Catherine Y. Co

The export effect of immigration into the USA

Much has been written on the connection between migration and international trade. Human history provides important examples of migrations leading to increased trade activity, with perhaps the most well-known example of the ‘Overseas Chinese’. This study investigates the trade-related importance of Chinese and other immigrants into the USA. Previous studies may have underestimated (or overestimated) the relationship between trade and migration with nations treated as featureless plains rather than as varied landscapes. This study contends that an understanding of the immigration–trade relationship can be improved upon by examining the specific pattern and destination of immigration into specific US states. Using state level export data to 28 immigrant source countries in 1993, a strong immigration–trade link is found, reinforcing conclusions made by previous research using country level data. The compelling connection between immigration and trade found in this study and others suggests that future changes to US immigration policies necessitate that their trade effects also be taken into account.

Evolution of the Geography of Innovation: Evidence from Patent Data

This paper examines the evolution of patent activities across U.S. states from 1963 to 1997. Several patterns are uncovered. First, there is invention catch-up by some lagging states. Second, the evidence is consistent with knowledge diffusion. Third, leading states unable to reinvent themselves lose their leads. Fourth, catch-up can be across a diverse field of activities or focused on select activities. State patent growth is positively correlated to industry R&D and a variable capturing labor skill and infrastructure quality. These provide rationale for state policy makers to increase support to programs that enhance labor skill (e.g., education) and infrastructure quality. Copyright 2002 Gatton College of Business and Economics, University of Kentucky.

Trade, foreign direct investment and industry performance

Abstract This paper investigates the US margins effect of imports and FDI using a panel of 448 manufacturing industries for 1982–1990. In the single equation two-way fixed effects regressions, greenfield FDI has no significant effect on margins; while there is some indication that non-greenfield FDI affect margins and the effect is found to depend on the level of industry concentration. When potential endogeneity among variables are taken into account, both types of FDI are found to increase margins. However, for non-greenfield FDI, the effect appears with a lag of two periods. For the most part, the results indicate that the positive effect on margins holds for industries with ‘low’ levels of concentration. Beyond some ‘critical’ level, the competitive effect of FDI predominates.

Intellectual Property Rights, Environmental Regulations, and Foreign Direct Investment

Sustainable development has been a popular buzzword among policymakers and economists for over a decade. Although a key tenet of maintaining a sustainable development path for many economies rests on attracting mobile capital, theoretical and empirical evidence into the institutional policies that attract factors remains largely unresolved. This paper takes a positive look at the determinants of attracting capital with particular attention paid to intellectual property rights and environmental regulations. (JEL F23, O34, Q28)

US Exports of Knowledge-Intensive Services and Importing-Country Characteristics

This paper studies the determinants of US exports of knowledge-intensive services. Using US export data to as many as 29 countries between 1989 and 2002, I find the following. First, gross product and per capita income have heterogeneous effects on affiliated and non-affiliated exports of knowledge-intensive services. Secondly, property rights protection matters. Thirdly, infrastructure quality and political institutions only matter in the transfer of knowledge assets. Finally, financial depth is only correlated with the export of services to non-affiliates.

Is foreign direct investment attracted to 'knowledge creators'?

The effect of ‘knowledge creators’ on location patterns of new foreign plants entering the USA from 1986 to 1993 is analysed. The empirical results from a conditional logit model suggest a link exists between knowledge bases, measured by patent counts, and the location decisions of foreign plants. In the limit, these results imply that a 1% increase in patent counts is associated with an increase in the probability of attracting a new foreign plant by as much as 1.874%.

Technological Convergence Among US Regions and States

This paper employs unit root tests that allow for two endogenously determined structural breaks to study whether or not invention activities are converging across US regions/states. Using US patent data from 1929 to 1997, we find technological β-convergence in six of the nine Census regions, in 11 of the 14 leading states and in 28 of the 34 lagging states. Stochastic convergence, on the other hand, is found in three regions, in four leading states and in 17 lagging states. Carlino and Mills (1993) point out that both β- and stochastic convergence are necessary conditions for convergence. Putting these results together, we find convergence (both β- and stochastic) in invention activities in three regions, in three leading states and in 16 lagging states.

Are shocks to foreign investment in developing countries permanent or temporary?: Evidence from panel unit root tests

Abstract We examine the time path of foreign direct and portfolio investment in developing countries to test if shocks have permanent or temporary effects. Our findings indicate that shock effects are temporary. The results are robust to the strictness of balance of payment controls.

New Insights on US Aggregate and State Level Trade with the China Region

Aggregate trade data with breakdown into related and non-related party components show that US multinational enterprises use different trading strategies in the China region relative to other countries. US trade with the China region in 2002–2007 is characterized by arms-length transactions. State-level trade data show great variability in state engagement with the region through trade: exports to the region range from 1 to 28 percent of state exports. In addition, compared to exports to other countries, exports to the region are highly concentrated. At the extreme, for some states, 96–98 percent of exports to the region are computer and electronic products. Finally, gravity regressions show that state exports to Hong Kong are positively associated with the relative size of the Hong Kong-born population in the states. There is no evidence that stricter labor regimes lead to lower state exports.

US Trade in Advanced Technology Products

In 2002, US net exports of advanced technology products (ATPs) registered a deficit of US