Substitution between foreign capital in china, india, the rest of the world, and latin america: much ado about nothing?

Substitution between foreign capital in china, india, the rest of the world, and latin america: much ado about nothing?
Author: Marcelo Olarreaga
Publisher: World Bank Publications
Total Pages: 32
Release: 2012
Genre:
ISBN: 0070920095

This paper explores the impact of the emergence of China and India on foreign capital stocks in other economies. Using bilateral data from 1990-2003 and drawing from the knowledge-capital model of the multinational enterprises to control for fundamental determinants of foreign capital stocks across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' foreign capital stocks has been positive. This finding is robust to the use of ordinary least squares, Poisson, and negative binomial estimators; to the inclusion of time and country-pair fixed effects; to the inclusion of natural-resource endowments; and to the use of the sum of foreign capital stocks in Hong Kong (China) and mainland China instead of using only the latter's foreign capital stocks. There is surprisingly weak evidence of substitution in manufacturing foreign capital stocks away from Central America and Mexico in favor of China, and from the Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques.

Development Centre Studies The Visible Hand of China in Latin America

Development Centre Studies The Visible Hand of China in Latin America
Author: OECD Development Centre
Publisher: OECD Publishing
Total Pages: 164
Release: 2007-04-18
Genre:
ISBN: 9264028382

Latin America is looking towards China and Asia -- and China and Asia are looking right back. This is a major shift: for the first time in its history, Latin America can benefit from not one but three major engines of world growth. Until the 1980s ...

Foreign Direct Investment in Latin America and the Caribbean 2010

Foreign Direct Investment in Latin America and the Caribbean 2010
Author: United Nations
Publisher: UN
Total Pages: 0
Release: 2012
Genre: Political Science
ISBN: 9789211217599

In 2010, the Latin American and Caribbean region showed great resilience to the international financial crisis and became the world region with the fastest-growing flows of both inward and outward foreign direct investment (FDI). The upswing in FDI in the region has occurred in a context in which developing countries in general have taken on a greater share in both inward and outward FDI flows. This briefing paper is divided into five sections. The first offers a regional overview of FDI in 2010. The second examines FDI trends in Central America, Panama and the Dominican Republic. The third describes the presence China is beginning to build up as an investor in the region. Lastly, the fourth and fifth sections analyze the main foreign investments and business strategies in the telecommunications and software sectors, respectively.

China and Latin America and the Caribbean

China and Latin America and the Caribbean
Author: Osvaldo Rosales
Publisher: UN
Total Pages: 0
Release: 2012
Genre: Political Science
ISBN: 9789210210829

The economies of China and of the Latin America and the Caribbean region are the current global growth poles and, over the coming years, will grow twice or three times as quickly as the industrialised economies, which will have to adjust to slower growth and higher unemployment. The present juncture offers an opportunity to rethink global and regional partnership strategies and to put greater emphasis on South-South ties in trade, foreign direct investment FDI) and cooperation. In this document, the Economic Commission for Latin America and the Caribbean (ECLAC) posits that China and the Latin America and the Caribbean region now enjoy a sufficiently mature relationship and are poised to make a qualitative leap towards a mutually beneficial strategic alliance.

World Economic Outlook, April 2008

World Economic Outlook, April 2008
Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
Total Pages: 302
Release: 2008-04-09
Genre: Business & Economics
ISBN: 1589067193

The global expansion is losing speed in the face of a major financial crisis. The slowdown has been greatest in the advanced economies, particularly in the United States, where the housing market correction continues to exacerbate financial stress. The emerging and developing economies have so far been less affected by fi nancial market developments and have continued to grow at a rapid pace, led by China and India, although activity is beginning to slow in some countries. At the same time, headline infl ation has increased around the world, boosted by the continuing buoyancy of food and energy prices. Policymakers around the world are facing a diverse and fast-moving set of challenges, and although each country's circumstances differ, in an increasingly multipolar world it will be essential to meet these challenges broadly, taking full account of cross-border interactions. The World Economic Outlook (WEO) presents the IMF staff's analysis and projections of economic developments at the global level, in major country groups (classified by region, stage of development, etc.), and in many individual countries. It focuses on major economic policy issues as well as on the analysis of economic developments and prospects. It is usually prepared twice a year, as documentation for meetings of the International Monetary and Financial Committee, and forms the main instrument of the IMF's global surveillance activities.

China in Latin America

China in Latin America
Author: Robert Evan Ellis
Publisher:
Total Pages: 348
Release: 2009
Genre: Business & Economics
ISBN:

"Through exhaustive field research and interviews, Ellis inventories, country by country, China's rapidly expanding commercial and diplomatic presence in Latin America and the Caribbean. The irresistible allure of trade with the Chinese is a mixed blessing for the region: to transport raw materials and agricultural goods, a new East-West infrastructure is expanding Pacific coast ports from Mexico to Chile, once again leaving Latin America overly dependent on the export of low-value-added commodities. And although China's motives may be primarily commercial, the implications of its incursions are geopolitical: visiting Chinese leaders have declared Argentina, Brazil, Mexico, and Venezuela to be "strategic partners." As Ellis documents, China is investing heavily in Venezuelan crude oil, despite worries over Hugo Chávez's volatility and fears of embroiling itself in disputes between Caracas and Washington. China - together with illiberal petrostates - is a vital backstop for Chávez's authoritarian populist project and unrelenting drive to undercut U.S. interests and influence in the region. Inexplicably, Foggy Bottom has seemed largely oblivious to this concerted geopolitical challenge so close to home." -- www.foreignaffairs.com (Oct.15, 2010).

Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa

Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa
Author:
Publisher: World Bank Publications
Total Pages: 220
Release: 2009
Genre: Africa, North
ISBN: 0821377779

China and India's spectacular economic rise over the last two decades has accelerated their trade and investment flows with the Middle East and North Africa (MENA), particularly with the oil-producing countries. And while these flows are still small, China and India's presence in the region is on the rise. This report focuses on the following questions: what have been evolution and the impact of MENA's trade and investment relations with China and India? what actions can be taken to maximize the benefits from these relations and to enhance MENA's international integration? The main findings indicate that the region as a whole has benefited from the rise of China and India in terms of better terms of trade, significant increases in oil and gas exports, and cheaper imports. However, producers of industrial goods have been negatively-and in a few cases severely-affected by competition with the two Asian countries in both third and domestic markets. While China and India are investing more in MENA, they are contributing very little to job creation or to the transfer and diffusion of technology. Faster growth in the two Asian countries-and the associated higher demand for energy-will increase revenues from oil and the difficult choices associated with their management. For the labor-abundant, non oil-producing countries, competition with China and India will increase. But the lack of competitive manufacturing industries and services, the insufficient attention given in the past to building technological capabilities and promoting openness and entrepreneurship are constraining their ability to respond to competition. They need to accelerate productivity to tackle unemployment, especially among youth. This may require the broader institutional changes seen in China and India-suggesting the importance of a pragmatic reform agenda that can accelerate productivity, trade, and investment in the region.

China's and India's Challenge to Latin America

China's and India's Challenge to Latin America
Author: Daniel Lederman
Publisher: World Bank Publications
Total Pages: 362
Release: 2008-10-31
Genre: Political Science
ISBN: 0821373099

The economic successes of China and India are viewed with admiration but also with concern because of the effects that the growth of these Asian economies may have on the Latin American and Caribbean (LAC) region. The evidence in 'China's and India's Challenge to Latin America' indicates that certain manufacturing and service industries in some countries have been negatively affected by Chinese and Indian competition in third markets and that LAC imports from China and India have been associated with modest unemployment and adjustment costs in manufacturing industries. The book also provides substantial evidence of positive aggregate effects for LAC economies associated with China's and India's greater presence in world exports, financial flows, and innovation. Chinese and Indian growth is creating new production possibilities for LAC economies, particularly in sectors that rely on natural resources and scientific knowledge.

Economic Transitions with Chinese Characteristics

Economic Transitions with Chinese Characteristics
Author: Arthur Sweetman
Publisher: Queen's School of Policy Studies
Total Pages: 236
Release: 2009
Genre: Business & Economics
ISBN:

Economic Transitions with Chinese Characteristics: Social Change During Thirty Years of Reform explores a broad set of issues from an economic perspective. It addresses issues ranging from land tenure and housing to migration, labour markets, healthcare, demographics, and more. After 30 years of incredibly rapid economic growth, standards of living in China have increased appreciably and many families have been raised from poverty. New concerns, such as economic inequality and environmental degradation, are, however, arising. Economic issues related to China's reforms are explored in an accessible manner by a wide array of Chinese and international scholars who use this anniversary to take stock of, and provide insight into, the remarkable transitions underway. Contributors include Bruce Anderson (Queen's University), Gordon Betcherman (World Bank), John Cai (Fudan University), Jie Chen (Fudan University), Zhao Chen (Fudan University), Weili Ding (Queen's University), Julan Du (Chinese University of Hong Kong), Peilei Fan (Michigan State University), Emily M. Hill (Queen's University), Gary H. Jefferson (Brandeis University), Stever F. Lehrer (Queen's University), Shuzhuo Li (Xi'an Jiaotong University), Xiaofeng Liu (Fudan University), Ming Lu (Fudan University), Changyuan Luo (Fudan University), Warren Mabee (Queen's University), John Meligrana (Queen's University), Stephen Morgan (University of Nottingham), Naoki Murakami (Nihon University), Wenwei Ren (Fudan University), Ana Revenga (World Bank), Yucheng Sang (Fudan University), Christoph M. Schimmele (University of Victoria), Arthur Sweetman (Queen's University), Minna Hahn Tong (World Bank), Guanghua Wan (Yunnan University), Yongqin Wang (Fudan University), Kailei Wei (Hainan University), Guanzhong James Wen (Trinity College), Sonia M.L. Wong (Lingnan University), Zheng Wu (University of Victoria), Rudai Yand (Peking University), Shujie Yao (University of Nottingham), Yang Yao (Peking University), Linda C.W. Yung (Chinese University of Hong Kong), Jun Zhang (Fudan University), Yan Zhang (Fudan University), Ye Zhang (Nanjing University), Yuan Zhang (Fudan University), and Zhiyao Zhang (Fudan University)

Foreign Direct Investment in South Asia

Foreign Direct Investment in South Asia
Author: Pravakar Sahoo
Publisher: Springer Science & Business Media
Total Pages: 378
Release: 2013-10-01
Genre: Business & Economics
ISBN: 8132215362

During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.