Belay Seyoum

The impact of intellectual property rights on foreign direct investment

Abstract While foreign direct investment (FDI) has been discussed extensively, little research has been undertaken on the nature and direction of the relationship between intellectual property rights protection and FDI. The author uses empirical findings based on a study of 27 countries to support the propositions that the level of intellectual property rights protection is a strong determinant of inward investment and that intellectual property rights have a greater impact on inward investment than many economic policy variables among certain country groups.

Export performance of developing countries under the Africa Growth and Opportunity Act: Experience from US trade with Sub‐Saharan Africa

Purpose - The purpose of this study is to assess the implications of US trade preferences under the African Growth and Opportunity Act (AGOA) and its impact on beneficiary country exports. Design/methodology/approach - The approach is to use Wilcoxon signed rank test and time series regression analysis using ARIMA. Findings - The results largely indicate that AGOA has a positive but not significant effect on beneficiary exports to the USA for all country groups. Its effect is also quite marginal on sectoral exports except for textiles and apparel. Similarly, AGOAs effect is positive but not significant for all major exporters except Lesotho. Originality/value - A proper understanding of this relationship will help donors and recipients devise appropriate policies to help encourage the growth and diversification of exports that is so vital for developing countries.

The impact of public and private sector transparency on foreign direct investment in developing countries

Purpose – This paper aims to examine the role of public and private transparency in attracting inward foreign direct investment (FDI) flows to developing countries.Design/methodology/approach – The study tests the hypothesis that developing countries with low levels of public and private sector transparency attract lower levels of FDI inflows. It also tests the hypotheses that private sector transparency in developing countries has a greater impact on inward FDI than public sector transparency. A cross‐sectional model was tested for 58 developing countries (using regression analysis) over the 2003‐2006 period.Findings – The empirical analysis shows that: private sector transparency has a significant and positive effect on inward FDI flows to developing countries; public sector transparency has a positive and significant effect on FDI inflows; and private sector transparency has a greater influence on FDI inflows to developing countries than public sector transparency.Originality/value – This is the first ...

An Empirical Analysis of the Impact of Corporate Transparency On Foreign Direct Investment

This study tests for the relation between corporate transparency and foreign direct investment (FDI) using a sample of 118 countries. The study also develops a set of indicators to measure corporate transparency. The findings indicate support for the hypotheses that a) greater levels of corporate transparency are associated with higher levels of inward FDI flows, and b) corporate transparency has a greater impact on inward FDI in developing countries than developed countries.

Foreign trade zones in the United States: A study with special emphasis on the proposal for trade agreement parity

Purpose - In 2008, a bill was introduced in the 110th Congress (HR6415) to address the “unintended consequences” of US free trade agreements (US FTA) on manufacturers operating in US foreign trade zones (FTZs). Presently, US manufacturers operating in FTZs that use imported components pay a tariff (on finished goods entering the US market), which is not paid by their competitors in countries that have free trade agreements (FTAs) with the USA. The purpose of this paper is to explore the implications of a legislative proposal to address this issue (the bill is still under consideration and not yet been passed by Congress) for domestic firms and the overall economy. Design/methodology/approach - The paper is largely based on the analysis of the legislative proposal (HR6415), and US trade data obtained from the United Nations. Findings - The paper shows that the trade agreement parity (TAP) proposal may have the undesirable effect of encouraging local firms (in US FTZs) to use foreign components and increasing the trade deficit. It also shows that the proposal, by facilitating the entry of more foreign imports undermines the original purpose for which FTZs were designed. Originality/value - There are no papers examining the implications of this Congressional bill on domestic competition and the overall US economy. This paper and its recommendations will help US policymakers to re-evaluate the existing proposal and also revisit the role of FTZs in the US economy.

Property rights versus public welfare in the protection of trade secrets in developing countries

Most of the studies on international technology transfer deal mainly with the traditional issues of patents and trademarks. There is very little analysis of the important policy issues pertaining to trade secrets—an area that is becoming increasingly important as more and more companies maintain their technologies in the form of trade secrets rather than patents. This article analyzes the present regulatory regime on trade secrets in developing countries and concludes that the present system fails to balance the property rights of the innovator with that of the interest of the public. It addresses some major policy issues and makes certain recommendations to resolve the problem.

Export Controls and International Business: A Study with Special Emphasis on Dual-Use Export Controls and Their Impact on Firms in the US

Abstract: The production of hazardous materials that can be used for civilian and military purposes (dual-use items) has led the U.S. government to impose export controls in order to prevent the proliferation of risky materials falling into the wrong hands — a concern in this age of international terrorism. Export controls are prudent government responses to the emergence of a new and widely perceived threat to national security. However, existing controls have failed to keep up with rapid global economic and technological changes, and are likely to have adverse effects on firms’ economic performance. This article suggests regulatory and policy reforms, as well as corporate strategies for dealing with U.S. export controls in order to make such controls effective and relevant to changing technological developments. Among the problems the article identifies are the negative effects of these export controls on firm innovation, market competitiveness, investment, and trade flows. These issues point to a pressing agenda for regulatory reform. Reforms can focus on limiting control lists, enhancing the bilateral or multilateral cooperation in export controls, improving the efficiency and transparency of the licensing system, improving resources and the outreach to small and medium-size exporters, and compensation for the loss of market share.

Methods of Payment

Under this option, the student applies for a short-term loan that accrues interest at the rate of 5 percent annually. The application is accessed online on ASAP (https://asap.utsa.edu) (Automated Student Access Program). If approved, the loan proceeds will be authorized and posted to the student’s account. The loan is limited to the total amount of tuition and fees assessed less any available financial aid that is awarded to the student. Students that add semester credit hours after signing the promissory note must reapply for an additional loan for the new balance.

Growth and Direction of International Trade

International trade is the exchange of goods and services across national boundaries. It is the most traditional form of international business activity and has played a major role in shaping world history. It is also the first type of foreign business operation undertaken by most companies because importing or exporting requires the least commitment of, and risk to, the company’s resources. For example, a company could produce for export by using its excess production capacity. This is an inexpensive way of testing a product’s acceptance in the market before investing in local production facilities. A company could also use intermediaries, who will take on import-export functions for a fee, thus eliminating the need to commit additional resources to hire personnel or maintain a department to carry out foreign sales or purchases (Daniels and Radebaugh, 2004). International trade in services has grown over the past decade at an annual rate of about 18 percent compared to that of approximately 9 percent for merchandise trade. Trade in services constitutes 25 percent of overall world trade in 2004 (WTO, 2004a). In some countries, such as Panama and the Netherlands, services account for about 40 percent or more of total merchandise trade. Typical service exports include transportation, tourism, banking, advertising, construction, retailing, and mass communication.

A Comparative Study of U.S and Japanese Generalized System of Preferences

Exports help developing countries to expand their production, promote industrialization and accelerate their economic growth. They played an important part in the economic transformation of Southeast Asian countries. The Generalized System of Preferences (GSP) is one of the ways in which developing countries can increase their exports to the markets of developed nations. The GSP, a unilateral, non‐reciprocal program agreed under the United Nations provides preferential duty entry to numerous products imported into developed countries by eligible developing countries. The objective of this study is to examine the role of GSP in stimulating exports of developing countries. It also provides a comparative appraisal of the GSP schemes of the United States and Japan. The paper also makes certain recommendations to make GSP schemes more efficient and applicable to particular situations.