We use a panel of more than 100 countries for the period 1980 to 2002 to analyse the relationship between inward foreign direct investment (FDI) and wage inequality. We particularly check whether this relationship is non-linear, in line with a theoretical discussion. We find that the effect of FDI differs according to the level of development: we depict two different patterns, one for OECD (dev...

Policymakers in developing countries have increasingly pinned their hopes on bilateral investment treaties (BITs) in order to improve their chances in the worldwide competition for foreign direct investment (FDI). However, the effectiveness of BITs in inducing higher FDI inflows is still open to debate. It is in several ways that we attempt to clarify the inconclusive empirical findings of earl...

This paper examines the extent to which foreign direct investment (FDI) affects child labor. Using 1995 data for 145 countries, we find that, contrary to common fears, FDI is negatively correlated with child labor. This effect, however, disappears when controlling for per capita income. After doing so, we find no robust effect of either FDI or international trade on child labor. This result is ...

Can You Teach Old Dragons New Tricks? FDI and Innovation Activity in Chinese State-Owned Enterprises We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by Chinese State owned enterprises (SOEs). We use a comprehensive firm level panel data set of Chinese SOEs covering the period 1999 to 2003. Our results show that foreign capital partic...

This paper assesses the effect of openness on corruption, using foreign direct investment (FDI) inflows as a measure of openness, after trade intensity is accounted for. We use a broad cross section of countries over the period 1970 to 1994 and address the issue of causality with a new set of instrumental variables relying on geographical and cultural distance between the FDI exporting and reci...

According to the pollution haven effect (PHE) mobile capital responds to environmental regulation by moving from countries with high regulation to those with low regulation. Previous tests of the PHE have focused on host country regulation effect. This study also examines the effect of home country regulation on foreign direct investment (FDI). I use a panel of 28 OECD countries for 1981-2000 t...

This study analyzes how small and medium-sized enterprises’ (SMEs)R&D and foreign direct investment (FDI) affect their technical efficiencies in an environment of globalized production, in order to complement previous researches. Our theoretical proposition suggests that unless the substitution effect dominates the magnification effect, FDI will induce more R&D activities and hence will improve...

In this work, different procedures for sensor Fault Detection and Isolation (FDI) applied to a simulated model of a commercial aircraft are presented. The main point of the paper regards the design of two FDI schemes based on a linear Polynomial Method (PM) and the NonLinear Geometric Approach (NLGA). The obtained results highlight a good trade–off between solution complexity and achieved perfo...

FDI is, however, risky for the investing firm and often controversial for the host. So while some states and regions in the U.S. have enthusiastically embraced FDI as part of their economic development strategies, other states have not. Successes around the country have led to reconsideration of the previous views of FDI, and most states are now actively seeking investment from overseas, many w...

As an increasingly large link between China and the rest of the world, as well as a key component of economic policy, foreign direct investment (FDI) is an investment made by a party in one country in business interests in another country. It represents the influx of both capitalism and globalism in China. This paper investigates the link between FDI and regime stability by examining how FDI ha...