Three essays on financial crises, foreign direct investment and cross-national coordination

Date
2012-08
Authors
Bogach, Olga Vladislavovna
Contributor
Advisor
Department
Instructor
Depositor
Speaker
Researcher
Consultant
Interviewer
Annotator
Journal Title
Journal ISSN
Volume Title
Publisher
[Honolulu] : [University of Hawaii at Manoa], [August 2012]
Volume
Number/Issue
Starting Page
Ending Page
Alternative Title
Abstract
The first two chapters of this dissertation examine the evolution of foreign direct investment (FDI) inflows to developing countries around financial crises. In the first chapter, I empirically and thoroughly examine the Fire-Sale FDI hypothesis and describe the pattern of FDI inflows surrounding financial crises. I add a more granular detail about the types of crises and their potentially differential effects on FDI. Moreover, I distinguish between Mergers and Acquisitions (M&A) and Greenfield investment, as well as between different motivations for FDI--horizontal and vertical. The results indicate that financial crises have a strong negative effect on inward FDI in developing countries. Crises are also shown to reduce the value of horizontal and vertical FDI. I do not find empirical evidence of Fire-Sale FDI. On the contrary, financial crises are shown to affect FDI flows and M&A activity negatively. In the second chapter, I focus my analysis of FDI on the members of the Association of South East Asian Nations (ASEAN). I analyze historical data on ASEAN inward FDI in the context of the Asian financial crisis (AFC) and the 2008 economic downturn and present new data on ASEAN FDI cycles following the 1997 crisis relative to historical crises incidences. Empirically examining the effects of the AFC on ASEAN, I compare them to the historical averages for the Asian region as well a broad sample of forty developing countries. Distinguishing between the different types of crises and FDI, I find that AFC had a negative and relatively large effect on ASEAN FDI, as compared with historical averages. Finally, the third chapter uses an experimental approach to study whether nationality serves as a coordination device in a cross-national economic experiment. The results show that nationality serves as a coordination device if common nationality is the only piece of information available to the subjects. However, providing participants with additional information about their partner diminishes this effect. I also find that subjects are likely to coordinate on the Pareto-dominant equilibrium at about the same rate if the partner has a different nationality than if nationality is unknown.
Description
Ph.D. University of Hawaii at Manoa 2012.
Includes bibliographical references.
Keywords
financial crises, foreign direct investment, cross-national coordination
Citation
Extent
Format
Geographic Location
Time Period
Related To
Theses for the degree of Doctor of Philosophy (University of Hawaii at Manoa). Economics.
Table of Contents
Rights
Rights Holder
Local Contexts
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.