International financial competitiveness and incentives to foreign direct investment /
Jochem, Axel
International financial competitiveness and incentives to foreign direct investment / Axel Jochem. - Frankfurt am Main : Deutsche Bundesbank, 2008 - 38 p. - Discussion paper. Series 1: economic studies ; no. 29/2008 . - Discussion paper (Deutsche Bundesbank). Series 1: economic studies no. 29/2008 .
Bibliografía: p. 18-21.
1. Introduction -- 2. Corporate valuation and real options -- 3. Empirical analysis -- 3.1. Financial competitiveness. 3.2. Determinants of financial competitiveness. 3.3. financial competitiveness and incentives to invest -- 4. Conclusion -- References -- Apendix A: Entry decision under uncertainty and competition -- B: Calculating the market value of FDI stocks.
In this paper an index of financial competitiveness is calculated that corresponds to the market-to-book ratio of inward FDI stocks. For a panel of five advanced economies from 1980 to 2006 it is shown that price competitiveness, stable inflation rates and registered patents have a positive impact on the index. Institutional factors like EMU membership or Anglo-Saxon legislation also play a role. Financial competitiveness in turn encourages FDI inflows whereas it benefits fixed investment relative to M&A. There is also some evidence that an innovative environment accelerates investment decisions by promoting competition among investors.
9783865584755
INVERSIONES EXTRANJERAS
INVERSIONES DIRECTAS
COMPETITIVIDAD
332.673
International financial competitiveness and incentives to foreign direct investment / Axel Jochem. - Frankfurt am Main : Deutsche Bundesbank, 2008 - 38 p. - Discussion paper. Series 1: economic studies ; no. 29/2008 . - Discussion paper (Deutsche Bundesbank). Series 1: economic studies no. 29/2008 .
Bibliografía: p. 18-21.
1. Introduction -- 2. Corporate valuation and real options -- 3. Empirical analysis -- 3.1. Financial competitiveness. 3.2. Determinants of financial competitiveness. 3.3. financial competitiveness and incentives to invest -- 4. Conclusion -- References -- Apendix A: Entry decision under uncertainty and competition -- B: Calculating the market value of FDI stocks.
In this paper an index of financial competitiveness is calculated that corresponds to the market-to-book ratio of inward FDI stocks. For a panel of five advanced economies from 1980 to 2006 it is shown that price competitiveness, stable inflation rates and registered patents have a positive impact on the index. Institutional factors like EMU membership or Anglo-Saxon legislation also play a role. Financial competitiveness in turn encourages FDI inflows whereas it benefits fixed investment relative to M&A. There is also some evidence that an innovative environment accelerates investment decisions by promoting competition among investors.
9783865584755
INVERSIONES EXTRANJERAS
INVERSIONES DIRECTAS
COMPETITIVIDAD
332.673