Is FTA/EPA effective for a developing country to attract FDI? : simulation analysis based on an extended knowledge-capital model

To prepare an answer to the question of how a developing country can attract FDI, this paper explored the factors and policies that may help bring FDI into a developing country by utilizing an extended version of the knowledge-capital model. With a special focus on the effects of FTAs/EPAs between market countries and developing countries, simulations with the model revealed the following: (1) Although FTA/EPA generally ends to increase FDI to a developing country, the possibility of improving welfare through increased demand for skilled and unskilled labor becomes higher as the size of the country declines; (2) Because the additional implementation of cost-saving policies to reduce firm-type/trade-link specific fixed costs ends to depreciate the price of skilled labor by saving its input, a developing country, which is extremely scarce in skilled labor, is better off avoiding the additional option; (3) If a country hopes to enjoy larger welfare gains with EPA, efforts to increase skilled labor in the country, such as investing in education, may be beneficial.

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.

Do international flights promote FDI? : the role of face-to-face communication

Air transportation facilitates face-to-face interactions across borders for the spatial expansion of manufacturing production. I investigate the impact of international flights on FDI entry by Japanese firms. I find that FDI entry significantly increases with the weekly frequency of flights from Japan, and the positive impact increases with a proxy for an intensity of face-to-face communication between the parent firm and foreign affiliate. The results are robust to estimation methods, additional control variables, and definitions of face-to-face communication. Thus, the results suggest that flights encourage FDI entry through a reduction in face-to-face communication costs.

Calcium carbonate content and anisotropy of magnetic susceptibility of ODP Leg 172 sites

Sediments from Sites 1057 and 1061 of Ocean Drilling Program Leg 172 on the Blake Outer Ridge exhibit nearly isotropic magnetic susceptibility. Resolving the degree of anisotropy of magnetic susceptibility proved difficult in many samples because of the generally weak magnetic susceptibility of the sediments relative to the noise level of the susceptibility meters used. Lineation varies from 1.0 to 1.013 and foliation varies from 1.0 to 1.08 in the samples that pass rejection criteria. In general the foliation is better resolved than the lineation, particularly at Site 1061, where the foliation exhibits long-term trends that mimic the mean susceptibility. The changes in the foliation at this site are likely the result of changes in the magnetic mineralogy of the sediment. The poorly developed or absent magnetic fabric in the sediments overall can be attributed to high carbonate concentrations and to a circulation regime that was diffuse or with currents too weak to effectively align magnetic particles.

Observation of ferromanganese deposits in the Baltic Sea

Baltic sediments have been studied by Behrens, Munthe, Küppers, Spethmann, Apstein, Sjöstedt, Pratje and the writer. The following types of sediments have been observed: varved and non-varved late-glacial clays, gray and black, post-glacial muds, and sands. The organic content of late-glacial clays ordinarily is less than 1.3 per cent, and of post-glacial muds more than 3 per cent. Sediments containing intermediate quantities are scarce. This can be explained as a result of the changed balance between organic and inorganic sedimentation when the glacial period ended; the abundance of fresh detritus then suddenly ceased and inorganic sedimentation became very much slower than before; consequently, the relative amount of organic detritus increased. As most of the material was not subjected to biological analysis, it has not been possible to distinguish different ages among post-glacial sediments.

Nada de hacernos los locos

Fondo Margaritainés Restrepo

Dice el Mono Núñez: voy a morir de sentimiento, inspirador del Festival de Música de Ginebra, Valle

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Imágenes juguetonas

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Propone Restrepo Lince : un aeropuerto troncal y otro local

(Artículos periodísticos)

A pesar de los pesares, este es México lindo y querido : tiembla en México

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Con el Olaya Herrera, por que seremos tan raros, señor presidente

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A la vida hágale fuerza con la cabeza, Roberto Arango Mejía

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¡Ve, vos sos zurdo! : cuando voy por la calle 6

Fondo Margaritainés Restrepo

Trade Liberalization and Organizational Change

We embed a simple incomplete-contracts model of organization design in a standard two-country perfectly-competitive trade model to examine how the liberalization of product and factor markets affects the ownership structure of firms.In our model, managers decide whether or not to integrate their firms, trading off the pecuniary benefits of coordinating production decisions with the private benefits of operating in their preferred ways. The price of output is a crucial determinant of this choice, since it affects the size of the pecuniary benefits. In particular, non-integration is chosen at “low” and “high” prices, while integration occurs at moderate prices. Organizational choices also depend on the terms of trade in supplier markets, which affect the division of surplus between managers. We obtain three main results. First, even when firms do not relocate across countries, the price changes triggered by liberalization of product markets can lead to significant organizational restructuring within countries. Second, the removal of barriers to factor mobility can lead to inefficient reorganization and adversely affect consumers. Third, “deep integration” — the liberalization of both product and factor markets — leads to the convergence of organizational design across countries.