Capital/Labor substitution, capital deepening, and FDI
نویسندگان
چکیده
منابع مشابه
Human Capital and Inward Fdi
After a review of the literature, we conclude that there is potential for significant spillover effects from FDI into host countries. However, we identify some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. We suggest comparing conditions and effects between regions, particularly be...
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In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. Frequently, foreign direct investment is financed in the host country without an international capital movement. We develop a model in which the optimal choice of financing an international investment trades off the relative costs and benefits associated with the a...
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Capital Deepening and Wage Differentials: Germany vs. US Capital deepening may affect the evolution of the wage differential between skilled and unskilled workers differently in countries with different labor market institutions. If labor market institutions raise the relative wage of unskilled workers in Germany, firms have incentives to invest relatively more into capital equipment complement...
متن کاملExchange rates and FDI : Goods versus capital market frictions
Economic theory provides two main explanations why changes in exchange rates can affect foreign direct investment (FDI). According to a first explanation, FDI reacts to exchange rate changes if there are information frictions on capital markets and if the investment by firms depends on their net worth (capital market friction hypothesis). According to a second explanation, FDI reacts to exchang...
متن کاملFDI Contribution to Capital Flows and Investment in Capacity
The paper discusses a theory of FDI, which captures a unique feature: hands-on management standards to react in real time to a changing economic environment in the firms that FDI investors gain control. Equipped with superior managerial skills, foreign direct investors outbid portfolio investors for the top productivity firms in a particular industry in which they have specialized in the source...
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ژورنال
عنوان ژورنال: Journal of Macroeconomics
سال: 2009
ISSN: 0164-0704
DOI: 10.1016/j.jmacro.2008.12.004