Browsing by Author "Teekasap, Pard"
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- ItemCAFTA-DR effects on FDI inflows, growth and distribution of the workforce : a system dynamics approach(Southern New Hampshire University, 2010-06-29) Teekasap, Pard; Frutos, Dinorah; Samii, MassoodAs regional trading arrangements have spread over the last decades, the study of the relation between trade agreements and foreign direct investment still presents difficulties due to the multi-dimensional character of such relationship. This paper presents a system dynamics model that attempts to shed new light on how some of the Central American Free Trade Agreement (CAFTA-DR). Specifically we look at how the growth and distribution of the workforce in the non-agricultural (or industrial) and agricultural sector in six CAFTADR country members. The model results indicate that the provisions we considered tend to industrialize member countries as well as expand the agricultural sector in some countries in the long run. In addition, the model indicates that the treaty provisions drive up the GDP per capita for all member countries.
- ItemCAFTA-DR effects on FDI inflows, growth and distribution of the workforce in Costa Rica : a system dynamics approach(Routledge, 2010-10) Frutos, Dinorah; Teekasap, Pard; Samii, MassoodAs regional trading arrangements have spread, enlarged and deepened over the last decades, the study of the relation between trade agreements and foreign direct investment still presents difficulties due to the multi-dimensional character of such relationship. This paper attempts to shed new light on how some of the Central American Free Trade (CAFTA) policies will impact FDI inflows on the manufacturing and agricultural sectors in Costa Rica. Specifically we look at how the growth and distribution of the workforce is affected by the treaty. The results show that the agreement provisions will have a positive effect on foreign direct investment. From these results it is possible to estimate that in the long run, the implementation of CAFTA has a higher probability of generating the intended benefits. System dynamics modelling is used in this paper.
- ItemCan country continuously compete on cheap labor cost? A system dynamics approach to FDI policy analysis(Southern New Hampshire University, 2010-06-28) Samii, Massood; Teekasap, PardThis paper studies the interaction of FDI, wages and employment of workers under different policies in countries that use cheap labor cost strategies such as Thailand. The interactions are analyzed by using system dynamics modeling. The model simulation shows that FDI drives salaries up when the demand for workers reaches the limit of the working population. A higher salary, in turn, causes low labor cost seeking FDI to withdraw their investment. Government policies aimed to sustain cheap labor cost seeking FDI are examined. Policies to subsidize foreign operation such as providing tax breaks and reducing the time to set up a new firm can stimulate FDI in the short term but in the long term the foreign firms still withdraw their investments due to high salaries. An increase in the working population or a reduction in firm hiring process time, on the other hand, does not affect the volume of FDI. Thus, the country cannot rely on a low labor cost strategy on the long term.
- ItemEnergy policy and oil prices : system dynamics approach to modeling oil market(Global Commerce Forum, 2010) Samii, Massood; Teekasap, PardThe pattern of global oil demand, real oil price, and world economy in the future is studied through system dynamics modeling. Based on the simulation, the oil demand will drop and then gradually recover while the real oil price will be stable and then drop mimicking a sigmoid curve. The economy will continuously increase. If an economic stimulus policy is implemented, the oil demand is expected to have a shallower drop. Thus, the real oil price is likely to be an S-shaped curve with a higher value, and the economy is expected to grow faster as compared to the case when there is no stimulus policy.
- ItemSystem dynamics approach to the analysis of interaction of foreign direct investment and employment in Thailand(Taiwan Institute of Business Administration, 2010-01) Samii, Massood; Teekasap, PardThis research studies the effect of FDI policy on the wages and employment in Thailand. A system dynamics model that simulates the interaction between labor market and foreign direct investment in Thailand is used. The results show that having an FDI policy results in higher FDI in the short term but lower FDI in the long term. The effect of the policy on unemployment in the short term is not significant but the unemployment ratio is higher than it would be without such policy in the long term. Regarding the salary, having an FDI policy results in having higher average salary in both the short-term and the long term.
- ItemTechnology spillover and productivity growth under R&D consortia policy(Southern New Hampshire University, 2010) Teekasap, Pard; Samii, Massood; Nugent, Nicholas; Fellman, Philip Vos; Dkahar, TejThis present research studies the effect of the R&D consortia policy on the productivity growth and technology spillover through FDI in the Southeast Asia region using a system dynamics approach Thailand, Malaysia, and Vietnam are selected as the representative countries in the Southeast Asia region. The R&D consortia policy has not been implemented in these three countries. However, the effect of the R&D consortia policy on the selected countries is examined through the Japanese case which successfully utilizes the R&D consortia policy. The study shows that Thailand, Malaysia, and Vietnam gain benefits from the R&D consortia policy by having higher productivity. Increase in the country's productivity also improves the average income of the population in that country. By having more income per person, the country can attract more FDI which in turn increases the technology spillover and productivity of the country. Through sensitivity analysis, the country can gain more benefits by shortening the policy implementation duration. However, these benefits are the short-term benefits instead of the long-term benefits. The negative reaction of foreign firms toward the implementation of the R&D consortia policy also shows insignificant effect on the productivity of the country and the GDP per capita although it lowers the level of FDI. The effect of the R&D consortia policy on the improvement of the productivity growth, country's economy, and foreign investment varies due to the economic situation and the risk of the country. The country with mature economy gains more productivity growth but acquires less additional FDI from the policy while the country with a rapidly growing economy receives less benefit in terms of country productivity but acquires more benefits in terms of FDI. The country which is perceived by foreign investors as a high risk country requires a longer period until the effect of the R&D consortia policy on the increase in FDI takes place. (Author abstract)