With the increased international financial integration in recent years, bilateral financial linkages between countries may have a growing influence on their real economies. This paper employs a structural two-country New Keynesian model, which incorporates a cross-border wealth channel, to estimate the effect that foreign stock market fluctuations may have on macroeconomic variables in open eco...

This study examines the role of foreign direct investment (FDI) on growth, making a comparison between selected countries of Africa and Asia. We utilized data for 30 countries 2009. The Hausman among OLS, fixed effect and random effect models. First, aggregate data and later disaggregated the data in assess the regional impact of FDI on ec that FDI has positive relationship with GDP growth also...

International Image Theory (IIT) suggests that individuals maintain holistic images of other countries that are akin to schemas, or stereotypes, and that these national images shape both attitudes and foreign policy preferences. Previous research has manipulated national images via explicit descriptions of fictitious countries and found initial evidence for such effects. Here we extend this res...

Nowadays, agricultural R&D provides new and developed technologies to create modern agricultural producing methods. During recent years, improving agricultural productivity is affected by not only domestic R&D investments but also foreign countries R&D investments. Nowadays, according to new growth models, R&D is the base of productivity. Recent economic theories consider agricultural research ...

This paper examines whether policies to promote foreign direct investment (FDI) make economic sense. The discussion focuses on whether existing academic research suggests that the benefits of FDI are sufficient to justify the kind of policy interventions seen in practice. For small open economies, efficient taxation of foreign and domestic capital depends on their relative mobility. If foreign ...

Traditional economic models predict that capital should flow from capital-rich to capitalpoor economies. In recent years, capital has been flowing in the opposite direction, although foreign direct investment flows do behave more in line with theory. Do these perverse patterns of flows dampen growth in non-industrial countries by depriving them of financing for investment? On the contrary, the ...

Studies of foreign direct investment (FDI) distribution in the US is voluminous but such studies on a developing country are rare. We fill the void by analyzing the spatial and temporal variation in FDI among China’s 30 provinces. We believe this is the first study of its kind. Other than some “standard” results, our pooled regression finds that the cumulative FDI has a negative impact on the n...

We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of exports and take this model to data from Germany, one of the leading actors on the world market for goods. In line with theoretical predictions we find that...

Large global financial imbalances need not be the harbinger of a world financial crash as many authors believe. Instead, we show that large and persistent global imbalances can be the outcome of financial integration when countries have different financial markets characteristics. In particular, countries with more advanced financial markets accumulate foreign liabilities vis-a-vis countries wi...

When a country interacts with foreign countries, it exposes itself to foreign culture and behaviour. This exposure could in‡uence the domestic culture through imitation or adaptation in the same way as individuals tend to be in‡uenced in their behaviour by the groups that they frequent. This could carry over to business culture in general and the corruption culture speci…cally. Therefore, the m...