How does country risk matter for foreign direct investment?

In this paper, we aim to identify the political and financial risk components that matter most for the activities of multinational corporations. Our paper is the first paper to comprehensively examine the impact of various components of not only political risk but also financial risk on inward FDI, from both long-run and short-run perspectives. Using a sample of 93 countries (including 60 developing countries) for the period 1985-2007, we find that among the political risk components, government stability, socioeconomic conditions, investment profile, internal conflict, external conflict, corruption, religious tensions, democratic accountability, and ethnic tensions have a close association with FDI flows. In particular, socioeconomic conditions, investment profile, and external conflict appear to be the most influential components of political risk in attracting foreign investment. Among the financial risk components, only exchange rate stability yields statistically significant positive coefficients when estimated only for developing countries. In contrast, current account as a percentage of exports of goods and services, foreign debt as a percentage of GDP, net international liquidity as the number of months of import cover, and current account as a percentage of GDP yield negative coefficients in some specifications. Thus, multinationals do not seem to consider seriously the financial risk of the host country.

Export platform foreign direct investment : theory and evidence

This paper proposes a model that accounts for “export platform” FDI – a form of FDI that is common in the data but rarely discussed in the theoretical literature. Unlike the previous literature, this paper’s theory nests all the typical modes of supply, including exports, horizontal and vertical FDI, horizontal and vertical export platform FDI. The theory yields the testable hypothesis that a decrease in either inter-regional or intra-regional trade costs induces firms to choose export platform FDI. The empirical analysis provides descriptive statistics which point to large proportions of third country exports of US FDI, and an econometric analysis, whose results are in line with the model’s predictions. The last section suggests policy implications for nations seeking to attract FDI.

Research review : searching for a new framework for Thailand's foreign policy in the post-cold war era

Thai foreign policy in the 1990s has been said to be contingent on the government in power, which changes between (or within) these groups and vacillates between pro-democratic reformists/principle-pursuers and the conservatives/profit-seekers. In these studies, Thailand’s Indochinese policy has often been referred to as a typical consequence of politics between the pragmatists and the reformists. However, whether or not domestic oppositional politics is the key determinant of foreign policy in the post-Cold War era still requires further examination, precisely because the model is now facing serious challenges between theory and reality. In this paper, I review the existing arguments concerning Thailand’s foreign policy in the post-Cold War Era and point out their limitations and questions for future study.

Impact of foreign capital entry in the Indonesian banking sector

After the Asian financial crisis of 1997/98, the Indonesian banking sector experienced significant changes. Ownership structure of banking sector is substantially-changed. Currently, ownership of major commercial banks is dominated by foreign capital through acquisition. This paper examines whether foreign ownership changes a bank’s lending behavior and performance. Foreign banks tend to lend mainly to large firms; this paper examines whether the credit to small and medium-sized enterprises (SMEs) is affected by foreign capital entry into the Indonesian banking sector. Empirical results show that banks owned by foreign capital tend to decrease SME credit.

Transition from black to official markets for foreign exchange in Myanmar

We address the puzzle why the black market for foreign exchange thrives in Myanmar despite the successful unification of multiple exchange rates. A closer look at the black market reveals that its enduring competitiveness stems from its lower transaction costs. A question arising from this observation is how the official market, namely banks, can compete with and replace the black market. Our empirical analysis based on an original questionnaire survey of private export firms regarding their choices of currency trading modes suggests that banks can attract exporters by exploiting the economies of scope between currency trading and lending.

Avoiding the middle income trap : indigenous innovative effort vs foreign innovative effort

This paper investigates how innovation potential of a country contributes to avoid or escape the middle income trap. We measure innovation potentials of 77 countries from 1975 to 2010 from patent data. Then, we test whether indigenous innovative efforts or foreign ones help avoid and escape middle income traps

Regime survival strategies and the conduct of foreign policy in Egypt

エジプトではムバーラク大統領の国内政策と域内におけるエジプトの影響力低迷が引き金となって、2011年1月25日に抗議運動起こった。抗議運動はエジプト全土に拡がり、18日間の民衆的な反体制運動によってムバーラクは軍に見捨てられ、失脚に追い込まれた。この民衆蜂起によって警察は街頭から撤退し、シナイ半島の警察署は焼き放たれ、ムバーラクが率いていた国民民主党の建物や国内治安機関の本部は襲撃され、国家機関が数ヶ月にもわたって機能不全となり、ムバーラク体制の崩壊は国内的な混乱を招くこととなった。振り返れば、エジプトでの政治的大変動は社会的な革命へと展開することはできなかった。その理由は独裁体制からの移行を先導できる組織化された反体制勢力が存在しなかったためである。民衆による抗議運動は一時的に体制を転覆できても旧体制のエリートを分裂させることはできず、軍の影響下にある体制の復活を防ぐこともできなかった。2011年以降のエジプトは現在まで混乱状態に陥ったままであるが、1カ月に及ぶエジプト軍最高評議会(SCAF)の暫定統治、エジプト史上初の自由な大統領選挙によって選出された文民大統領のムルスィーによる一年余りの統治、そして2013年7月の軍事クーデターによって権力の座に就いたスィースィーの統治といった過程で、民衆蜂起がエジプトの外交関係に及ぼした影響はごく僅かであった。本稿は、現在のエジプトの外交政策が2011年の革命にほとんど影響を受けていないのはなぜか、またエジプトの統治者たちが政権の正統性、体制の強化および政治的な安定性を確保し、国内的な課題に対処するための戦略をいかに策定しているのかを説明することを試みる。本稿での主張は、ムバーラク以降のエジプトが体制の強化と保全のために外交政策を進めており、国内的な混乱によって地域内アクターへの依存度が高まっていることである。

Impacts of foreign exchange auctions on the informal market rate in Myanmar

Since the abolition of the official peg and the introduction of a managed float in April 2012, the Central Bank of Myanmar has operated the daily two–way auctions of foreign exchange aimed at smoothing exchange rate fluctuations. Despite the reforms to the foreign exchange regime, however, informal trading of foreign exchange remains pervasive. Using the daily informal exchange rate and Central Bank auction data, this study examines the impacts of auctions on the informal market rate. First, a VAR analysis indicates that the official rate did not Granger cause the informal rate. Second, GARCH models indicate that the auctions did not reduce the conditional variance of the informal rate returns. Overall, the auctions have only a quite modest impact on the informal exchange rate.

The impact of foreign firms on industrial productivity : evidence from Japan

With a newly constructed dataset on foreign firms in Japan for the period 1995-2008 from firm-level surveys, this paper estimates the impact of foreign firms on industrial productivity at the regional level. A Bayesian-model averaging approach is taken to account for model uncertainty resulting from various linkages between foreign firms and domestic industries. The results show that the foreign firms may contribute to industrial efficiency directly through their above-average productivity and indirectly through positive spillovers in intra-industry and local backward linkages. Forward linkages with foreign firms may have a negative impact on industrial productivity. However, these impacts depend on the nationality and entry mode of foreign investors. Aggregating foreign firms may mask their distinctive impacts on productivity.

A new way of teaching different subjects in a foreign language in the Building Engineering Degree at the Universidad Politécnica.

The European Union has been promoting linguistic diversity for many years as one of its main educational goals. This is an element that facilitates student mobility and student exchanges between different universities and countries and enriches the education of young undergraduates. In particular, a higher degree of competence in the English language is becoming essential for engineers, architects and researchers in general, as English has become the lingua franca that opens up horizons to internationalisation and the transfer of knowledge in today’s world. Many experts point to the Integrated Approach to Contents and Foreign Languages System as being an option that has certain benefits over the traditional method of teaching a second language that is exclusively based on specific subjects. This system advocates teaching the different subjects in the syllabus in a language other than one’s mother tongue, without prioritising knowledge of the language over the subject. This was the idea that in the 2009/10 academic year gave rise to the Second Language Integration Programme (SLI Programme) at the Escuela Arquitectura Técnica in the Universidad Politécnica Madrid (EUATM-UPM), just at the beginning of the tuition of the new Building Engineering Degree, which had been adapted to the European Higher Education Area (EHEA) model. This programme is an interdisciplinary initiative for the set of subjects taught during the semester and is coordinated through the Assistant Director Office for Educational Innovation. The SLI Programme has a dual goal; to familiarise students with the specific English terminology of the subject being taught, and at the same time improve their communication skills in English. A total of thirty lecturers are taking part in the teaching of eleven first year subjects and twelve in the second year, with around 120 students who have voluntarily enrolled in a special group in each semester. During the 2010/2011 academic year the degree of acceptance and the results of the SLI Programme have been monitored. Tools have been designed to aid interdisciplinary coordination and to analyse satisfaction, such as coordination records and surveys. The results currently available refer to the first and second year and are divided into specific aspects of the different subjects involved and into general aspects of the ongoing experience.

Tutoring and mentoring project for foreign students of forest engineering degrees

We present an innovative educational project dedicated to improve the academic performance of foreign students by enhancing the integration of international students during their academic attendance in the programs offered at Universidad Politécnica de Madrid?s School of Forest Engineering (Spain).

Main Headquarters for the foreign office

Proyecto de la sede del Ministerio de Asuntos Exteriores, Madrid

Integrated approach to foreign language in the building engineering degree at the Universidad Politécnica Madrid

The European Union has been promoting linguistic diversity for many years as one of its main educational goals. This is an element that facilitates student mobility and student exchanges between different universities and countries and enriches the education of young undergraduates. In particular,a higher degree of competence in the English language is becoming essential for engineers, architects and researchers in general, as English has become the lingua franca that opens up horizons to internationalisation and the transfer of knowledge in today’s world. Many experts point to the Integrated Approach to Contents and Foreign Languages System as being an option that has certain benefits over the traditional method of teaching a second language that is exclusively based on specific subjects. This system advocates teaching the different subjects in the syllabus in a language other than one’s mother tongue, without prioritising knowledge of the language over the subject. This was the idea that in the 2009/10 academic year gave rise to the Second Language Integration Programme (SLI Programme) at the Escuela Arquitectura Tecnica in the Universidad Politecnica Madrid (EUATM-UPM), just at the beginning of the tuition of the new Building Engineering Degree, which had been adapted to the European Higher Education Area (EHEA) model. This programme is an interdisciplinary initiative for the set of subjects taught during the semester and is coordinated through the Assistant Director Office for Educational Innovation. The SLI Programme has a dual goal; to familiarise students with the specific English terminology of the subject being taught, and at the same time improve their communication skills in English. A total of thirty lecturers are taking part in the teaching of eleven first year subjects and twelve in the second year, with around 120 students who have voluntarily enrolled in a special group in each semester. During the 2010/2011 academic year the degree of acceptance and the results of the SLI Programme are being monitored. Tools have been designed to aid interdisciplinary coordination and to analyse satisfaction, such as coordination records and surveys. The results currently available refer to the first semester of the year and are divided into specific aspects of the different subjects involved and into general aspects of the ongoing experience.

Generating segmental foreign accent

For most of us, speaking in a non-native language involves deviating to some extent from native pronunciation norms. However, the detailed basis for foreign accent (FA) remains elusive, in part due to methodological challenges in isolating segmental from suprasegmental factors. The current study examines the role of segmental features in conveying FA through the use of a generative approach in which accent is localised to single consonantal segments. Three techniques are evaluated: the first requires a highly-proficiency bilingual to produce words with isolated accented segments; the second uses cross-splicing of context-dependent consonants from the non-native language into native words; the third employs hidden Markov model synthesis to blend voice models for both languages. Using English and Spanish as the native/non-native languages respectively, listener cohorts from both languages identified words and rated their degree of FA. All techniques were capable of generating accented words, but to differing degrees. Naturally-produced speech led to the strongest FA ratings and synthetic speech the weakest, which we interpret as the outcome of over-smoothing. Nevertheless, the flexibility offered by synthesising localised accent encourages further development of the method.

Translocation of inserted foreign epitopes by a channelforming protein

Certain bacterial protein toxins are able to insert themselves into, and at least partially across, lipid bilayer membranes in the absence of any auxiliary proteins, by using unknown mechanisms to overcome the high energy barrier presented by the hydrophobic bilayer core. We have previously shown that one such toxin, colicin Ia, translocates a large, hydrophilic part of itself completely across a lipid bilayer in conjunction with the formation of an ion-conducting channel. To address the question of whether the colicin can translocate any arbitrary amino acid sequence, we have altered the translocated segment by inserting, singly, two different foreign epitopes. Colicins containing either epitope retain significant bactericidal activity and form channels of normal conductance in planar bilayers. Furthermore, antibodies added on the side of the bilayer opposite that to which the colicin was added interact specifically with the corresponding epitopes, producing an inhibition of channel closing. Thus, the inserted epitopes are translocated along with the rest of the segment, suggesting that a surprisingly small part of colicin Ia, located elsewhere in the molecule, acts as a nonspecific protein translocator.