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A decade has passed since Robert Lucas asked why capital does not flow from rich to poor countries. Lucas used a contemporary example to illustrate his Paradox, the very modest flow of capital from the United States to India during the second great global capital market boom, after 1970. Had he paid more attention to the first great global capital...
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... after 1894 more than they had previously? Figure 1 suggests that the international capital market was simply deeper than it had been before. 13 Transoceanic trade awoke from post-Boer War depression, the Russo-Japanese war stimulated borrowing, the Canadian and Argentine railways expanded, and British capital spread to a wider area than ever before-including major movements to Brazil, Mexico, Chile, Egypt, South Africa, regressors. ...
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Foreign investment fund in the world has multiplied several times in the last twodecades. However, growing trend of foreign investments fl ow has been broken by the recentfi nancial crisis in the world. Lower infl ow of foreign investments into the developingcountries has made the funding of their current accounts diffi cult, because it becamemore...
Citations
... Social capital brings positive effects to productivity and exports, inducing innovations, technological progress, entrepreneurship, reducing transactional costs, and asymmetries in information (H4) (Akçomak & ter Weel, 2009;Coleman, 1988;Putnam, 1993). On the other hand, the social capital deficit can hamper FDI inflow, if limitations in such immobile factors as schooling, agglomerations, and intermediate inputs exist (Clemens & Williamson, 2000;Putnam, 1995). Finally, regional spillovers depend on absorptive capacity, which determines the possible gains in productivity. ...
Limited export potential can impede growth prospects. While core regions serve as hubs of globalization, the question remains as to how rural regions can increase their exports. By identifying the factors that enhance the export competitiveness of rural regions, particularly in comparison to urban regions, we can steer them towards sustainable development and overcome constraints related to remoteness. However, there is no simple or shortcut way of increasing exports in rural regions. It still requires long-term investments, improvements in human capital, inflows of foreign-owned entities, and advantageous operations of special economic zones. Social capital has a positive impact on exports at the regional level, but its effect could not be acknowledged in the subsets of regions. What should rural regions prioritise? Investing in human capital and promoting non-agricultural economic activities that have a greater impact on rural exports than urban ones.
... 5. Born global companies are characterized by an ability to overcome the initial barriers that are associated with entry into foreign markets without first establishing a strong home market presence (Hennart, 2014;Rennie, 1993 (Coatsworth & Williamson, 2004). On Argentine tariffs see also Alejandro (1967Alejandro ( , 1970, Thompson (1929), Clemens and Williamson (2001), and Coatsworth and Williamson (2002). 16. ...
Standard accounts of the concept of ‘modern brand’ consider it to have developed in the late nineteenth century with the second industrial revolution and to have a range of unique characteristics, including a personality of its own and to be protected by law. Modern brands are considered to have succeeded proto brands, which relied essentially on quality and origin for differentiation. To trace this path, standard accounts build strong links between law, brand identity and product differentiation, suggesting that law and brand are ‘symbiotic’. Looking at a country with early, yet relatively weak, trademark law and a poorly structured registration system and focusing on the previously little analysed case of the Brazilian South American Tea industry during the period 1875-1913, it suggests that we need to consider two other types in the evolution of brands: ‘proto legal brands’ and ‘differentiated proto brands’. So doing, this account provides an innovative view of legislation and registration, and their problematic contribution to anti-competitive protectionism.
... FDI decisions are made depending on many economic factors. Clemens and Williamson (2000) examine which countries and motives the British capital go as FDI. They conclude that the British capital goes abroad to natural resources, educated populations, immigrants, and young populations. ...
... They conclude that the British capital goes abroad to natural resources, educated populations, immigrants, and young populations. Clemens and Williamson's (2000)'s paper suggests that immigrant flows have a vital role in the FDI. Factors such as institutional quality, deepened financial system, and the importance of law have vital effects on international capital flows. ...
This paper aims to investigate the impact of immigration on FDI between Turkey and OECD countries. The paper uses data spanning the period 2003-2019. There is employed PPML estimation method which presented efficient output in the presence of heteroskedasticity and non-large zero values of inward FDI in Panel Gravity Model. However, outward FDI is estimated using the ZINB model for outward FDI data has overdispersion and excess zero flows. The results show that immigrant flows to OECD from Turkey on the FDI flows are relatively more effective than the immigrant flows to Turkey from OECD.
... , I add prices variable to check my results.24 See more on this inClemens and Williamson (2000).25 Spain was engaged in the following armed conflicts: Third Carlist War(1872-1876), Ten Years' War (1868-1878), Little War (Cuba) (1879-1880), Cuban War of Independence (1895-1898), Spanish-American War (1898), Philippine Revolution (1896-1898), Margallo War (1893-1894), Melilla War ...
... For example, one could argue that population variable is not exogenous because it depends on FDI, i.e., richer countries attract larger numbers of migrants and, therefore, these countries have higher FDI. Studies have found that FDI and migration often move in the same direction (e.g., Lucas, 1990;Clemens and Williamson, 2000;Groznik, 2003), however, several of these papers consider correlation rather than causality. Kim (2006), for example, investigated the link between migration, trade and FDI for the United States and concluded that FDI and trade are substitutes, but both are led by migration, suggesting that migration was an exogenous variable. ...
A useful and complementary approach to understand what drives corporate leaders to choose certain corporate governance practices is to look beyond the individual traits and characteristics of the leader, examining the effect of the elements of the institutional environment on managerial decisions. Drawing on the contextual approach to leadership and insights from institutional theory, this study examines the impact of government integrity, as an omnibus contextual factor of leadership, on corporate governance practices. Specifically, from the field study, we find that government integrity has a positive causal effect on corporate leaders' accountability to shareholders and the board of directors. We also find the same positive effect of government integrity on auditing and reporting reports and on the protection of minority interests. The positive impact of government integrity on corporate leaders' actions is also confirmed using a laboratory study. In the controlled laboratory environment, we show that a social norm of promoting leadership integrity, deriving from the broad context, positively impacts on corporate responsibility especially in contexts where the government lacks credibility. Specifically, we find that corruption and bribery by corporate leaders is low in contexts that are transparent and high in contexts with low government integrity. These findings have important implications for policymakers, practitioners as well as for shareholders.
... Bergstrand and Egger (2007) and Head and Ries (2008) develop the leading theoretical models that provide theoretical micro-foundations for adopting gravity equations for the analysis of FDI. Clemens and Williamson (2000) find that, historically, British foreign capital that flowed into countries also attracted a large number of migrants. In the same line, Barry (2002) uses aggregated data to show that migration has an impact on inflows of FDI, while Gao (2003) ...
We explore the relationship between human migration and OECD’s foreign direct investment (FDI) using a gravity equation enriched with variables that account for complex-network effects. Based on a panel data analysis, we find a strong positive correlation between the migration network and the FDI network, which can be mostly explained by countries’ economic/demographic sizes and geographical distance. We highlight the existence of a stronger positive FDI relationship in pairs of countries that are more central in the migration network. Both intensive and extensive forms of centrality are FDI enhancing. Illuminating this result, we show that bilateral FDI between any two countries is further affected positively by the complex web of ‘third party’ corridors/migration stocks of the international migration network (IMN). Our findings are consistent whether we consider bilateral FDI and bilateral migration figures, or we focus on the outward FDI and the respective inward migration of the OECD countries.
... Una segunda lectura ha permitido discutir sobre aspectos importantes de la segunda globalización: los procesos de integración comercial y de "desintegración vertical" de la producción en las últimas décadas del siglo XX, su impacto sobre los salarios de los trabajadores poco cualificados en las economías occidentales y, finalmente, las respuestas de política económica ante dicha situación (Feenstra 1998). En relación al mercado de capitales, los alumnos han leído un capítulo de carácter descriptivo (James 2014) que complementa lo explicado en clase y la última lectura se ha centrado en analizar la llamada paradoja de Lucas y sus determinantes para el siglo XIX, es decir, la observación de que los flujos de capital desde el mundo desarrollado a los países pobres son relativamente modestos (Clemens y Williamson 2000). ...
El mundo actual es un mundo globalizado. Esta comunicación presenta el caso
de una asignatura de máster dedicada a la globalización económica en
perspectiva histórica. Explica los diversos ámbitos que componen el proceso de
planificación y la práctica docente de dicha asignatura, desde el establecimiento
de los objetivos hasta su evaluación, pasando por los contenidos y los materiales
utilizados. Por todo ello, esta comunicación puede ser útil para aquellos
docentes interesados en introducir contenidos sobre el proceso de globalización,
una realidad del pasado y del presente
Today the World is a global World. This paper presents a master course on
economic globalization with an historical perspective. It explains all the
elements of the planning and teaching process: objectives, evaluation, contents
and materials. Therefore, this paper can be useful to all professors interested in
topics related with both the historical and current globalization processes.
... Early studies by Zevin (1992), Neal (1985Neal ( , 1990, and Obstfeld (1995) show that historical periods in 18th century, the 1890s, and the 1980s are quite similar with respect to the degree of capital markets integration. A study of historical British capital flows by Clemens and Williamson (2000) claims that both prior World War I and recently integration of capital markets is sufficient to eliminate the influence of international market failures on capital flows. In their comprehensive studies Obstfeld and Taylor (1998, 2002a investigate empirically the pattern of capital flows over a long period since the 1870s till now and provide evidence of a U-shaped trend line in global capital mobility. ...
Using long time series for sovereign bond markets of fifteen industrialized economies from 1875 to 2009, I find that financial market integration by the end of the 20th century was higher than in earlier periods and exhibited a J-shaped trend with a trough in the 1920s. The main reason for the higher financial integration seen today is the recent extensive globalization. Around the turn of the 20th century, countries frequently drifted apart. Conversely, in recent years, the bond markets of most countries have moved together. Both policy variables and the global market environment play a role in explaining the time variation in integration, while “unexplained” changes in the overall level of country risk are also empirically important. My methodology, based on principal components analysis, is immune to outliers and accounts for global and country-specific shocks and, hence, can capture trends in financial integration more accurately than standard techniques such as simple correlations.
... It seems quite plausible that these factors also increased the risk of foreign investment in less developed countries. Faria, Mauro, Minnoni and Zaklan (2006) emphasize the importance of human capital and institutional quality, while Clemens and Williamson (2000) point to the importance of schooling, natural resources and demography. However, most of these variables either are time invariant or they change very gradually, which makes it difficult to view them as causes of sudden capital reversals. ...
As a result of the War of the Pacific (1879–1883), Chile conquered Peruvian and Bolivian territories rich in nitrates and guano. We conduct econometric tests for structural breaks in the time series of the government bonds for Chile and Peru between 1876 and 1890 in order to examine the effects of the changes in resource endowments on the investors’ perceptions of the risk premia of Chilean and Peruvian securities. Our results reveal that investors were extremely pessimistic about the prospects of Chilean, and especially Peruvian debt prior to the war. Early Chilean victories that anticipated the transfer of the richly endowed provinces to Chile caused significant increases in the price of Chilean securities. But such was the low regard with which investors viewed the Peruvian government that the fall of Lima caused an increase in the price of Peruvian bonds on the hope that Chile would assume some of the responsibility for them. Endowments, reputations, and the countries’ financial conditions figure prominently as the driving forces behind the investors’ behavior.
... 18 Indeed, the labor-scarce New World countries, where only a tenth of the world's population lived, received two-thirds of the British capital in 1913-14, while labor-abundant Asia and Africa, accounting for two-thirds of the world's population, only received a quarter of European foreign investment (Clemens and Williamson 2000). ...
