Exporting Financial Institutions Management via Foreign Direct Investment Mergers and Acquisitions
Allen N. Berger, Claudia M. Buch, G. DeLong
Journal of International Money and Finance,
No. 3,
2004
Abstract
We test the relevance of the new trade theory and the traditional theory of comparative advantage for explaining the geographic patterns of international M&As of financial institutions between 1985 and 2000. The data provide statistically significant support for both theories. We also find evidence that the U.S. has idiosyncratic comparative advantages at both exporting and importing financial institutions management.
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Technological capability of foreign and West German investors in East Germany
Jutta Günther
IWH Discussion Papers,
No. 189,
2004
Abstract
Foreign direct investment (FDI) plays an important role for countries or regions in the process of economic catching-up since it is assumed – among other things – that FDI brings in new production technology and knowledge. This paper gives an overview about the development of FDI in East Germany based on official data provided by the Federal Bank of Germany. The investigation also includes a comparison of FDI in East Germany to Central East European countries. But the main focus of the paper is an analysis of the technological capability comparing majority foreign and West German owned firms to majority East German owned firms. It shows that foreign and West German subsidiaries in East Germany are indeed characterized by superior technological capability with respect to all indicators looked at (product innovation, research & development, organizational changes etc.).
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Technology spillovers through foreign direct investment. An empirical investigation on the example of Hungarian industry
Jutta Günther
Schriften des IWH,
No. 14,
2003
Abstract
With the beginning of transition in Central East European countries, foreign direct investment increased strongly whereby foreign subsidiaries transfer modern production technology and management know-how. However, it has remained an open question, how far domestic enterprises also benefit from these developments via technology spillovers. The study points out theoretically possible channels of technology spillovers and empirically investigates the significance, scope and influencing factors of the various spillovers channels on the example of Hungarian industry. The findings show that there are hardly any spillover effects in Hungarian industry so far. Major reasons for that are the strong technological disparities between foreign subsidiaries and domestic firms as well as the lack of labor mobility from foreign to domestic enterprises.
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FDI Subsidiaries and Industrial Integration of Central Europe: Conceptual and Empirical Results
Boris Majcen, Slavo Radosevic, Matija Rojec
IWH Discussion Papers,
No. 177,
2003
Abstract
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Ausländische Direktinvestitionen in der nachholenden wirtschaftlichen Entwicklung Mittelosteuropas
Jutta Günther
Gegen den Strich. Ökonomische Theorie und politische Regulierung.,
2003
Abstract
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New fields of application for the input-output analysis in Germany - Contributions to the Input-Output Workshop 2002 in Halle
IWH-Sonderhefte,
No. 4,
2003
Abstract
Centrepiece of the discussion is the employment-orientated evaluation of large scale Investments. The analysis is based on the static open Input-Output-Model. For both, industrial as well as construction projects, the direct and indirect employment effects at the construction as well as the utilization stage are being estimated and combined with the multiplier effect caused by the created income. Finally, the discussion concludes by evaluating the employment effects of the necessary reconstruction efforts after the flood in summer 2002.
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The Olympic Games raise hopes for regional development policy: Economic effects of the infrastructure investments planned for the Olympic Games in 2012 in Leipzig
Peter Franz, Franz Kronthaler
Wirtschaft im Wandel,
No. 7,
2003
Abstract
Together with the cities of Chemnitz, Dresden, Halle and Riesa the East German city of Leipzig has applied as venue for the Olympic Games 2012. With its application Leipzig competed with four economically by far stronger West German cities (Stuttgart, Frankfurt, Düsseldorf, Hamburg). On April 12, 2003 the National Olympic Committee had to elect the national candidate for 2012 out of this bundle of five applying cities and nominated Leipzig. With the organization of this big event the city of Leipzig and its partner cities expect a strong impulse for regional development. This study tries to estimate the potential economic effects of the planned investment with regard to infrastructure. Important results: Regarding directly the job effects connected with the investment and development of the infrastructure about 3,500 additional jobs are to be expected for a period of ten years. The infrastructure investment planned so far for the Olympiad will contribute only partially to eliminate important infrastructural bottlenecks in the region. Nevertheless the planned infrastructure facilities would have the effect that the new ‘olympia region Leipzig’ would remain attractive also after 2012 as venue for large sport events.
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Vertical and horizontal patterns of intra-industry trade between EU and candidate countries
Hubert Gabrisch
IWH-Sonderhefte,
No. 2,
2003
Abstract
Trade between the European Union (EU) and the Transition Economies (TE) is increasingly characterised by intra-industry trade. The decomposition of intra-industry trade into horizontal and vertical shares reveals predominantly vertical structures with decisively more quality advantages for the EU and less quality advantages for TE countries whenever trade has been liberalised. Empirical research on factors determining this structure in a EU-TE framework lags behind theoretical and empirical research on horizontal and vertical trade in other regions of the world. The main objective of this paper is therefore to contribute to the ongoing debate on EU-TE trade structures by offering an explanation of vertical trade. We utilise a cross-country approach in which relative wage differences, country size and income distribution play a leading role. We find first that relative differences in wages (per capita income) and country size explain intra-industry trade when trade is vertical and completely liberalised, and second that cross-country differences in income distribution play no explanatory role. We conclude that EU firms have been able to increase their product quality and to shift low-quality segments to TE countries. This may suggest a product-quality cycle prevalent in EU-TE trade.
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Regional economic effects of hosting the Olympic Games 2012 in Leipzig and its partner towns - An analysis of infrastructure investments
Peter Franz, Franz Kronthaler
IWH-Sonderhefte,
No. 1,
2003
Abstract
Together with the cities of Chemnitz, Dresden, Halle and Riesa the East German city of Leipzig has applied as venue for the Olympic Games 2012. With its application Leipzig competed with four economically by far stronger West German cities (Stuttgart, Frankfurt, Düsseldorf, Hamburg). On April 12, 2003 the National Olympic Committee had to elect the national candidate for 2012 out of this bundle of five applying cities and nominated Leipzig. With the organization of this big event the city of Leipzig and its partner cities expect a strong impulse for regional development. This study tries to estimate the potential economic effects of the planned investment with regard to infrastructure. Important results: Regarding directly the job effects connected with the investment and development of the infrastructure about 3,500 additional jobs are to be expected for a period of ten years. The infrastructure investment planned so far for the Olympiad will contribute only partially to eliminate important infrastructural bottlenecks in the region. Nevertheless the planned infrastructure facilities would have the effect that the new ‘olympia region Leipzig’ would remain attractive also after 2012 as venue for large sport events.
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Direct investments in Central and Eastern European acceding countries: Repercussions for the German labor market?
Constanze Dey
Wirtschaft im Wandel,
No. 4,
2003
Abstract
In the light of the high unemployment in the Germany we ask whether German FDI to the CEEC is motivated mainly by cost differentials and takes the form of vertical investment which leads to an increased pressure on blue collar jobs in Germany. The analysis shows that German direct investment abroad is motivated both by reasons of market access and by cost differentials. About 60 % of all German FDI is directed toward the service sector. Here, no negative impact on the German labour market is to be expected. About 40 % of total German FDI may partly be motivated by cost advantages and lead to outsourcing. In the three most important CEEC recipient countries (Poland, Czech Republic and Hungary) about half of all FDI is directed toward the manufacturing industries (chemical industry and automobile industry in particular). This supports the hypothesis that vertical investment to these CEECs has been directed towards sectors that display cost advantages (i.e. low labour costs) which results in a decrease of the number of blue collar jobs and their respectives wages.
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