nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2008‒06‒13
three papers chosen by
Iulia Igescu
Global Insight, GmbH

  1. Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America By Nauro Campos; Yuko Kinoshita
  2. Further Theoretical and Empirical Evidence on Money to Growth Relation By Alexandru Minea; Christophe Rault; Patrick Villieu
  3. Does Growth & Quality of Capital Markets drive Foreign Capital? The case of Cross-border Mergers & Acquisitions from leading Emerging Economies By Juan Piñeiro Chousa,; Krishna Chaitanya,; Artur Tamazian

  1. By: Nauro Campos; Yuko Kinoshita
    Abstract: This paper investigates the role of structural reforms – privatization, financial reform and trade liberalization– as determinants of FDI inflows based on newly constructed dataset on structural reforms for 19 Latin American and 25 Eastern European countries between 1989 and 2004. Our main finding is a strong empirical relationship from reforms to FDI, in particular, from financial liberalization and privatization. These results are robust to different measures of reforms, split samples, and potential endogeneity and omitted variables biases.
    Keywords: privatization, financial reform, trade liberalization, foreign direct investment, Latin America, transition economies
    JEL: H11 F21 O16
    Date: 2008–01–01
  2. By: Alexandru Minea; Christophe Rault; Patrick Villieu
    Abstract: This paper proposes a theoretical growth model where seigniorage can be used to finance productive public spending, and show the existence of nonlinear effects between seigniorage and economic growth. Empirical evidence based on panel regression techniques provides some support for these nonlinear effects on a sample of OECD countries over the 1978-2005 period.
    Keywords: economic growth, nonlinear effects of monetary policy
    JEL: E52 E62 H54
    Date: 2008–02–01
  3. By: Juan Piñeiro Chousa,; Krishna Chaitanya,; Artur Tamazian
    Abstract: Is there any interrelationship between firm level FDI in the form of cross border Mergers & Acquisitions and capital markets growth and quality? We addressed this question using panel data of cross border M&A for nine emerging economies. Our study period goes from 1987 to 2006. We find that the stock market variables, viz., capitalization and value addition encourage the number of deals and value of cross border Mergers & Acquisitions. However, the association with regulatory and financial reforms is much stronger and robust.
    Keywords: Financial Markets, Cross border M&A & Emerging Economies.
    JEL: E44 O53 O54 O55
    Date: 2008–02–01

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