Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Existing work on China's economic influence in Africa refers to Africa in broad terms, thereby generalizing the results to an extent that is unhelpful for policy-makers in a specific country. Moreover, the emphasis is on oil exporters. This paper remedies this by focusing on a single, oil-importing country: Kenya. The paper examines China's economic presence in Kenya and some of the popular myths surrounding Chinese economic activity. The first myth is that Chinese companies do not employ local workers. In fact, 78 percent of full-time and 95 percent of part-time employees in Chinese companies are locals. Second, although China represents a large potential market for local exporters, the study finds that China has a better chance of expanding its exports to Kenya than Kenya does to China based on existing specializations. This may change with recent oil discoveries in Kenya, increasing the space for Kenyan exports to China, as well as from China's shift to a consumption-driven economy which will increase demand for services, a growing strength of Kenya's economy (World Bank Country Economic Memorandum 2016). The paper emphasizes that Kenyan policy makers should be less concerned about bilateral trade imbalances and worry about Kenya's overall trade balance. However, the Standard Gauge Railway and Thika superhighway experiences suggest that Chinese firms offer relatively few technology transfer or supplier opportunities for local firms and academia. Third, the popular focus of Chinese competition is on the impact on well-organized Kenyan producers and not on consumers, thereby underestimating the benefits Kenyan consumer derive from the availability of more affordable Chinese goods. The paper concludes with policy directions for improving export competitiveness and transparency in infrastructure projects, and local content.

Foreign Aid --- Foreign Direct Investment --- Trade Imbalance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper assesses two research questions: has the presence of foreign firms contributed to productivity increases in Turkey, and how could Turkey increase foreign direct investment inflows? First, the analysis applies dynamic regressions in differences over an AMADEUS firm-level data set. Similar to the results for other emerging countries, Turkish firms that received foreign direct investment will see an increase in productivity after the fourth year. The paper finds evidence of negative but small competition spillovers over domestic firms in the same sector of the multinational, as well as positive and large knowledge spillovers to domestic firms in broader two-digit sectors. This finding constitutes a case for foreign direct investment attraction policies in Turkey. Second, based on the findings of the cross-country regressions, the paper argues that Turkey could increase its attractiveness to foreign investors by strengthening institutional quality, in particular the rule of law, and mitigating exchange rate volatility.

Determinants of FDI --- Foreign Direct Investment --- Knowledge Spillovers

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper documents how economies in the East Asia and Pacific (EAP) region have integrated financially with the rest of the world since the 1990s. First, the region is increasingly more connected with itself and with other economies. Although economies in the North capture the bulk of the region's investments, EAP's connectivity with the South has grown relatively faster. Second, the largest economies in the region (China, Japan, the Republic of Korea, and Singapore) account for most of EAP's cross-border investments. Third, compared with the other South regions, EAP displays a higher level of intraregional and outward investments, reflecting the region's role as a net capital exporter. The differences with South regions are persistent over time. Although EAP lags behind as a destination of foreign investments, inflows to developing EAP economies are comparable to those to other South regions. Fourth, EAP's financial integration is related to its international trade patterns.

Cross-Border Capital Flows --- Foreign Direct Investment --- International Financial Integration --- Portfolio Investments --- Syndicated Loans --- Trade Flows

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

South Asia defies a sluggish world economy and continues its path of gradual acceleration during 2016. Led by a solid India, the region remains a global growth hot spot. While South Asian economies proved resilient vis-A-vis external headwinds such as China's slowdown or uncertainty surrounding monetary policy in advanced economies, some are beginning to feel the sting from slowing remittance flows or waning oil price dividends. Against this backdrop of relative stability but fading tailwinds, India is set to grow at 7.6 percent in 2016, the same speed as in 2015, but may increase its pace again in 2017 to 7.7 percent. The region will remain steadfast in the face of future volatility and is expected to grow at 7.1 percent in 2016, however, its medium term performance strongly hinges on investment and exports. Downside risks are concentrated around political uncertainty as well as fiscal and financial vulnerabilities. While export growth is set to return to positive territory, it will deliver only gradually as global demand picks up. A reality check reveals that private investment - the key future growth driver across South Asia - is yet to be ignited to sustain and further increase the pace of economic activity.

Economic Forecasting --- Economic Growth --- Economic Policy --- Export Competitiveness --- Fiscal Policy --- Foreign Direct Investment --- Investment Climate --- Macroeconomics and Economic Growth --- Trade

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Investments, Foreign (International law) --- Investments, Foreign --- Sustainable development --- Environmental law --- Environmental law, International --- Capital exports --- Capital imports --- FDI (Foreign direct investment) --- Foreign direct investment --- Foreign investment --- Foreign investments --- International investment --- Offshore investments --- Outward investments --- Capital movements --- Investments --- International investment law --- Investment law, International --- International law --- Law and legislation