Structural change and foreign direct investment: globalization and regional economic integration

Pereira, Alvaro; Jalles, João; Andresen, Martin
April 2012
Portuguese Economic Journal;Apr2012, Vol. 11 Issue 1, p35
Academic Journal
This paper investigates flows of inward and outward foreign direct investment (FDI) and FDI-to-GDP ratios in a sample of 62 countries over a 30 year time span. Using several endogenous structural break procedures (allowing for one and two break points), we find that: (1) the great majority of the series have structural breaks in the last 15 years, (2) post-break FDI and FDI/GDP ratios are substantially higher than the pre-break values, and (3) most breaks seem to be related to globalization, regional economic integration, economic growth, or political instability. Static and dynamic panel-data analyses accounting for and/or addressing endogeneity, simultaneity, nonstationarity, heterogeneity and cross-sectional dependence show that FDI is negatively related to exchange rate volatility and GDP per capita, but positively related to some regional integration agreements, trade openness, GDP, and GDP growth. Most notably, the European Union is the only regional economic integration unit found to consistently have significant and positive effects on FDI.


Related Articles

  • IT'S A FACT.  // World Almanac & Book of Facts;2006, p790 

    The article reports that in 1973, when Ireland joined the European Union, it was the poorest member nation, with a per capita GDP amounting to only 59% of the EU average. In 2004, the "Celtic Tiger" had a per capita GDP of $31,900; which was 19% above the EU average and was the 2nd highest in...

  • Impacts of and experience with EU membership of the countries of Central, Eastern and South - Eastern Europe. Country study on Bulgaria. Yorgova, Nadya // Eastern Journal of European Studies;Dec2011, Vol. 2 Issue 2, p169 

    The current paper focuses on the issues Bulgaria faced and is still facing in the process of joining and being a full-fledged member of the European Union in the context of ongoing economic obstacles. By spotlighting on different macroeconomic aspects, the article examines changes and...

  • LA SITUACIÓN ECONÓMICA española y sus perspectivas inmediatas. Rosell, Valentí Pich // Revista Contable;jun2012, Issue 1, p12 

    No abstract available.

  • IMPACT OF FOREIGN CAPITAL INFLOWS ON DOMESTIC SAVING OF PAKISTAN. Shaheen, Salma; Ali, Mahnaz Muhammad; Maryam, Farheen; Javed, Fumaira // Interdisciplinary Journal of Contemporary Research in Business;Feb2013, Vol. 4 Issue 10, p443 

    Developing countries like Pakistan heavily depend on foreign capital inflows to meet the gap between domestic saving and investment. The study analyze the effect of foreign capital inflows on domestic saving along with other variables by using time-series tools i.e Co-integration and ECM on time...

  • India is a Relatively Unattractive Insurance Market for Foreign Insurers, Says Report.  // Asia Insurance Review;May2008, p18 

    The article reports that according to India Insurance Report by Research and Markets, India's insurance industry, as compared to other Asian countries at present, is a relatively unattractive insurance market for foreign insurers. It mentions that India's current BMI's Insurance Business...

  • Economic Globalization and Financial Development in East Asia: A Panel Cointegration and Causality Analysis. Law, Siong Hook; Azman-Saini, W. N. W.; Tan, Hui Boon // Emerging Markets Finance & Trade;Jan/Feb2014, Vol. 50 Issue 1, p210 

    This study examines the role of economic globalization in financial development in eight East Asian economies. The heterogeneous panel cointegration test reveals that cointegration is present among economic globalization, institutions, financial development, real gross domestic product per...

  • Economic Globalization, Industrialization and Deindustrialization in Affluent Democracies. Brady, David; Denniston, Ryan // Social Forces;Sep2006, Vol. 85 Issue 1, p297 

    This study reexamines the relationship between economic globalization and manufacturing employment in affluent democracies. After reviewing past research, including the well-supported Rowthorn model, we propose a differentiation-saturation model that theorizes that globalization has a...

  • Convergence and Divergence in the European Union for New Member States. Vladimir, Georgescu; Daniela, Manea // Ovidius University Annals, Series Economic Sciences;2012, Vol. 12 Issue 2, p54 

    The objective of the article is to investigate the phenomenon of economic convergence across the new member states of the European Union, over the period 2000-2010. A significant aspect is considered to be whether convergence is the general rule, applicable to different countries, or whether in...

  • ECONOMIC GROWTH AND BETA-CONVERGENCE BETWEEN EU AND UKRAINE. VERSTIAK, Andrii; VERSTIAK, Oksana; ISHCHENKO, Svyatoslav; ZIUKOV, Serhii // Intellectual Economics;2014, Vol. 8 Issue 1, p128 

    The empiric analysis of convergence processes between Ukraine and EU countries showed that the most spreading method of convergence presence in the rate of economic development is the reduction of the inequality of GDP per capita level among the countries groups. The main characteristics of the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics