Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing?
This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the Knowledge-Capital Model of multinational enterprises to control for fundamental determinants of FCS across countries, th...
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okr-10986-55512021-04-23T14:02:22Z Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? Cravino, Javier Lederman, Daniel Olarreaga, Marcelo Multinational Firms International Business F230 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 Socialist Institutions and Their Transitions: Financial Economics P340 This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the Knowledge-Capital Model of multinational enterprises to control for fundamental determinants of FCS across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' FCS has been positive. This finding is robust across different specifications and estimation techniques. There is surprisingly weak evidence of substitution in manufacturing FCS away from Central America/Mexico in favor of China, and from Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques. In sum, fears of a global competition for FDI seem misplaced, and policymakers concerned about attracting foreign investors should focus their efforts on the fundamentals determinants of FDI. 2012-03-30T07:33:22Z 2012-03-30T07:33:22Z 2008 Journal Article Journal of Economic Integration 1225651X http://hdl.handle.net/10986/5551 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article India China |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
EN |
topic |
Multinational Firms International Business F230 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 Socialist Institutions and Their Transitions: Financial Economics P340 |
spellingShingle |
Multinational Firms International Business F230 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 Socialist Institutions and Their Transitions: Financial Economics P340 Cravino, Javier Lederman, Daniel Olarreaga, Marcelo Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? |
geographic_facet |
India China |
relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
description |
This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the Knowledge-Capital Model of multinational enterprises to control for fundamental determinants of FCS across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' FCS has been positive. This finding is robust across different specifications and estimation techniques. There is surprisingly weak evidence of substitution in manufacturing FCS away from Central America/Mexico in favor of China, and from Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques. In sum, fears of a global competition for FDI seem misplaced, and policymakers concerned about attracting foreign investors should focus their efforts on the fundamentals determinants of FDI. |
format |
Journal Article |
author |
Cravino, Javier Lederman, Daniel Olarreaga, Marcelo |
author_facet |
Cravino, Javier Lederman, Daniel Olarreaga, Marcelo |
author_sort |
Cravino, Javier |
title |
Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? |
title_short |
Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? |
title_full |
Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? |
title_fullStr |
Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? |
title_full_unstemmed |
Substitution between Foreign Capital in China, India, the Rest of the World, and Latin America: Much Ado about Nothing? |
title_sort |
substitution between foreign capital in china, india, the rest of the world, and latin america: much ado about nothing? |
publishDate |
2012 |
url |
http://hdl.handle.net/10986/5551 |
_version_ |
1764395456568229888 |