Trade balances, economic growth and linkages to multinational foreign direct investment to Asia

dc.contributor.authorHassan, Mahboubul
dc.contributor.authorSamii, Massood
dc.date.accessioned2011-03-16T19:09:17Z
dc.date.available2011-03-16T19:09:17Z
dc.date.issued2001
dc.descriptionVersion of Record
dc.description.abstractThis research has investigated whether trade balance is an indicator of foreign direct investments by a multinational corporation. It addresses two principal research questions. First, what are the determinants of foreign direct investment (FDI) in Asia? Second, is trade balance an indicator of FDI? If so, is there any lag effect on FDI for a specific Asian country? Based on annualized time series data for 8 sampled countries in Asia, the results indicate for majority of sampled Asian countries significant statistical correlation exists between the four explanatory variables (GDP growth rate, trade balance, percentage change in real wages, and the average tax rate) and the monetary size of FDI. For majority of sampled Asian countries the coefficient of trade balance is statistically significant, and for only 2 sampled Asian countries, the study indicate significant statistical correlation exists between one period lag monetary size of FDI and the current period FDI. Based on the empirical findings, an MNC, by investing (FDI) in either exportable or import substitutable products of countries that are facing trade balance problems, will be in a stronger position to negotiate better incentives from the host country which in turn will enhance the MNCs value. This research has also shown that an MNC, which is looking for a location of its FDI, will be better off by investing in the sampled Asian countries that are facing trade balance problems and simultaneously are the recipient of FDI.en_US
dc.description.bibliographicCitationHassan, M. & Samii, M. (2001). Trade balances, economic growth and linkages to multinational foreign direct investment to Asia. Presented at Academy of International Business - Northeast Region 2000 Annual Meeting, Ithaca, New York. Retrieved from http://academicarchive.snhu.eduen_US
dc.digSpecsPDF/A-1aen_US
dc.format.extent261715 bytesen_US
dc.format.mediaTypeapplication/pdfen_US
dc.identifier.urihttps://hdl.handle.net/10474/1771
dc.language.isoen_USen_US
dc.publisherSouthern New Hampshire Universityen_US
dc.relation.requiresAdobe Acrobat Readeren_US
dc.rightsAuthors retain all ownership rights. Further reproduction in violation of copyright is prohibiteden_US
dc.titleTrade balances, economic growth and linkages to multinational foreign direct investment to Asiaen_US
dc.typeConference Paperen_US
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