国际财务竞争力与激励国外直接投资外文翻译
外文翻译
结核病传染吗
International financial competitiveness and incentives to foreign direct investment
Material Source: Discussion Paper Series 1: Economic Studies No 29/2008
Author: Axel Jochem
Abstract
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. 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.
Keywords:
Competitiveness, foreign direct investment, international
integration
1. Introduction
网页作品International financial integration has become an important factor for economic
performance in the globalisation process. Access to international capital markets is crucial for a country’s ability to meet its financial needs and to keep up with the challenges of a changing global landscape. In this paper, “financial competitiveness” is interpreted as the attractiveness of a country as perceived by foreign investors.A high degree of financial competitiveness should be reflected in favourable refinancing conditions in international capital markets which can be measured by international return differentials for given class of investment as defined in the studies of Curcuru et al 2007 or Gourinchas and Rey 2005. While international returns on debt curities are readily available, equity yields as shown in the balance of payments are less reliable since they are heavily biad by the scope of multinational corporations in the ascertainment of profits.
ipad游戏推荐2. Empirical analysis
2.1 Financial competitiveness
The market value of inward FDI V is calculated according to the method ud by the Bureau of Economic Analysis BEA. Market values of inward FDI stocks are assumed to perform in line with a broad national stock
窜窜market index adjusted for the effects of annual earnings per share.10 Stock market data are bad on the CDAX and the S&P 500 index for Germany and the United States, respectively. For France, Japan and the United Kingdom,the broad national Thompson Financial Datastream index is ud. Exchange rates to convert national currencies into USD are taken from the IMF International Financial Statistics.
The book value of inward FDI stocks F is published in the UNCTAD Foreign Direct Investment databa at current USD prices.11 To calculate the ratio of the market to the book value f, FDI stocks are measured at national level. This is becau this paper concentrates on the overall financial competitiveness of a country and not on individual investment decisions. In principle, however, f can also be calculated at ctor or individual firm level.
2.2 Determinants of financial competitiveness
According to the real option model described in Appendix A, international financial competitiveness as defined in this paper crucially depends on factors that determine the current profit margin, the underlying trend and the discount rate on future earnings. At aggregate level, international price competitiveness and non-price competitiveness are deemed to be important determinants.
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International price competitiveness is usually measured by the real effective exchange rate.It is of special relevance if a significant
percentage of foreign-owned affiliates operate in the tradeables ctor and are expod to international competition.In this ca, real effective depreciation tends to increa the profit margins of domestic firms. Data on real effective exchange rates are provided by the IMF International Financial Statistics. The empirical analysis below us the natural logarithm of the real effective exchange raterer bad on consumer prices.Technological knowledge is often en as an important element of non-price competitiveness. It may reduce competitive pressure in the product market by allowing for product differentiation. Common measures of a country’s innovative spirit are expenditure for rearch and development as a ratio to GDP rad and registered patents of residential firms as a share of total patents pat.Rearch and development R&D activities mirror current efforts to increa technological knowledge. They are published in the OECD Main Science a
nd Technology Indicators MSTI.
Registered patents, bycontrast, are the result of successful rearch in the past. The databa of the United StatesPatent and Trademark Office USPTO is ud to calculate the index.In the macroeconomic context, stable inflation rates are an important indicator of a sound economic environment and a consistent economic policy. In advanced economies, an increa in inflation rates dinfl usually entails a restrictive monetary policy and an increa in real interest rates.
有恃无恐啥意思2.3 Financial competitiveness and incentives to invest
A high prent value of expected earnings relative to the initial investment sum should generally indicate an incentive to invest. In this paper, a distinction is made between two types of uncertainty. On the one hand, the investor bears the risk of changing economic prospects, which rais a barrier to engaging in a new project.
与世长辞On the other hand, foreign direct investment is often associated with a first-moveradvantage that consists of exclusive access to technological knowledge or economies of scale. This phenomenon reduces the net option value of waiting and should have a stimulating effect on the investment decision.
In the following, uncertainty of future earnings is measured by the conditional variance of a broad national stock index vol. The respective time ries are produced on the basis of daily percentage changes in the stock indices that were also ud to calculate f.
3. Conclusion
火树银花合The paper has introduced an index of international financial competitiveness that is bad on the market-to-book value of inward FDI stocks. Financial competitiveness as defined here reflects the attractiveness of a country for foreign investors with long-term strategic interests. It provides information not only on a country’s prospects as a business location, but also on its access to global capital
