Journal ArticleDOI
The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?
Tim Büthe,Helen V. Milner +1 more
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In this article, the authors argue that international trade agreements (GATT/WTO and preferential trade agreements) provide mechanisms for making commitments to foreign investors about the treatment of their assets, thus reassuring investors and increasing investment.Abstract:
The flow of foreign direct investment into developing countries varies greatly across countries and over time. The political factors that affect these flows are not well understood. Focusing on the relationship between trade and investment, we argue that international trade agreements—GATT/WTO and preferential trade agreements (PTAs)—provide mechanisms for making commitments to foreign investors about the treatment of their assets, thus reassuring investors and increasing investment. These international commitments are more credible than domestic policy choices, because reneging on them is more costly. Statistical analyses for 122 developing countries from 1970 to 2000 support this argument. Developing countries that belong to the WTO and participate in more PTAs experience greater FDI inflows than otherwise, controlling for many factors including domestic policy preferences and taking into account possible endogeneity. Joining international trade agreements allows developing countries to attract more FDI and thus increase economic growth.read more
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The Analysis of Time Series: An Introduction
TL;DR: The analysis of time series: An Introduction, 4th edn. as discussed by the authors by C. Chatfield, C. Chapman and Hall, London, 1989. ISBN 0 412 31820 2.
Journal ArticleDOI
Democracy, foreign direct investment and natural resources
Elizabeth Asiedu,Donald Lien +1 more
TL;DR: In this paper, the authors examined whether natural resources in host countries alter the relationship between democracy and foreign direct investment and found that the effect of democracy on FDI depends on the size and not the type of natural resources.
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The Puzzle of Cooperation in International Debt, from Reputation and International Cooperation: Sovereign Debt across Three Centuries
TL;DR: The author examines the relationship between reputation and cooperation in the context of international debt and finds that reputations and cooperation under Anarchy are driven by different underlying mechanisms, namely debt and reputation.
Journal ArticleDOI
The design of international trade agreements: introducing a new dataset
TL;DR: This article showed that on average preferential trade agreements increase trade flows, but that this effect is largely driven by deep agreements and that provisions that tackle behind-the-border regulation matter for trade flows.
Journal ArticleDOI
Do We Really Know That the WTO Increases Trade? Comment
TL;DR: In a recent article in the American Economic Review, Andrew K. Rose as discussed by the authors found that countries belonging to the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), did not trade more than countries that abstained from membership.
References
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Book
Econometric Analysis of Cross Section and Panel Data
TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Book
Analysis of Panel Data
TL;DR: In this paper, the authors propose a homogeneity test for linear regression models (analysis of covariance) and show that linear regression with variable intercepts is more consistent than simple regression with simple intercepts.
Journal ArticleDOI
What to do (and not to do) with time-series cross-section data
Nathaniel Beck,Jonathan N. Katz +1 more
TL;DR: The generalized least squares approach of Parks produces standard errors that lead to extreme overconfidence, often underestimating variability by 50% or more, and a new method is offered that is both easier to implement and produces accurate standard errors.
Book
Estimation and inference in econometrics
TL;DR: In this paper, the authors propose a nonlinear regression model based on the Gauss-Newton Regression for least squares, and apply it to time-series data and show that the model can be used for regression models for time series data.
Posted Content
Aid, Policies, and Growth
TL;DR: Burnside and Dollar as mentioned in this paper used a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth of per capita GDP and found that aid has a positive impact on growth in developing countries with good fiscal, monetary, and trade policies.
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