knowledge/technology between linked firms) from productivity effects through indirect FDI spillovers. In addition to identifying indirect vertical productivity spillovers from FDI, our results show that there are productivity gains associated with direct linkages between foreign-owned and domestic firms along the supply chain not captured by commonly used measures of spillovers. This includes evidence of productivity gains through forward linkages for domestic firms which receive inputs from foreign-owned firms. JEL classificationD22 F21 O12 O3 KeywordsForeign direct investment Productivity spillovers Direct linkages Technology transfers Vietnam Cited by (0)Copyright © 2015 The Authors. Published by Elsevier B.V. Capital flow is the movement of money for the purpose of investment, trade or business production. This occurs within corporations in the form of investment capital and capital spending on operations as well as research and development. On a larger scale, governments direct capital flows from tax receipts into programs and operations and through trade with
other nations and currencies. Individual investors direct savings and investment capital into securities such as stocks, bonds and mutual funds. FDI: Foreign Direct Investment (FDI) is a direct
investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment, which is a passive investment in the securities of another country such as stocks and bonds. Horizontal FDI decreases international trade as the product of them is usually aimed at host country; the two other types
generally act as a stimulus for it. The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods: Foreign direct investment incentives may take the following forms: The rapid growth of world population since 1950 has occurred mostly in developing countries. This growth has not been matched by similar increases in per-capita income and access to the basics of modern life, such as education, health care, sanitary water and waste disposal. Foreign Direct Investment and the Developing WorldA meta-analysis of the effects of foreign direct investment on local firms in developing and transition countries, conducted in the year 2011, suggests that foreign investment robustly increases local productivity growth. The Commitment to Development Index ranks the "development-friendliness" of rich country investment policies. Foreign Institutional Investor - FIIThe term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. FDI vs FII
Sovereign Debt (Government Debt) Government debt (also known as public debt and national debt) is the debt owed by a central government. (In the U.S. and other federal states, "government debt" may also refer to the debt of a state or provincial government, municipal or local government). By contrast, the annual "government deficit" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year. What is upstream and downstream FDI?Upstream vertical FDI is a type of vertical FDI in which a firm engages in an upstream stage of the value chain. For example, gaining control over natural resources. Downstream vertical FDI is a type of vertical FDI in which a firm engages in a downstream stage of the value chain in 2 different countries.
What is horizontal and vertical FDI?Vertical foreign direct investment occurs when a multinational acquires an operation that either acts as a supplier or distributor. Horizontal FDI occurs when a company initiates a similar operation or business model in another country.
Is a type of FDI in which a firm duplicates its home country based activities at the same value chain stage in a host country?Horizontal FDI arises when a firm duplicates its home-country-based activities at the same value chain stage in a host country through FDI.
What is the amount of FDI moving in a given period usually a year in a certain direction known as?FDI flow: the amount of FDI moving in a given period (usually a year) in a certain direction.
|