Search

The geographical indication (GI) scheme of the European Union guarantees visibility and protection to high‐quality agri‐food products associated with a demarcated region of origin. This paper estimates the impact of the scheme in attracting agri‐food foreign direct investment (FDI) in European NUTS3 regions, using a novel dataset and a generalized propensity score matching approach. Areas endorsed with GIs attract more FDI in agri‐food‐related activities than their non‐GI counterparts. Positive effects, estimated for FDI inflows, related job creation and inter‐sectoral spillovers on local employment, involves territories with lower institutional quality. [ABSTRACT FROM AUTHOR]

Considering that public debt is a priority for policymakers in Mexico, the aim of this paper is to examine the convergence or divergence in debt per capita and main drivers of debt in the 32 Mexican states in the period 2006–2021. The results support significant spatial correlation of debt/cap across states. Cross‐section and spatial dynamic regressions are used to analyse absolute and conditional beta‐convergence in debt per capita, and the divergence assumption is documented. The panel data models based on the method‐of‐moments quantile models and pooled mean group estimators indicate that poverty is the main determinant of debt, whereas foreign direct investment is insufficient to support the reduction in debt in the long run. These results provide evidence for a set of policy recommendations to ensure a sustainable debt path in Mexico. [ABSTRACT FROM AUTHOR]

Logistics firms play a crucial role in overcoming time and distance constraints in supply chain management. However, little is known about their location patterns. This paper fills the gap by studying the logistics of multi‐national enterprises' location choices across 380 NUTS 3. Using data on 1777 foreign direct investments (FDIs), our findings reveal that forward linkages with a region's retail and wholesale industry exert a stronger impact than intermediate production demand. Results are robust to the inclusion of standard FDIs' determinants and to controls for spatial dependence. Findings suggest that intersectoral demand from downstream sectors positively affect logistics operators independently from the manufacturing base. [ABSTRACT FROM AUTHOR]

This paper studies the joint dynamics of foreign direct investments (FDI) and output growth in European regions by using spatially augmented systems of equations modeling framework that incorporates third‐region and spillover effects. The joint framework is used to study the dynamic impacts of regional human capital endowments, which demonstrates the importance of explicitly accounting for an endogenous relationship. The relationship is highlighted in a stylized projection exercise, where the long‐run impacts are pronounced in Eastern Europe and capital cities. Overall, ignoring the relationship of regional economic performance and FDI distorts the implied transmission mechanism, which is of utmost importance for policy makers. [ABSTRACT FROM AUTHOR]

This study investigates determinants of science and technology parks (STPs) performance in China. We estimate dynamic panel‐data models on a sample comprising 53 STPs for 2008–2018. Foreign direct investment and human capital impact labour productivity and innovation of STPs and explain differences in performance among them. We find evidence for beta‐ and sigma‐convergence of labour productivity and beta‐, but not sigma‐convergence of innovation. Our study provides novel insights for research on STPs and innovation policy regarding heterogeneity in performance of STPs, and specifically, some evidence concerning formation of "clubs" of STPs based on the city‐tier system in China. [ABSTRACT FROM AUTHOR]

Inward foreign direct investment (FDI) has generally been linked to higher wages, but evidence remains sparse on the overall effects of FDI on average wages, the wage gap between skilled and unskilled labour, and inter‐industry heterogeneity. We address these issues for Mexican municipalities and industries for a period of increasing FDI and sectoral change that saw growing wage inequality. By combining two non‐experimental techniques we find that FDI in Mexico was associated with higher wages, mostly for skilled workers—but also for unskilled ones—and a widening gap between them. Effects vary both between and within industries depending on location, and they either wax or wane when the initial or incremental effects are considered. [ABSTRACT FROM AUTHOR]

There is no overall agreement on the relationship between foreign direct investment (FDI) and domestic enterprise, this may reflect different effects from various types of FDI. A panel data regression approach is adopted to examine the impact of knowledge intensive FDI on both new firm formation and the deaths of enterprises. Jobs created by FDI are found to not influence firm births, but influence domestic enterprise through deaths. Renewal knowledge intensive activities reduce firm deaths, but routine or compliance knowledge intensive activities increase the death rate. This means policy seeking to attract FDI must distinguish even within different types of knowledge intensive activities. [ABSTRACT FROM AUTHOR]