International Investment Patterns. Philip R. Lane WBI Seminar, Paris, April 2006

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "International Investment Patterns. Philip R. Lane WBI Seminar, Paris, April 2006"

Transcription

1 International Investment Patterns Philip R. Lane WBI Seminar, Paris, April 2006

2 Introduction What determines aggregate capital inflows and outflows? What determines bilateral patterns in international investment? Role of Institutions and Policies Lessons from recent literature Case study: China and India Case study: Central and Eastern Europe (CEE) Challenges for macroeconomic policy; the adjustment process

3 Level of International Financial Integration Increasing in income per capita Increasing in trade openness - complementarity Increasing in domestic financial development Increasing in external account liberalization

4 Panel Analysis of financial integration, (Dep. Var.: change in financial integration) (1) (2) (3) (4) (5) External Liberalization (3.69)*** (.5) (.36) (.5) (.2) Trade openness (3.62)*** (4.88)*** (3.37)*** (4.58)*** Log GDP per capita (2.74)*** (3.65)*** (5.06)*** Stock market capitalization (18.3)*** (17.4)*** Adjusted R Number of obs

5 Net Creditors versus Net Debtors Level of income per capita Demographic factors Level of public debt

6 Institutions Good institutions lead to: Greater financial integration Greater ability to attract capital inflows Improved quality of inflows more portfolio equity, more FDI, more bonds Improved quality of outflows less capital flight; lower need to hold reserves Lower spreads Institutional mix: general versus financial

7 Bilateral Investment Patterns What explains why country A invests in country B? Country A s propensity to invest overseas Country B s general attractiveness as a destination Bilateral linkages between A and B Important for investor base Important for transmission of shocks Important for risk analysis Important for asset pricing and return comovements

8 Bilateral Linkages Optimal diversification has a bilateral dimension Trade risk GDP / return risk Information frictions Gravity variables (Distance, Language, Colonial Ties ) Also Trade volume Bilateral trading costs Bilateral exchange rate stability, language, common institutional framework etc

9 Main Findings Asset holdings significantly correlated with trade linkages Distance also matters (more so for FDI, banks than portfolio flows) Institutional similarity Asset holdings less influenced by return hedging factors Strong impact of currency union (EMU) on equity; portfolio debt More generally, regional policies matter

10 The International Financial Integration of China and India

11 Introduction Goal: quantitative profile of the IFI of China and India Current situation; future evolution Volume-based approach: EWN II; CPIS; BIS; national sources Net positions Gross holdings of foreign assets and liabilities External capital structure Geographical distribution Currency composition

12 Outline The International Balance Sheets of China and India: A Profile The Future Evolution of Capital Flows Macroeconomic Policy and International Financial Integration Conclusions

13 Net Foreign Asset Positions 10 China India

14 XS of NFA Positions 100 NAM BW A SAU 50 YEM NFA to GDP TZA IRN DZA MUS SW Z VEN TKM CHN RUS MYS KOR IND BIH ZAF GTM BFA ALB NPL EGY UKR BLR SVN UZB MAR JOR ISR PRY URY KEN BGD THA SEN PAK MKD COLROM LTUSVK CZE NGA CMR CHL KHM TJK ARM GABTUR MEX BGR HND IDN BRA CRI ARG SYR LVA POL MLI UGA LKA PER MDA VNM PHL DOM ETH SLV KAZ HRV MOZ RWA JAM TTO CIV GEO KGZGIN PNG ECU MDG TGO GHA PAN SDNAGOBOL HUN TCD NIC AZE LBN TUN ZMB EST LAO GDP per capita, PPP

15 World s Largest Creditors and Debtors Country NFA/GDPW NFA/GDPW Japan 4.34 India Switzerland 1.25 Argentina Taiwan 1.06 New Zealand Hong Kong 1.05 Hungary United Arab Emirates 0.54 Portugal Germany 0.54 Indonesia Singapore 0.46 Canada Norway 0.40 Poland Saudi Arabia 0.39 Turkey China 0.32 Greece Kuwait 0.31 United Kingdom France 0.27 Mexico Belgium 0.27 Brazil Libya 0.16 Italy Qatar 0.15 Australia Iran, Islamic Republic o 0.12 Spain Luxembourg 0.09 United States -6.49

16 IFI/GDP China India

17 XS of IFI/GDP 400 LBN 350 PAN 300 URY EST 250 IFI to GDP TZA SYR AZE JAM MYS ARG NAM ISR CHL JOR HRV LVA KGZAGO KHM HND HUN CIVTGOLAOGHA PNG BOL KAZ BGR NIC VEN CZE ZMB TUN ETH BIH SVK MDG RWA SVN MDA SWZ NGA MOZ TTO YEM EGY UGA SDN MAR PHL TCD SLV BWA RUSZAF MLI SEN GIN MKD THA POL VNM GEO ECU PER DOM SAU ARM CHNUKR LTU KOR NPL UZB IDNLKA COL PRY TUR BRA DZA ROM GAB CRIMUS TJK MEX PAK KEN CMR BFA GTM ALB IND TKM BGD IRN BLR GDP per capita, PPP

18 XS: Foreign Assets / GDP JOR SEN URY Foreign assets to GDP SW Z PAN LAO AGO EGY SAU VEN ARGLBN SVK ISR SDN CHL JAM MKD BGD MDA EST HRV HND KGZ UZB SYR ARM VNM LTU CZE TJK GEO ZAF MLI MUS ID N MOZ BEN GIN KAZ SGP BGR TKM NGA RW TZAA GAB DZAZMB PAK SVNCYP LVA PRY TTO MAR MYS TUN BOL SLV CHN COL UKR HUN DOM NIC PER KEN MDG PNG POL BIH TUR BRA THA HKGIN D KHM GTM BLR TGO BFA KORNPL ETH CIVUGA MEX CRI RUS NAM BW GHAA ALB ECU YEM CMR AZE IR N GDP per capita, PPP

19 XS: Official Reserves / GDP 60 JOR AGO LAO VNM 50 ISR EGY Reserves 40 TJK KGZ CZE MUS 30 MKD SGP ID N HND MLI LTU UZB HRV KAZ CYP TTO MOZ MYS CHN IR N SW Z SAU JAM GEOPOLURY MDA 20 BEN MAR TUN UKR BGD SVN RW BGRA GAB HKG SYR MDG BLRPER NGA SVK COG GIN TZA ZMB THA PNGPRY VEN CHL HUN LVA NIC IN D PAK TKM EST BIH UGA SDN TGO ARM GTM SLV COL KEN NPL KHM TUR ARG LBN 10 CIV CRI KOR BOL ALB BRA MEX RUS NAM DZA SEN BFA YEMBW ETH CMR A ZAF PAN TCD GHA ECU DOM AZE GDP per capita, PPP

20 Global Distribution of Official Reserves Share in Global Country Reserves Japan China Taiwan 5.91 Euro Area 5.41 Korea 5.13 India 3.26 Hong Kong 3.19 Russia 3.11 Singapore 2.89 United States 1.96 Malaysia 1.71 Mexico 1.65 Switzerland 1.43 Brazil 1.36 Thailand 1.25

21 Share in Global Equity Liabilities FDI Liab Share China FDI Liab Share India Port Eq Liab Share Chin Port Eq Liab Share India

22 Share in Global Debt Liabilities Debt Liab China Debt Liab India

23 China: Net Equity and Net Debt China NETEQ China NETDE

24 India: Net Equity and Net Debt India NET India NET

25 Debt Shares in Foreign Assets and Liabilities China D_SH_A China D_SH_L India D_SH_A India D_SH_L

26 FDI Share in Foreign Equity Assets and Liabilities China FDI_EQ_FA China FDI_EQ_FL India FDI_EQ_FA India FDI_EQ_FL

27 China s FDI Liabilities Share World 100 Hong Kong SAR 45 United States 8.9 Japan 8.7 Taiwan POC 7.4 British Virgin Islands 6.9 Korea 4.8 Singapore 4.8 United Kingdom 2.3 Germany 1.8 France 1.3 Other 8.2

28 India s FDI liabilities Share Mauritius 35.6 United States 16.5 Japan 6.9 Netherlands 6.9 UK 6.6 Germany 4.4 Singapore 3.1 France 2.7 Korea 2.2 Switzerland 2 Other 13.2 Total 100

29 Sources of Portfolio Investment China India Equity Debt Equity Debt World World United States United States EU EU Japan Japan Singapore Singapore Hong Kong SAR Mauritius ROW ROW

30 Pattterns in BIS Banking Data China India Inward Outward Inward Outward Europe UK Japan US Hong Kong SAR Total

31 China: Bilateral Regressions FDI Portfolio Portfolio Bank Equity Debt Liabilities Size (7.0)*** (3.68)*** (2.31)** (.54) Trade (2.59)** (.62) (1.96)* (1.88)* Distance (1.93)* (1.04) (4.69)** (.47) ERVOL (.17) (4.3)*** (6.94)*** (.78) Adj R N

32 India: Bilateral Regressions FDI Portfolio Portfolio Bank Equity Debt Liabilities Size (6.22)*** (3.0)*** (.37) (.48) Trade (2.7)** (1.7) (1.01) (.15) Distance (1.15) (1.05) (.18) (.33) ERVOL (.61) (3.27)*** (.32) (.51) Adj R N

33 Currency Composition of Debt Liabilities China India Dollar Euro Yen Sterling Swiss Franc

34 The Future Evolution of Capital Flows Depends on domestic financial reforms Depends on world market conditions NFA Level of IFI External Capital Structure Bilateral Patterns Currency Composition

35 China and India: Projected GDP relative to G-7 China India

36 Macroeconomic Policy Exchange Rate Regime Banking Reform Transformation of reserves Increase in macroeconomic volatility Valuation Channel

37 Capital flows to Emerging Europe

38 Objective Put trends in external capital flows and their composition in perspective (compare CEE with EU15, other emerging mkts) Provide simple calculations on sustainable future capital flows Draw implications for future trade surpluses

39 Road map Capital flows and external position: stylized facts ( ) Bilateral exposure Implications for medium-term factor flows

40 Capital flows Large! Initial liabilities very small (except Bul, Hun, Pol) Strong growth prospects Obsolete capital

41 External liabilities in 1994 were small Swaziland Net external position in 1994 (percent of GDP) NFA/GDP Latvia Slovak Republic Romania Namibia Paraguay Lithuania Estonia Russia Mauritius Iran Lebanon Colombia South Africa Guatemala El Salvador Macedonia Brazil Kazakhstan Fiji Poland Turkey Costa Rica Chile Bulgaria Egypt Thailand Morocco Jamaica Dominican Rep. Algeria Peru MalaysiaHungary Panama Czech Republic Venezuela, Rep. Bol. Uruguay Mexico Slovenia Argentina -80 Ecuador Jordan -100 Trinidad and Tobago Syria Tunisia Gabon GDP per capita

42 ...but MUCH larger at end Iran Algeria Mauritius Venezuela, Rep. Bol. Net external position (pct of GDP), Russia Malaysia Oman NFA/GDP South Africa Albania Guatemala Belarus Egypt Jordan Uruguay Paraguay Thailand Macedonia Romania Slovak Republic Czech Republic Colombia Lithuania Chile Turkey Gabon Mexico Bulgaria Costa Rica Brazil Peru Latvia Poland Kazakhstan Dominican Republic El Salvador Croatia Jamaica Argentina Trinidad and Tobago Slovenia Portugal Ecuador Tunisia Panama Lebanon Hungary Estonia GDP per capita

43 International financial integration is increasing EU Other emerging markets 100 CEE countries

44 ...with equity liabilities playing a more important role CEE countries Other em. mkts EU

45 ...and particularly so FDI CEE countries 35 Other em. mkts EU

46 50 40 CEE countries FX share Equity share Reserves play an important role among external assets, more so than elsewhere EU 15 Equity share FX share Other emerging and developing economies FX share Equity share

47 In most CEE countries net equity liabilities are larger than net debt 30 Czech Republic net debt (pct of GDP) Slovak Republic Bulgaria Romania Slovenia Estonia Lithuania -10 Poland Latvia -20 Hungary Croatia net equity (pct of GDP)

48 Returns on external liabilities Returns on FDI are linked to economic performance (high when the economy does well, low otherwise) This implies better risk-sharing relative to foreign-currency debt......and can help productivity growth......but the price is a higher cost

49 Financial integration with the EU is particularly strong Sources of FDI (2002) EMU UK US DEN SWE SWI. CEEC Bulgaria Croatia Czech Republic Estonia Hungary Latvia Lithuania Poland Romania Slovakia Slovenia

50 Implications for future flows External liabilities cannot grow faster than GDP forever... Sustainable flows imply a stable ratio of net external liabilities to GDP... For example, with 8% nominal growth and liabilities of 50% of GDP, the CA balance would be -4% SS ca ( g +π ) NFA t t SS

51 Does this imply that large capital inflows can persist without any adjustment? Not quite. As liabilities accumulate, investment income payments to foreigners increase To keep the CA from deteriorating, the trade balance (broadly defined) must improve......because servicing external debt and FDI is costly

52 ...and the improvement must be large... Trade balance (average ) NFAstabilizing trade balance Implied current account balance (baseline) Bulgaria Czech Republic Slovak Republic Estonia Latvia Hungary Lithuania Poland

53 What can countries do? Strengthen export growth (and hope for recovery in the euro area!) Contain budget deficits (that contribute to widening current account imbalances) Be prepared for leaner times on global capital markets

54 Upside and downside risks Credible policies and integration with EU can lower spreads, implying more favorable debt dynamics... But there is limited scope for exchange rate correction to ease the trade balance adjustment, at least with current exchange rate regimes

Bringing Up Incentives: A Look at the Determinants of Poverty. Alice Sheehan

Bringing Up Incentives: A Look at the Determinants of Poverty. Alice Sheehan Bringing Up Incentives: A Look at the Determinants of Poverty Alice Sheehan Outline presentation What s going on out there? Growth, Human Development indicators, Poverty rates, etc. A look at determinants

More information

The new gold standard? Empirically situating the TPP in the investment treaty universe

The new gold standard? Empirically situating the TPP in the investment treaty universe Graduate Institute of International and Development Studies Center for Trade and Economic Integration Working Paper Series Working Paper N IHEIDCTEI2015-08 The new gold standard? Empirically situating

More information

Figure 1.1 The Parade of World Income. Copyright 2005 Pearson Addison-Wesley. All rights reserved. 1-1

Figure 1.1 The Parade of World Income. Copyright 2005 Pearson Addison-Wesley. All rights reserved. 1-1 Figure 1.1 The Parade of World Income Copyright 2005 Pearson Addison-Wesley. All rights reserved. 1-1 Copyright 2005 Pearson Addison-Wesley. All rights reserved. 1-2 Growth and Development: The Questions

More information

A new metrics for the Economic Complexity of countries and products

A new metrics for the Economic Complexity of countries and products A new metrics for the Economic Complexity of countries and products Andrea Tacchella Dept. of Physics, La Sapienza - University of Rome Istituto dei Sistemi Complessi, CNR Roma CRISISLAB ANALYTICS FOR

More information

Natural Resources and Development in the Middle East and North Africa: An Alternative Perspective

Natural Resources and Development in the Middle East and North Africa: An Alternative Perspective Natural Resources and Development in the Middle East and North Africa: An Alternative Perspective Daniel Lederman and Mustapha K. Nabli The World Bank Presentation at the Workshop on Natural Resources

More information

Addressing institutional issues in the Poverty Reduction Strategy Paper process

Addressing institutional issues in the Poverty Reduction Strategy Paper process SESSION 1 Addressing institutional issues in the Poverty Reduction Strategy Paper process Scoping notes, detailed diagnostics, and participatory processes Public Sector Reform and Capacity Building Unit

More information

Infrastructure and Economic. Norman V. Loayza, World ldbank Rei Odawara, World Bank

Infrastructure and Economic. Norman V. Loayza, World ldbank Rei Odawara, World Bank Infrastructure and Economic Growth thin Egypt Norman V. Loayza, World ldbank Rei Odawara, World Bank Motivation Questions How does Egypt compare internationally regarding public infrastructure? Is Egypt

More information

Economic Complexity and the Wealth of Nations

Economic Complexity and the Wealth of Nations Economic Complexity and the Wealth of Nations Cesar A. Hidalgo ABC Career Development Professor MIT Media Lab Faculty Associate, Center for International Development Harvard University EARTH WIND WATER

More information

Financial services and economic development

Financial services and economic development GDP per capita growth 03/11/2014 Financial services and economic development Thorsten Beck Finance why do we care? 0.04 BWA 0.02 0.00-0.02 COG SLE ALB GAB IND KOR TUR SGP MUS SDN MOZ IRLLUX IDN MAR EGY

More information

Today s tips for the Country Buy Report

Today s tips for the Country Buy Report High level outline Today s tips for the Country Buy Report Stephen Malpezzi Introduction Overview of the country and economy Basic indicators (GDP, employment, etc.) Key institutions, the setting How does

More information

THE QUALITY OF GOVERNMENT CA FOSCARI INTERNATIONAL LECTURE

THE QUALITY OF GOVERNMENT CA FOSCARI INTERNATIONAL LECTURE THE QUALITY OF GOVERNMENT CA FOSCARI INTERNATIONAL LECTURE Andrei Shleifer December 12, 2012 1 Richer countries almost always have better governments Less corrupt More efficient Quality of government improves

More information

Ken Jackson. January 31st, 2013

Ken Jackson. January 31st, 2013 Wilfrid Laurier University January 31st, 2013 Recap of the technology models Do the models match historical data? growth accounting Estimating technology change through history A revised model of technology

More information

Does Absolute Latitude Explain Underdevelopment?

Does Absolute Latitude Explain Underdevelopment? AREC 345: Global Poverty and Economic Development Lecture 4 Professor: Pamela Jakiela Department of Agricultural and Resource Economics University of Maryland, College Park Does Absolute Latitude Explain

More information

The Fall of the Final Mercantilism

The Fall of the Final Mercantilism The Fall of the Final Mercantilism Labour Mobility in the Caribbean and the World, from Arthur Lewis to the 21 st Century Eastern Caribbean Central Bank Michael Clemens November 3, 2010 1 2 Migration

More information

Building Capacity in PFM

Building Capacity in PFM Building Capacity in PFM Measuring economic governance in the context of national development planning LAMIA MOUBAYED BISSAT Beirut, Lebanon, 13 June 2014 The Institut des Finances Basil Fuleihan 1996

More information

Economic Growth: the role of institutions

Economic Growth: the role of institutions ECON 184 Economic Growth: the role of institutions ECON 184: Institutions and Growth January 26, 2010 1 Contents 1 Institutions and growth: initial analysis 3 2 How can institutions affect economic growth?

More information

China: How to maintain balanced growth? Ricardo Hausmann Kennedy School of Government Harvard University

China: How to maintain balanced growth? Ricardo Hausmann Kennedy School of Government Harvard University China: How to maintain balanced growth? Ricardo Hausmann Kennedy School of Government Harvard University China s growth process An unprecedented miracle China has been the fastest growing country in the

More information

Deep Roots of Comparative Development

Deep Roots of Comparative Development Deep Roots of Comparative Development Oded Galor AEA Continuing Education Program Lecture III - AEA 2014 Oded Galor Roots of Comparative Development Lecture III - AEA 2014 1 / 41 Deep Roots of Comparative

More information

Industrial Policy, Capabilities, and Growth: Where does the Future of Singapore lie? Jesus Felipe Asian Development Bank

Industrial Policy, Capabilities, and Growth: Where does the Future of Singapore lie? Jesus Felipe Asian Development Bank Industrial Policy, Capabilities, and Growth: Where does the Future of Singapore lie? Jesus Felipe Asian Development Bank Purpose of the talk Understand the economic challenges that Singapore faces Discuss

More information

Macroeconomics II. Growth

Macroeconomics II. Growth Macroeconomics II Growth Growth Possibilities We previously referred to the aggregate production function Y = A K α L 1- α. The growth rate of real GDP, Y, is generated by the contributions of A, K and

More information

Outline 4/22/2011. Koc University April, 2011

Outline 4/22/2011. Koc University April, 2011 4/22/211 Koc University April, 211 Outline Main messages Crisis experience and focus Reserves trends Review of existing approaches Proposed new approach and metric Cost of reserves Reserve alternatives

More information

Addressing The Marketing Problem of the Social Market Economy

Addressing The Marketing Problem of the Social Market Economy Addressing The Marketing Problem of the Social Prepared for: KAS-Conference on 60 Years of Social Market Economy Sankt Augustin, November 30, 2009 Marcus Marktanner, American University of Beirut Outline

More information

PART TWO POLICIES FOR ADJUSTMENT AND GROWTH

PART TWO POLICIES FOR ADJUSTMENT AND GROWTH PART TWO ICIES FOR ADJUSTMENT AND GROWTH Economic Survey of Europe, 22 No. 1 CHAPTER 4 TECHNOLOGICAL ACTIVITY IN THE ECE REGION DURING THE 199s While the task of estimating the contribution of technical

More information

Trade Policy Restrictiveness in Transportation Services

Trade Policy Restrictiveness in Transportation Services Trade Policy Restrictiveness in Transportation Services Ingo Borchert, Batshur Gootiiz and Aaditya Mattoo Development Research Group Trade and International Integration, The World Bank OECD Expert Meeting

More information

Estimating Global Migration Flow Tables Using Place of Birth Data

Estimating Global Migration Flow Tables Using Place of Birth Data Estimating Global Migration Flow Tables Using Place of Birth Data Guy J. Abel Wittgenstein Centre (IIASA, VID/ÖAW, WU) Vienna Institute of Demography/Austrian Academy of Sciences 1 Introduction International

More information

FACTSHEET. Figure [1]: Economic Complexity Index vs. Opportunity Value (Positive Product Complexity Index, 2011) 2 ESP ITA POL BEL DNK PRT

FACTSHEET. Figure [1]: Economic Complexity Index vs. Opportunity Value (Positive Product Complexity Index, 2011) 2 ESP ITA POL BEL DNK PRT Opportunity Value Median = -0.06 FACTSHEET Knowledge Economy Assessment of Tunisia - Identifying and addressing capability and innovation gaps in the Southern and Eastern Mediterranean region (SEMED) Overriding

More information

Lecture 12 The Solow Model and Convergence. Noah Williams

Lecture 12 The Solow Model and Convergence. Noah Williams Lecture 12 The Solow Model and Convergence Noah Williams University of Wisconsin - Madison Economics 312 Spring 2010 Recall: Balanced Growth Path All per-capita variables grow at rate g. All level variables

More information

Institutional Change and Growth-Enabling Governance Capabilities

Institutional Change and Growth-Enabling Governance Capabilities Institutional Change and Growth-Enabling Governance Capabilities Nicolas Meisel Strategy and Research Dept - French Development Agency (AFD) Jacques Ould Aoudia Treasury and Economic Policy Directorate

More information

Lecture 21: Institutions II

Lecture 21: Institutions II Lecture 21: Institutions II Dave Donaldson and Esther Duflo 14.73 Challenges of World Poverty Institutions II: Plan for the lecture Discussion of assigned reading (Acemoglu, Johnson and Robinson) Causes

More information

Movement and development. Australian National University Jan. 17, 2013 Michael Clemens

Movement and development. Australian National University Jan. 17, 2013 Michael Clemens Movement and development Australian National University Jan. 17, 2013 Michael Clemens ? 60% Benefits Little Haiti Cap-Haïtien Gibson and McKenzie 2010 Tongan seasonal workers in NZ NZ$1,400/family

More information

Subjective Well-Being, Income, Economic Development and Growth

Subjective Well-Being, Income, Economic Development and Growth Subjective Well-Being, Income, Economic Development and Growth Dan Sacks, Betsey Stevenson and Justin Wolfers Wharton School, University of Pennsylvania and NBER Annual Bank Conference on Development Economics--Stockholm,

More information

Fear of flying: Policy stances in a troubled world economy

Fear of flying: Policy stances in a troubled world economy Fear of flying: Policy stances in a troubled world economy UNCTAD G-24 Technical Meeting Luxor, 10-11 March 2014 Session 1 Global Economy A weakening economic performance reflects inability to address

More information

Trade and International Integration: A Developing Program of Research

Trade and International Integration: A Developing Program of Research Trade and International Integration: A Developing Program of Research World Bank Development Economics Research Group Geneva, June 2013 Three areas of focus I. Implications of the changing patterns of

More information

Consolidated International Banking Statistics in Japan

Consolidated International Banking Statistics in Japan Total (Transfer Consolidated cross-border claims in all currencies and local claims in non-local currencies Up to and including one year Maturities Over one year up to two years Over two years Public Sector

More information

Lecture 9: Institutions, Geography and Culture. Based on Acemoglu s L. Robbins lectures

Lecture 9: Institutions, Geography and Culture. Based on Acemoglu s L. Robbins lectures Lecture 9: Institutions, Geography and Culture Based on Acemoglu s L. Robbins lectures 1 The Wealth of Nations Vast differences in prosperity across countries today. Income per capita in sub-saharan Africa

More information

ECON 260 Theories of Economic Development. Instructor: Jorge Agüero. Fall 2008. Lecture 1 September 29, 2008 1

ECON 260 Theories of Economic Development. Instructor: Jorge Agüero. Fall 2008. Lecture 1 September 29, 2008 1 ECON 260 Theories of Economic Development. Instructor: Jorge Agüero. Fall 2008. Lecture 1 September 29, 2008 1 General information Time and location: TR 2:10-3:30 p.m. SPR 3123 Office hours: T 10am-11am,

More information

Appendix 1: Full Country Rankings

Appendix 1: Full Country Rankings Appendix 1: Full Country Rankings Below please find the complete rankings of all 75 markets considered in the analysis. Rankings are broken into overall rankings and subsector rankings. Overall Renewable

More information

Governance, Rule of Law and Transparency Matters: BRICs in Global Perspective

Governance, Rule of Law and Transparency Matters: BRICs in Global Perspective Governance, Rule of Law and Transparency Matters: BRICs in Global Perspective Daniel Kaufmann * Senior Fellow, Brookings Institution http://www.brookings.edu/experts/kaufmannd.aspx Panel on Transparency

More information

Accounting For Cross-Country Income Di erences

Accounting For Cross-Country Income Di erences Accounting For Cross-Country Income Di erences January 2011 () Aggregation January 2011 1 / 10 Standard Primal Growth Accounting Aggregate production possibilities frontier: where Change in output is )

More information

Infrastructure and Economic Growth in Egypt

Infrastructure and Economic Growth in Egypt Public Disclosure Authorized Policy Research Working Paper 5177 WPS5177 Public Disclosure Authorized Public Disclosure Authorized Infrastructure and Economic Growth in Egypt Norman V. Loayza Rei Odawara

More information

ECONOMIC DIVERSIFICATION: BUILDING RESILIENCE TO CLIMATE CHANGE

ECONOMIC DIVERSIFICATION: BUILDING RESILIENCE TO CLIMATE CHANGE ECONOMIC DIVERSIFICATION: BUILDING RESILIENCE TO CLIMATE CHANGE Sarwat Jahan Bonn September 7 th, 2015 The team also comprises Chris Papageorgiou (lead), Giang Ho, Ke Wang, Lisa Kolovich, Camelia Minoiu,

More information

Human Resources for Health Why we need to act now

Human Resources for Health Why we need to act now Human Resources for Health Why we need to act now Progress towards the MDGs, particularly in Africa is slow, or even stagnating. Poor people cannot access basic services for want of doctors, nurses and

More information

Subjective Well Being, Income, Economic Development and Growth

Subjective Well Being, Income, Economic Development and Growth Subjective Well Being, Income, Economic Development and Growth Dan Sacks, Betsey Stevenson and Justin Wolfers Wharton School, University of Pennsylvania and NBER CSLS ICP Conference on Happiness December

More information

World Consumer Income and Expenditure Patterns

World Consumer Income and Expenditure Patterns World Consumer Income and Expenditure Patterns 2014 14th edi tion Euromonitor International Ltd. 60-61 Britton Street, EC1M 5UX TableTypeID: 30010; ITtableID: 22914 Income Algeria Income Algeria Income

More information

The contribution of trade in financial services to economic growth and development. Thorsten Beck

The contribution of trade in financial services to economic growth and development. Thorsten Beck The contribution of trade in financial services to economic growth and development Thorsten Beck Finance why do we care? 0.04 BWA GDP per capita growth 0.02 0.00-0.02 COG SLE ALB GAB IND KOR TUR SGP MUS

More information

Economic Growth: The Neo-classical & Endogenous Story

Economic Growth: The Neo-classical & Endogenous Story Density of countries Economic Growth: The Neo-classical & Endogenous Story EC307 ECONOMIC DEVELOPMENT 1960 Dr. Kumar Aniet University of Cambridge & LSE Summer School Lecture 4 1980 2000 created on July

More information

NGO PERSPECTIVE: FROM WORDS TO DEEDS

NGO PERSPECTIVE: FROM WORDS TO DEEDS MMSD & IIED Managing Mineral Wealth NGO PERSPECTIVE: FROM WORDS TO DEEDS Miguel Schloss Executive Director Transparency International Issues Policy distortions Institutional incentives Governance Implications

More information

Political Economy of Growth

Political Economy of Growth 1 Political Economy of Growth Daron Acemoglu Department of Economics, MIT Milan, DEFAP June 11, 2007 The Wealth of Nations Vast differences in prosperity across countries today. Income per capita in sub-saharan

More information

Total Domestic Factoring FCI 594, , , , , , , %

Total Domestic Factoring FCI 594, , , , , , , % Accumulative Turnover Figures for All FCI Members Compared to Worldwide Factoring Turnover (in Millions of EUR and USD) EUR EUR EUR EUR EUR EUR EUR INCREASE 2006 2007 2008 2009 2010 2011 2012 2011/2012

More information

A Pragmatic Approach to Capital Account Liberalization. Eswar Prasad Cornell University

A Pragmatic Approach to Capital Account Liberalization. Eswar Prasad Cornell University A Pragmatic Approach to Capital Account Liberalization Eswar Prasad Cornell University Presentation partly based on my joint work with: Ayhan Kose, Kenneth Rogoff, Shang-Jin Wei (2003, 2006) Raghuram Rajan

More information

Adaptation to land constraints: Is Africa different?

Adaptation to land constraints: Is Africa different? Adaptation to land constraints: Is Africa different? Derek Headey International Food Policy Research Institute (IFPRI) Thom Jayne Michigan State University (MSU) 1 1. Introduction Some 215 years ago, Malthus

More information

Geography and Economic Transition

Geography and Economic Transition Global Spatial Analysis at the Grid Cell Level Mesbah Motamed Raymond Florax Will Masters Department of Agricultural Economics Purdue University March 2009 Urbanization at the grid cell level Growth regimes

More information

Does Export Concentration Cause Volatility?

Does Export Concentration Cause Volatility? Does Export Concentration Cause Volatility? Christian Busch 14. Januar 2010 Overview Countries with undiversified export structure are plausibly more vulnerable to external shocks. But difficult to evaluate

More information

The Macroeconomic Implications of Financial Globalization

The Macroeconomic Implications of Financial Globalization The Macroeconomic Implications of Financial Globalization Eswar Prasad, IMF Research Department November 10, 2006 The views expressed in this paper are those of the author(s) ) only, and the presence of

More information

The Global Crisis in Low- and Middle-Income Countries: How the IMF Responded

The Global Crisis in Low- and Middle-Income Countries: How the IMF Responded The Global Crisis in Low- and Middle-Income Countries: How the IMF Responded Andrea F. Presbitero Alberto Zazzaro 1 Università Politecnica delle Marche 2 Money and Finance Research group (MoFiR) Real and

More information

The distribution of household financial contributions to the health system: A look outside Latin America and the Caribbean

The distribution of household financial contributions to the health system: A look outside Latin America and the Caribbean The distribution of household financial contributions to the health system: A look outside Latin America and the Caribbean Priyanka Saksena and Ke Xu 3 November, 2008 Santiago 1 The distribution of household

More information

Senate Committee: Education and Employment. QUESTION ON NOTICE Budget Estimates 2015-2016

Senate Committee: Education and Employment. QUESTION ON NOTICE Budget Estimates 2015-2016 Senate Committee: Education and Employment QUESTION ON NOTICE Budget Estimates 2015-2016 Outcome: Higher Education Research and International Department of Education and Training Question No. SQ15-000549

More information

Growing Together with Growth Polarization and Income Inequality

Growing Together with Growth Polarization and Income Inequality Growing Together with Growth Polarization and Income Inequality Sudip Ranjan Basu, Ph.D. Economist, United Nations ESCAP UN DESA Expert Group Meeting on the World Economy (LINK Project) United Nations

More information

Institute for Development Policy and Management (IDPM)

Institute for Development Policy and Management (IDPM) Institute for Development Policy and Management (IDPM) Development Economics and Public Policy Working Paper Series WP No. 33/212 Published by: Development Economics and Public Policy Cluster, Institute

More information

Relative Prices and Sectoral Productivity

Relative Prices and Sectoral Productivity Relative Prices and Sectoral Productivity Margarida Duarte University of Toronto Diego Restuccia University of Toronto August 2012 Abstract The relative price of services rises with development. A standard

More information

DEPENDENT ELITES IN POST- SOCIALISM: ARE LAND-BASED POST- COLONIAL SYSTEMS SO DIFFERENT FROM THE TRANSCONTINENTAL ONES? by Pal TAMAS [Institute of

DEPENDENT ELITES IN POST- SOCIALISM: ARE LAND-BASED POST- COLONIAL SYSTEMS SO DIFFERENT FROM THE TRANSCONTINENTAL ONES? by Pal TAMAS [Institute of DEPENDENT ELITES IN POST- SOCIALISM: ARE LAND-BASED POST- COLONIAL SYSTEMS SO DIFFERENT FROM THE TRANSCONTINENTAL ONES? by Pal TAMAS [Institute of Sociology, HAS Budapest] STRUCTURE OF THE PAPER 1. STATE

More information

List of tables. I. World Trade Developments

List of tables. I. World Trade Developments List of tables I. World Trade Developments 1. Overview Table I.1 Growth in the volume of world merchandise exports and production, 2010-2014 39 Table I.2 Growth in the volume of world merchandise trade

More information

FDI performance and potential rankings. Astrit Sulstarova Division on Investment and Enterprise UNCTAD

FDI performance and potential rankings. Astrit Sulstarova Division on Investment and Enterprise UNCTAD FDI performance and potential rankings Astrit Sulstarova Division on Investment and Enterprise UNCTAD FDI perfomance index The Inward FDI Performance Index ranks countries by the FDI they receive relative

More information

MEDAL STANDINGS. WU23CH Racice, Czech Republic 23-26 July 2009. As of SUN 26 JUL 2009. INTERNET Service: www.worldrowing.com.

MEDAL STANDINGS. WU23CH Racice, Czech Republic 23-26 July 2009. As of SUN 26 JUL 2009. INTERNET Service: www.worldrowing.com. MEDAL STANDINGS As of SUN 26 JUL 2009 Men G S B Total Women G S B Total Total G S B Total 1 GER - Germany 3 3 3 9 2 3 1 6 5 6 4 15 1 2 NZL - New Zealand 3 3 1 1 3 1 4 3 3 ITA - Italy 2 1 1 4 1 1 2 2 1

More information

2006/SOM1/ACT/WKSP/007a Recasting Governance for the XXI Century - Presentation

2006/SOM1/ACT/WKSP/007a Recasting Governance for the XXI Century - Presentation 2006/SOM1/ACT/WKSP/007a Recasting Governance for the XXI Century - Presentation Submitted by: Miguel Schloss, Managing Partner DamConsult Ltd. APEC Workshop on Anti-Corruption Measures for the Development

More information

Region Country AT&T Direct Access Code(s) HelpLine Number. Telstra: 1 800 881 011 Optus: 1 800 551 155

Region Country AT&T Direct Access Code(s) HelpLine Number. Telstra: 1 800 881 011 Optus: 1 800 551 155 Mondelēz International HelpLine Numbers March 22, 2013 There are many ways to report a concern or suspected misconduct, including discussing it with your supervisor, your supervisor s supervisor, another

More information

Life-cycle Human Capital Accumulation Across Countries: Lessons From U.S. Immigrants

Life-cycle Human Capital Accumulation Across Countries: Lessons From U.S. Immigrants Life-cycle Human Capital Accumulation Across Countries: Lessons From U.S. Immigrants David Lagakos, UCSD and NBER Benjamin Moll, Princeton and NBER Tommaso Porzio, Yale Nancy Qian, Yale and NBER Todd Schoellman,

More information

GLOBAL IMBALANCES, CAPITAL FLOWS, AND THE CRISIS

GLOBAL IMBALANCES, CAPITAL FLOWS, AND THE CRISIS GLOBAL IMBALANCES, CAPITAL FLOWS, AND THE CRISIS Gian Maria Milesi-Ferretti International Monetary Fund Global imbalances have declined.. Even though stock positions are still expanding 20 15 Net foreign

More information

Composition of Premium in Life and Non-life Insurance Segments

Composition of Premium in Life and Non-life Insurance Segments 2012 2nd International Conference on Computer and Software Modeling (ICCSM 2012) IPCSIT vol. 54 (2012) (2012) IACSIT Press, Singapore DOI: 10.7763/IPCSIT.2012.V54.16 Composition of Premium in Life and

More information

Diversification versus Polarization: Role of industrial policy in Asia and the Pacific

Diversification versus Polarization: Role of industrial policy in Asia and the Pacific TOWARDS A RETURN OF INDUSTRIAL POLICY? ARTNeT SYMPOSIUM 25-26 JULY 211 ESCAP, BANGKOK Diversification versus Polarization: Role of industrial policy in Asia and the Pacific Sudip Ranjan Basu* International

More information

SUMMARY REPORT OF THE 2013 UIS INNOVATION DATA COLLECTION

SUMMARY REPORT OF THE 2013 UIS INNOVATION DATA COLLECTION INFORMATION PAPER NO. 24 FEBRUARY 2015 SUMMARY REPORT OF THE 2013 UIS INNOVATION DATA COLLECTION - i - UNESCO The constitution of the United Nations Educational, Scientific and Cultural Organization (UNESCO)

More information

Rethinking the Wealth of Nations. Daron Acemoglu, MIT FEEM Lecture, December 14, 2009.

Rethinking the Wealth of Nations. Daron Acemoglu, MIT FEEM Lecture, December 14, 2009. Rethinking the Wealth of Nations Daron Acemoglu, MIT FEEM Lecture, December 14, 2009. 1 The Failure of Nations Vast differences in prosperity across countries today. Income per capita in sub-saharan Africa

More information

Know the Facts. Aon Hewitt Country Profiles can help: Support a decision to establish or not establish operations in a specific country.

Know the Facts. Aon Hewitt Country Profiles can help: Support a decision to establish or not establish operations in a specific country. Aon Hewitt Country Profiles Your eguide to employment requirements and practices Profiles for nearly 90 countries worldwide Risk. Reinsurance. Human Resources. Know the Facts Whether you are a newcomer

More information

Business Phone. Product solutions. Key features

Business Phone. Product solutions. Key features Product solutions Enjoy free calls and significant savings on your business landline bills with from International. Set-up is simple and you don t need to change your existing telephone numbers, plus there

More information

The Effects of Infrastructure Development on Growth and Income Distribution

The Effects of Infrastructure Development on Growth and Income Distribution The Effects of Infrastructure Development on Growth and Income Distribution César Calderón Luis Servén (Central Bank of Chile) (The World Bank) ALIDE - The World Bank - Banco BICE Reunión Latinoamericana

More information

Export Survival and Comparative Advantage

Export Survival and Comparative Advantage Export Survival and Comparative Advantage (Work in progress) Regional Seminar on Export Diversification, October 27-28, 2010 Bolormaa Tumurchudur, UNCTAD Miho Shirotori, UNCTAD Alessandro Nicita, UNCTAD

More information

The geography of development within countries

The geography of development within countries The geography of development within countries J. Vernon Henderson Brown University & NBER June 2012 GDN 13TH ANNUAL GLOBAL DEVELOPMENT CONFERENCE Urbanization and Development: Delving Deeper into the Nexus

More information

Trends in global income inequality and their political implications

Trends in global income inequality and their political implications Trends in global income inequality and their political implications LIS Center; Graduate School City University of New York Talk at the Stockholm School of Economics, September 1, 2014 A. National inequalities

More information

41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50.

41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50. Overall Results Climate Change Performance Index 2012 Table 1 Rank Country Score** Partial Score Tendency Trend Level Policy 1* Rank Country Score** Partial Score Tendency Trend Level Policy 21 - Egypt***

More information

Global Dialing Comment. Telephone Type. AT&T Direct Number. Access Type. Dial-In Number. Country. Albania Toll-Free 00-800-0010 888-426-6840

Global Dialing Comment. Telephone Type. AT&T Direct Number. Access Type. Dial-In Number. Country. Albania Toll-Free 00-800-0010 888-426-6840 Below is a list of Global Access Numbers, in order by country. If a Country has an AT&T Direct Number, the audio conference requires two-stage dialing. First, dial the AT&T Direct Number. Second, dial

More information

Incen%ves The Good, the Bad and the Ugly

Incen%ves The Good, the Bad and the Ugly Incen%ves The Good, the Bad and the Ugly Vale Columbia Center Interna%onal Investment Conference New York, Nov 13-14, 2013 Sebas%an James The World Bank Group 1 Prevalence of Tax Incen%ves around the Number

More information

Infrastructure investment and growth

Infrastructure investment and growth Infrastructure investment and growth Luis Servén The World Bank IMF, November 2010 Background How important is infrastructure for economic growth? Old question even in Adam Smith s Wealth of Nations Empirically

More information

Evaluation with stylized facts

Evaluation with stylized facts Evaluation with stylized facts AMPERE Subgroup on IAM Validation Valeria Jana Schwanitz Potsdam Institute for Climate Impact Research 27. Mai 2013 Content Fundamental laws and stylized facts Systematic

More information

POPULATION DENSITY, LAND, AND FUTURE TRAJECTORIES OF STRUCTURAL TRANSFORMATION IN AFRICA

POPULATION DENSITY, LAND, AND FUTURE TRAJECTORIES OF STRUCTURAL TRANSFORMATION IN AFRICA POPULATION DENSITY, LAND, AND FUTURE TRAJECTORIES OF STRUCTURAL TRANSFORMATION IN AFRICA T.S. Jayne, Jordan Chamberlin, Milu Muyanga, Derek Headey Michigan State University, USA Plenary presentation at

More information

Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details

Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details White Paper Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details What You Will Learn The Cisco Global Cloud Index is an ongoing effort to forecast the growth of global data center and

More information

Finance, Growth & Opportunity. Implications for policy

Finance, Growth & Opportunity. Implications for policy Finance, Growth & Opportunity Implications for policy Today, I will make three points 1) Finance matters for human welfare beyond crises. 2) Financial innovation is associated with arguably necessary for

More information

Non-market strategy under weak institutions

Non-market strategy under weak institutions Lectures 5-6 Non-market strategy under weak institutions 1 Outline 1. Does weakness of institutions matter for business and economic performance? 2. Which institutions matter most? 3. Why institutions

More information

The big pay turnaround: Eurozone recovering, emerging markets falter in 2015

The big pay turnaround: Eurozone recovering, emerging markets falter in 2015 The big pay turnaround: Eurozone recovering, emerging markets falter in 2015 Global salary rises up compared to last year But workers in key emerging markets will experience real wage cuts Increase in

More information

In Defense of Wall Street. The Social Productivity of the Financial System

In Defense of Wall Street. The Social Productivity of the Financial System In Defense of Wall Street The Social Productivity of the Financial System Finance is powerful Mobilizes Researches and allocates Monitors and exerts corporate control Provides risk diversification and

More information

Digital TV Research. http://www.marketresearch.com/digital-tv- Research-v3873/ Publisher Sample

Digital TV Research. http://www.marketresearch.com/digital-tv- Research-v3873/ Publisher Sample Digital TV Research http://www.marketresearch.com/digital-tv- Research-v3873/ Publisher Sample Phone: 800.298.5699 (US) or +1.240.747.3093 or +1.240.747.3093 (Int'l) Hours: Monday - Thursday: 5:30am -

More information

Informality in Latin America and the Caribbean

Informality in Latin America and the Caribbean WPS4888 Policy Research Working Paper 4888 Informality in Latin America and the Caribbean Norman V. Loayza Luis Servén Naotaka Sugawara The World Bank Development Research Group Macroeconomics and Growth

More information

Informality in Latin America and the Caribbean

Informality in Latin America and the Caribbean Public Disclosure Authorized Policy Research Working Paper 4888 WPS4888 Public Disclosure Authorized Public Disclosure Authorized Informality in Latin America and the Caribbean Norman V. Loayza Luis Servén

More information

July 2015. Figure 1. 1 The index is set to 100 in 2000. House prices are deflated by country CPIs in most cases.

July 2015. Figure 1. 1 The index is set to 100 in 2000. House prices are deflated by country CPIs in most cases. July 2015 Globally, house prices continue a slow recovery. The Global House Price Index, an equally weighted average of real house prices in nearly 60 countries, inched up slowly during the past two years

More information

Sovereign Defaults: The Price of Haircuts

Sovereign Defaults: The Price of Haircuts Sovereign Defaults: The Price of Haircuts Juan Cruces Univ. Torcuato Di Tella Christoph Trebesch University of Munich and CESIfo Debt Crisis Conference, Reykjavik University, 08.10.2011 1 INTRODUCTION

More information

Contact Centers Worldwide

Contact Centers Worldwide A Contact Centers Worldwide Country Tel.no. Supported lang. Contact Center Albania Algeria 852 665 00 +46 10 71 66160 Angola 89900 +34 91 339 2121 (Port) and Portuguese +34 913394044 +34 913394023 (Por)

More information

I. World trade developments

I. World trade developments I. World trade developments The value of world merchandise exports increased by 20 per cent in 2011 while exports of commercial services grew by 11 per cent. Key developments in 2011: a snapshot Trade

More information

Good Governance and its benefits on economic Development

Good Governance and its benefits on economic Development Good Governance and its benefits on economic Development An Overview of Current Trends World Bank Institute Outline What is governance? Why does governance matter? Costs of poor governance Benefits of

More information

Gap Banana Republic Old Navy Athleta Intermix. Stores Online (countries) Stores Online (countries) Stores Online (countries) Stores Franchise Stores

Gap Banana Republic Old Navy Athleta Intermix. Stores Online (countries) Stores Online (countries) Stores Online (countries) Stores Franchise Stores Gap Inc.'s Global Footprint As of the end of Q3 2016, Gap Inc. had 3,742 company operated or franchised stores in operation across 50 countries and our global brands have the ability to ship online orders

More information

Specialization Patterns in International Trade

Specialization Patterns in International Trade Specialization Patterns in International Trade Walter Steingress November 16, 2015 Abstract The pattern of specialization is key to understanding how trade affects the production structure of an economy.

More information

Fall 2015 International Student Enrollment

Fall 2015 International Student Enrollment Fall 2015 International Student Enrollment Prepared by The Office of International Affairs Nova Southeastern University Nova Southeastern University International Student Statistics Fall 2015 International

More information