Why and how FDI stocks are a biased measure of MNE affiliate activity

Many international business (IB) studies have used foreign direct investment (FDI) stocks to measure the aggregate value-adding activity of multinational enterprises (MNE) affiliates in host countries. We argue that FDI stocks are a biased measure of that activity, because the degree to which they overestimate or underestimate affiliate activity varies systematically with host-country characteristics. First, most FDI into countries that serve as tax havens generate no actual productive activity; thus FDI stocks in such countries overestimate affiliate activity. Second, FDI stocks do not include locally raised external funds, funds widely used in countries with well-developed financial markets or volatile exchange rates, resulting in an underestimation of affiliate activity in such countries. Finally, the extent to which FDI translates into affiliate activity increases with affiliate labor productivity, so in countries where labor is more productive, FDI stocks also result in an underestimation of affiliate activity. We test these hypotheses by first regressing affiliate value-added and affiliate sales on FDI stocks to calculate a country-specific mismatch, and then by regressing this mismatch on a host country's tax haven status, level of financial market development, exchange rate volatility, and affiliate labor productivity. All hypotheses are supported, implying that FDI stocks are a biased measure of MNE affiliate activity, and hence that the results of FDI-data-based studies of such activity need to be reconsidered. [ABSTRACT FROM AUTHOR]

Terahertz detection of illegal objects

This paper describes the main parameters - contrast, spatial resolution, and thermal sensitivity - which define the performance of any stand-off imaging system. The origin of the signature for both metal and dielectric objects hidden under clothing in the frequency range from 100 GHz to 500 GHz is discussed. At 100 GHz the signature is dominated by reflection whilst at 500 GHz it is dominated by emission. A 94-GHz-passive millimetre-wave imaging system has been designed and fabricated to image objects under clothing. This imager is based on a Schmidt camera folded using polarisation techniques.

Standoff detection of weapons and contraband in the 100 GHz to 1 THz region

The techniques and technologies currently being investigated to detect weapons and contraband concealed on persons under clothing are reviewed. The basic phenomenology of the atmosphere and materials that must be understood in order to realize such a system are discussed. The component issues and architectural designs needed to realize systems are outlined. Some conclusions with respect to further technology developments are presented.