Kotov, Denis (2008): How Changing Investment Climate Impacts on the Foreign Investors Investment Decision: Evidence from FDI in Germany. Published in: Proceedings of the International Conference on Applied Economics 2008 (2008): pp. 547-553.
Download (99kB) | Preview
In the paper we have analysed how the changing investment climate influences investment decisions of German investors. The basic idea of our concept is a treatment of investment climate conditions as a number of factors which negatively contribute to the foreign investors’ decisions. Using statistics on FDI and aggregate indicators describing the institutional (level of corruption, protection of property rights) and macro-economical (foreign exchange rates and consumer prices dynamics) environment for the period from 1998 to 2005 we have examined the impact of the investment climate conditions on FDI inflows from Germany to the countries of BRIC, G8 and some members of EU. By controlling for FDI in BRIC countries we have shown that these states represent less attractive investment destinations for German FDI despite being viewed as the future’s most promising economies. German investors still prefer exporting rather than investing in BRIC emerging markets.
|Item Type:||MPRA Paper|
|Original Title:||How Changing Investment Climate Impacts on the Foreign Investors Investment Decision: Evidence from FDI in Germany|
|Keywords:||Investment Climate, FDI, BRIC, G8|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements
|Depositing User:||Dr Denis Kotov|
|Date Deposited:||18. May 2008 04:44|
|Last Modified:||29. Aug 2015 11:26|
Bevan,A. – Estrin,S. (2000), ‘The Determinants of Foreign Direct Investments in Transition Economies’, Centre for New and Emerging Markets, London Business School, William Davidson Working paper No. 342.
Dunning,J.H. (1980), ‘The Location of Foreign Direct Investment Activity, Country Characteristics and Experience Effects’, Journal of International Business Studies: 9-22.
Haaland,J. – Wooton,I. – Faggio,G. (2001), ‘Multinational Firms: Easy Come, Easy Go?’, Finanzarchiv, volume 59 number 1:3-26.
Hakkala,K. – Norbäck,P-J. – Svaleryd,H. (2005), ‘Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms’, The Research Institute of Industrial Economics, Working Paper No. 641.
Hall,R. – Jones,C. (1999), ‘Why Do Some Countries Produce So Much More Output per Worker than Others’, Quarterly Journal of Economics, volume 114 number 1 February: 83-116.
Kotov, D. (2006), ‘An investigation of foreign direct investment intensity between Russia and Germany: research proposal’, ‘III Intellectual technologies in education, economy and management’, International scientific conference, December: 6-7.
Lahir,S. – Ono,Y. (1998), ‘Foreign Direct Investments, Local Content Requirement and Profit Taxation’, Economic Journal, volume 108: 444-457.
Leahy,D. – Montagna,C. (2000), ‘Unionization and Foreign Direct Investments: Challenging Conventional Wisdom?’, Economic Journal, volume 110: C80-C92.
Smith,W. - Hallward-Driemeier,M. (2005), ‘Understanding the Investment Climate’, Finance & Development, March:40-43.
Taylor,C. (2008), ‘Foreign Direct Investments and the Euro: the First Five Years’, Cambridge Journal of Economics, volume 32 number 1:1-28.
Venture,J. (1997), ‘Growth and Interdependence’, Quarterly Journal of Economics, volume 112 number 1 February:57-84.
‘International Trade and Foreign Direct Investments’ in: International Encyclopedia of Business and Management (1998), Edited by Malcom Wagner, London, New York. Volume 3: 2339-2354.