How does violence affect foreigndirectinvestment (FDI) in developing countries? Most research on this question examines political violence, such as war, terrorism, or political instability. However, we know little about how criminal violence – which has wreaked havoc in many countries – might affect FDI. Furthermore, most studies of FDI have analyzed cross-national variation, not looking within countries. This paper analyzes effectsof criminal violence on FDI in Mexican states between 1999 and 2012. This case is important to understand because Mexico is one of the top global recipients of FDI. At the same time, violence related to drug trafficking organizations has killed tens of thousands of people in Mexico in recent years, but scholars are just beginning to understand the conflict’s wider effects. The paper’s models use original data on territory of drug- trafficking organizations. Interestingly, measures of criminal violence and organized crime are not directly associated with FDI. However, we find a conditional deterrent effect: Factors theorized to attract FDI (democracy, economicgrowth, and human capital proxied with average schooling years) are only associated with FDI when homicide rates are low.
The industry is defined as the engine ofeconomicgrowth. According to the laws of Kaldor, the rapid growthof manufacturing output directly affects the in- crease in labor productivity by increasing returns to scale. Thus, productivity is endogenous to economic activity, which, in turn, results in a greater demand for products that directly affect competitiveness and increase productivity. Recent studies seem to confirm this theory by showing that national economies, such as Mexico, have been unable to complete a process of industrialization, generat- ing structural difficulties and imposing limits to growth. Productivity, stuck in a system that does not allow growth rate in manufacturing, is hampered by the inability of industrialization (Calderón Villarreal & Sánchez Juárez, 2011).
Following modest economic expansion in the first half of this year, the con- struction of a hydropower facility in eastern Iceland and subsequent work on a new aluminium smelter that it would serve, along with public infrastructure investment, will lift growth above its estimated potential rate of just below 3 per cent. This should have spill-over effectson domestic demand, which has been held back by the need for repairing balance sheets after the spending spree in the late 1990s. Export demand is likely to be less supportive to growth than during the downturn, given the adverse effect on competitiveness of the higher exchange rate. However, higher fish- ing quotas and firming market growth should underpin exports going forward. With import demand picking up because of the increased construction, the current balance is expected to move into deficit. The unemployment rate is projected to peak at around 3½ per cent before receding gradually. Given the current slack in the econ- omy, inflation is expected to remain near the target over the projection period. None- theless, inflationary pressures are likely to build as work on the aluminium-related investment projects accelerates in the middle of the decade, requiring a prompt and ideally pre-emptive policy response.
(2007) conclude that private enterprises in China are forced to look for a foreign investor in order to escape the constraints imposed by the Chinese state-owned banking sector, while foreign investors are channelled toward business partnerships with Chinese state-owned enterprises (SOEs) as a result of frequent intervention by state bureaucrats. The forced joint venture is emblematic of the legacy of distortions endemic within Chinese industry whereby, before 1986 foreign firms had to enter into joint ventures with a Chinese partner - typically a bureaucratically imposed state-owned enterprise, or a shortlist of enterprises that the foreign investor would not have selected given a free choice. Such joint-venture, or ownership, restrictions are now largely removed from manufacturing (but with some notable exceptions such as automobile manufacturing) and, to a lesser extent, the services sector. It is further argued that business cooperation between the local Chinese enterprise sector and SOEs is a rarity, and this leads to an incapacity of China’s state dominated industry to behave in an entrepreneurial manner. These findings accord with the conventional wisdom of many researchers studying inward FDI into China.
There are several channels through which foreign aid can foster exports from donors to recipients at the bilat- eral level: First, donors can use foreign aid as an ‘opening- door policy’ to establish or reinforce official relationships and to present the country as a trustworthy exporter. Second, when a donor gives aid for trade that is dedi- cated to infrastructure, to enhancing production capacity or to trade facilitation in general, these measures should reduce trade costs and hence boost exports. Third, un- der the premise that aid promotes trade, and trade influ- ences income, aid can be seen as having an indirect ef- fect on income. Tied aid has also been used to promote donor exports by linking the transfer to the purchase of goods and services from the donor (Arvin & Baum, 1997; Arvin & Choudhry, 1997). Finally, a long-term aid rela- tionship can foster goodwill towards the donor, incen- tivizing firms in the recipient country to buy goods from the donor country (Arvin & Baum, 1997).
Considering the management ofinvestment projects, it should be pointed out that the evaluation of the investments economic efficiency, based on generally accepted methods, does not allow obtaining a consistent result. Therefore, investment decisions cannot be considered economically reasonable and expedient. Indeed, in theory and practice ofeconomic management ofinvestment projects, methods for estimating the economic efficiency of investments are usu- ally implemented based on the analysis of the values of such economic indicators as net present value (NPV), simple or discounted payback period (PP, DPP), internal rate of return (IRR), rate of return (ARR), profitability index (PI), etc. However, analyzing the results of using such methods, it is necessary to state the fact that the values ofeconomic Customers do not always make the right investment decision. The simultaneous use of several economic indicators to assess the economic efficiency ofinvestment projects can lead to ambiguous results (Khlynin & Khoroshilova, 2011). Moreover, the well-known economic criteria for accepting investment projects for implementation that exist for the eco- nomic indicators under consideration are theoretically not sufficiently substantiated, and from a practical point of view, not feasible. I would like to draw attention to the fact that this is not related to the probabilistic mechanism underlying the calculation of the economic indicators under consideration, which involves the use of verified methods of forecasting cash flows in the future, but primarily with the insufficient development of the theoretical and methodological principles of assessing economic efficiency ofinvestment projects.
The results conﬁrm the importance of gov- ernance infrastructure, as measured by GII and the KKZL indices. The GII index provides more explanatory power than ESI and HDI as measured by the coeﬃcients of determination, and this is true of both samples. In general, the GII index provides more explanatory power than do any of its components (except regula- tory burden), while the HDI index does not provide much advantage over any of its com- ponents. The results also suggest that education is the most important of the HDI variables (education, per capita GDP and life expec- tancy) as judged by the size of its coeﬃcient, and this is true for both samples. When con- sidering the variables that comprise the gover- nance (GII) index, the regulation coeﬃcient is larger than any of the other coeﬃcients, sug- gesting that open economies with free markets will attract more FDI than will economies in which external and internal competition are discouraged. This is true regardless of a coun- tryÕs stage of development, although the eﬀect is marginally weaker for the developing coun- try sample. In both samples, the second most
The Peruvian economy has been showing steady economicgrowth that has continuously extended for more than two decades, despite showing some episodes of slowdown in the wake of the latest crisis in international financial markets. Within this context, a factor that has contributed decisively to the dynamism of domestic production has been the flow ofForeignDirectInvestment (FIED), which has meant the entry of large sums offoreign capital oriented towards different sectors of our economy, favoring expansion. These capital flows have been generated by the opportunities that are offering the country, such as the possibility to obtain high rates of return with a favorable economic environment for private investment and respect for the free market. In this article seeks to explain what has been its impact oneconomicgrowth it through a model of cointegration between Gross Domestic Product (GDP) and the Flow ofForeignDirectInvestment (FIED).
courts competence to settle disputes on issues susceptible to be regulated by international treaties. The Argentine authorities argue that the consent to foreign jurisdiction admitted in other international agreements signed by Argentina (such as Inter-American Convention on Human Rights -known as the Pacto de San José) and in public sector acts of the juri gestionis type (in which the state acts within the sphere of patrimonial rights at a same level than physical persons), does not preclude the possibility of a posteriori control of constitutionality by a local court. The thrust of the argument is that, traditionally, the consent to foreign jurisdiction implied the possibility to exercise judiciary control by one or more local courts, and that this practice does not go against international law principles. In Rosatti (2003), the General Attorney argues that the combination of BITs and ICSID procedures prevents the exercise of such control. This is argued to be the result of a mixture of elements typically private (investment and the rights thereof) with others characteristically public (BITs among sovereign states). In sum, the present Argentinean authorities reject the concept that Argentina can anticipatorily (by means of a law approving a BIT) or definitively (by means of a law approving an international arbitration mechanism) waive its right to undertake constitutionality control of certain acts in domestic courts. This line of argument maintains that the BIT-ICSID combination is “hermetic” (cannot be abandoned) and “self-referring” (through self-interpretation), thus making it incompatible with the Argentinean legal system in so far as it prevents an examination of the compatibility between the letter, the interpretation and the enforcement of the treaty on the one hand, and domestic constitutional principles on the other (by definition of a superior legal hierarchy to an international treaty). Indeed, the ICSID convention envisages the intervention of local courts exclusively to enforce the award made by an arbitration panel.
The unemployment rate gives a relative idea of the overall economic health of a country. This paper’s aim was to explore, understand and measure the positive or negative relationship be- tween foreigndirectinvestment and government investment with unemployment in Ecuador. The ordinary least square regression model was used to determine if there were any relations between the variables and to measure them. The databases used for this econometric analysis were generated and published by Ecuador’s Central Bank, the Ecuadorian National Institute of Statistics (INEC) and the National Secretariat of Planning and Development (SENPLADES). The results show significant relations between government investment and unemployment. On the contrary, there is no relationship between foreigndirectinvestment and unemployment for the Ecuadorian case.
We develop a microeconomic model to explain why sanction policies used by developed countries have had ambiguous effects to reduce drug trafficking in developing countries. In the model, a country receives FDI depending on its government effort to reduce drug exports. However, local drug producers lobby and offer contributions whose impact depends on the level of government corruption. The government sets the level of enforcement against drug trafficking taking into account the contributions paid and the welfare of the local habitants. Analytically, we use the common agency theory to justify and explain diverse sanction policy outcomes. We also show evidence about the relationships among drug trafficking, corruption and FDI for some Latin-American countries.
ding of collections, library closures and a growing increase in usage were observed in 2012. Changes in content consumption habits are also highlighted, with special attention to adaptations to digital change. Facts 2012: the operating costs of Spa- nish libraries amounted to 990.1 million euros (+0.54% compared to 2010); if the increase in the CPI is taken into account, the cost increase is actually 5%. Personnel expenses represent 66.9%. Public libraries (PLs) reported 594 fewer employees than in 2010 and there were 154 fewer in academic libraries (-5.6% and -2.6%, respectively). The PLs incorporated 3.5 mi- llion volumes (-31.2% compared to 2010). Visits to libraries: Total 216.4 million (in PLs +20.5% / 2010); 401 libraries (20%) did not have computers for public use and 46.5% had no opac yet.
129 precipitation on P. pinaster growth increased beginning in the 1970s, while the positive influence of summer precipitation on P. sylvestris growth remained stable. These results agree with previous reports on pine species in the Mediterranean area, which suffered a change in growth response to climatic conditions in the second half of the 20th century (Andreu et al., 2007; Bogino and Bravo, 2008; Vieira et al., 2010; Campelo et al., 2013). Global studies around the Mediterranean basin indicate that winter and spring precipitation increased and summer precipitation decreased during the second-half of the twentieth century (Bradley et al., 1987; Maheras, 1988; Díaz et al., 1989). Mediterranean pines evolved during the Pliocene under tropical-like climate, before the onset of the Mediterranean climate, as a component of the pre-Mediterranean Arcto-Tertiary flora (Verdú et al., 2003; Petit et al., 2005). This species survived to a past gradual increase of aridity during the transition to Mediterranean conditions, which may have led to its characteristic growth plasticity (Chambel et al., 2007). Mediterranean Pinus species are considered well adapted to withstand drought by reducing growth as water availability decreases and increasing growth as conditions become favourable (Rathgeber et al., 2005; De Luis et al., 2007; Camarero et al., 2010; Pasho et al., 2012). This increase of winter and spring precipitation combined with the increasingly harsh climatic conditions during summer may have enhanced the importance of precipitation at the beginning of the growing season on the growthof species subject to higher drought stress conditions during summer, such as P. halepensis and P. pinaster. On the other hand, P. sylvestris, growing under higher water availability during the whole year, didn’t suffer that swift in the influence of the climatic variables.
Mundell (1995) considers two different scenarios with regard to the stability of the exchange rate of the euro. The unattractive scenario is one in which both the EMU and the US strive to build their own currency areas encouraging transatlantic exchange rate instability. Under this scenario, the Latin American economies would be in the dollar area and Euroland FDI on MERCOSUR countries would be affected by the potential volatility of the dollar/euro exchange rate. Mundell’s attractive scenario considers a restructuring of the International Monetary System toward a system of fixed exchange rate parities. In a similar vein, Salvatore (2000) proposes macroeconomic policy coordination among the three main blocks¾US, Europe and Japan¾in order to avoid exchange rate misalignments that could jeopardize the stability of the international trade and financial systems. Both recommendations would create exchange rate stability, but the problem posed by Mundell is what the anchor would be. According to Kenen (1995), a scenario of cooperation is highly unlikely in the short and medium term because the European Central Bank in trying to maintain its credibility, especially since it is a new institution, would oppose it.
Posttraumatic growth research has only recently begun to be considered in terms of sexual minority stress (Vaughan, 2007). Our study dealt with the perception of social stressors, but not of a traumatic event as such. In our context, these direct or indirect experiences make up what is called “minority stress.” This is cumulative stress which, as indicated in other studies, (Barrientos, G´omez, & C´ardenas, 2016) has much more persis- tent and harmful effectson this population than several other serious and acute events described as traumatic. For example, Barrientos, C´ardenas, and G´omez (2016) showed that repeated mockery and rejection of identity in their primary groups had a more serious effect on the lives of gay men than did an event of physical aggression. Certainly, this type of situation must be analyzed in further detail to make a substantive contribution to the concept of PTG, which should show stressful vital situations and stress accumulation processes that minority groups must live with daily, in a context of hostility and rejection.