FDI Micro Database – Methodological Note – Survey 2012 in East Germany
Jutta Günther, Andrea Gauselmann, Björn Jindra, Philipp Marek, Jan Engelhardt
Einzelveröffentlichungen,
2012
Abstract
With the integration of post-communist countries into the European and global economy
after 1990, there was strong research interest into the role of multinational enterprises
(MNEs) for economic restructuring and technological catching-up. Most of the existing
empirical studies on locational determinants of FDI and host country effects did not take
account of East Germany. This might be for different reasons: Firstly, theoretical and
empirical difficulties derive from the fact that East Germany followed a distinct transition
pattern as it became a region subsumed in a larger and more mature economy. Secondly,
East Germany received private investment from foreign as well as West German firms. Only
the first can be considered as a foreign direct investment (FDI). Finally, there had long been
a lack of micro data to adequately analyse the activities of corresponding firms from a
production as well as technological perspective.
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Efficiency in the UK Commercial Property Market: A Long-run Perspective
Steven Devaney, Oliver Holtemöller, R. Schulz
IWH Discussion Papers,
No. 15,
2012
Abstract
Informationally efficient prices are a necessary requirement for optimal resource allocation in the real estate market. Prices are informationally efficient if they reflect buildings’ benefit to marginal buyers, thereby taking account of all available information on future market development. Prices that do not reflect available information may lead to over- or undersupply if developers react to these inefficient prices. In this study, we examine the efficiency of the UK commercial property market and the interaction between prices, construction costs, and new supply. We collated a unique data set covering the years 1920 onwards, which we employ in our study. First, we assess if real estate prices were in accordance with present values, thereby testing for informational efficiency. By comparing prices and estimated present values, we can measure informational inefficiency. Second, we assess if developers reacted correctly to price signals. Development (or the lack thereof) should be triggered by deviations between present values and cost; if prices do not reflect present values, then they should have no impact on development decisions.
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Federal grants for local development to stop economic decline? – Lessons from Germany
Peter Haug, Martin T. W. Rosenfeld
Consequences of the International Crisis for European SMEs – Vulnerability and resilience. Routledge Studies in the European Economy, Routledge,
2012
Abstract
Der Beitrag untersucht - theoretisch und empirisch - die Angebotseffekte der öffentlichen Investitionen, die im Rahmen des im Jahr 2009 gestarteten „Konjunkturpakets II“ (genauer: das darin enthaltene sog. „Zukunftsinvestitionsgesetz“) gefördert wurden. Im theoretischen Teil des Beitrags werden die verzerrenden Effekte von Investitionszuweisungen auf die Bereitstellung von öffentlichen Kapital und die örtliche Wirtschaftsentwicklung behandelt. Entsprechend der theoretischen Literatur zur effizienten Bereitstellung von öffentlichen Gütern, zu öffentlichen Vorleistungsgütern und Wachstum haben zweckgebundene Investitionszuweisungen diverse negative allokative Effekte: Erstens führen sie zu einer Verzerrung der relativen Faktorpreise für die Kommune, was wiederum übermäßig große Bestände an öffentlichem Kapital und eine Pareto-ineffiziente Bereitstellung von öffentlichen Gütern begünstigt. Zweitens können langfristig wachstumsfördernde Wirkungen durch schuldenfinanzierte öffentliche Investitionen nur für öffentliche Vorleistungsgüter erwartet werden, die entweder die Produktivität des privater Unternehmen direkt steigern oder indirekt über eine Steigerung der Faktorproduktivität wirken, vor allem über eine Erhöhung des Bestandes an Humankapital. Im empirischen Teil konnten trotz des jüngsten Anstiegs der kommunalen Investitionen mittels Regressionsanalyse kein Zusammenhang mit den gewährten KPII-Mitteln für Sachsen belegt werden. Weiterhin erwiesen sich die Finanzkraft der sächsischen Kommunen und die Höhe der erhaltenen KPII-Zuweisungen als voneinander unabhängig. Insgesamt können aufgrund der Konzentration der Fördermittel auf öffentliche Konsumgüter anstelle von öffentlichen Vorleistungsgütern nur marginale Wachstumseffekte von den geförderten Investitionen für die Zukunft erwartet werden.
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The Determinants of Inward Foreign Direct Investment in Business Services Across European Regions
Davide Castellani
Finanza e Statistica 104/2012,
2012
Abstract
The paper accounts for the determinants of inward foreign direct investment in business services across the EU-27 regions. Together with the traditional variables considered in the literature (market size, market quality, agglomeration economies, labour cost, technology, human capital), we focus on the role of forward linkages with manufacturing sectors and other service sectors as
attractors of business services FDI at the regional level. This hypothesis is based on the evidence that the growth of business services is mostly due to increasing intermediate demand by other services industries and by manufacturing industries and on the importance of geographical proximity for forward linkages in services.
To our knowledge, there are no studies investigating the role of forward linkages for the location of FDI. This paper aims therefore to fill this gap and add to the FDI literature by providing a picture of the specificities of the determinants of FDI in business services at the regional level. The empirical analysis draws upon the database fDi Markets, from which we selected projects having as a destination NUTS 2 European regions in the sectors of Business services over the period 2003-2008. Data on FDI have been matched with data drawn from the Eurostat Regio
database. Forward linkages have been constructed using the OECD Input/Output database. By estimating a negative binomial model, we find that regions specialised in those (manufacturing) sectors that are high potential users of business services attract more FDI than other regions. This confirms the role of forward linkages for the localisation of business service FDI, particularly in the case of manufacturing.
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Spillover Effects among Financial Institutions: A State-dependent Sensitivity Value-at-Risk Approach
Z. Adams, R. Füss, Reint E. Gropp
Abstract
In this paper, we develop a state-dependent sensitivity value-at-risk (SDSVaR) approach that enables us to quantify the direction, size, and duration of risk spillovers among financial institutions as a function of the state of financial markets (tranquil, normal, and volatile). Within a system of quantile regressions for four sets of major financial institutions (commercial banks, investment banks, hedge funds, and insurance companies) we show that while small during normal times, equivalent shocks lead to considerable spillover effects in volatile market periods. Commercial banks and, especially, hedge funds appear to play a major role in the transmission of shocks to other financial institutions. Using daily data, we can trace out the spillover effects over time in a set of impulse response functions and find that they reach their peak after 10 to 15 days.
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Equity Home Bias and Corporate Disclosure
Stefan Eichler
Journal of International Money and Finance,
No. 5,
2012
Abstract
I show that more comprehensive corporate disclosure reduces investors’ uncertainty about domestic companies’ payoffs at no cost, thereby decreasing investors’ equity home bias toward a country. Since investors should base their investment decisions on valid and easily interpretable company information only, more comprehensive disclosure will reduce the home bias only if domestic securities law is sufficiently stratified and domestic companies use international accounting standards. Using panel data for 38 countries from 2003 to 2008 I find that more comprehensive disclosure reduces investors’ home bias, though significantly only for countries that sufficiently enforce their securities law and implement international accounting standards.
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Veblen's Predator and the Great Crisis
John B. Hall, Iciar Dominguez Lacasa, Jutta Günther
Journal of Economic Issues,
No. 2,
2012
Abstract
With this inquiry we attribute cause for the current and “Great Crisis“ to Veblen's predator. After summarizing origins and manifestations of this crisis we juxtapose Veblen's emphasis upon the predator to other potential causes for crisis and crises. Noted to have emerged when our stock of human knowledge provided for the creation of surplus, Veblen's predator is presented as capable of metamorphosis and also driving evolution of our capitalistic system: whether this means emerging as the businessman in the “era of the machine,“ or the investment banker promoting a financial metaphysics in the current “era of finance.“
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Limited Investor Attention and the Mispricing of American Depositary Receipts
Stefan Eichler
Economics Letters,
No. 3,
2012
Abstract
I test whether more investor attention leads to a better exploitation of arbitrage opportunities and, in turn, to less mispricing of American Depositary Receipts (ADRs). Using data on 536 stocks I find that more investor attention significantly reduces ADR mispricing.
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Board Connections and M&A Transactions
Ye Cai, Merih Sevilir
Journal of Financial Economics,
No. 2,
2012
Abstract
We examine M&A transactions between firms with current board connections and find that acquirers obtain higher announcement returns in transactions with a first-degree connection where the acquirer and the target share a common director. Acquirer returns are also higher in transactions with a second-degree connection where one acquirer director and one target director serve on the same third board. Our results suggest that first-degree connections benefit acquirers with lower takeover premiums while second-degree connections benefit acquirers with greater value creation. Overall, we provide new evidence that board connectedness plays important roles in corporate investments and leads to greater value creation.
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