DAĞITILMAYAN YABANCI KARLARIN BELIRLEYICILERI

Yıl 2017, Cilt: 6 Sayı: 1, 24 - 45, 01.06.2017

Burçak Polat

Öz

ABSTRACTPrevious studies have overwhelmingly treated Foreign Direct Investment FDI as a monolithic variable rather than a multidimensional one. However, FDI consists of three main components. This study investigates the responsiveness of reinvested earnings as a sub-component of FDI in the 80 countries to the macro-economic indicators and individual country risks for the 2006–2012 period. The study found strong evidence that reinvested earnings are positively correlated with the political risk ratings confidence level , GDP, GDP growth rate, and consumer confidence level of each individual host country and are negatively associated with repatriation and payment delay risk ratings.Key Words: FDI, foreign reinvested earnings, foreign retained earnings, dynamic panel dataJEL Codes: C23, F21, F23, F24, F29

Anahtar Kelimeler

DYY, Yabancı Dağıtılmayan Karlar, Dinamik Panel Veri

DETERMINANTS OF REINVESTED EARNINGS AS A COMPONENT OF FOREIGN DIRECT INVESTMENT

Öz

Previous studies have overwhelmingly treated Foreign Direct Investment FDI as a monolithic variable rather than a multidimensional one. However, FDI consists of three main components. This study investigates the responsiveness of reinvested earnings as a sub-component of FDI in the 80 countries to the macro-economic indicators and individual country risks for the 2006–2012 period. The study found strong evidence that reinvested earnings are positively correlated with the political risk ratings confidence level , GDP, GDP growth rate, and consumer confidence level of each individual host country and are negatively associated with repatriation and payment delay risk ratings

Anahtar Kelimeler

FDI, foreign reinvested earnings, foreign retained earnings, dynamic panel data

Kaynakça

• Arbatli, Elif. 2011. “Economic Policies and FDI Inflows to Emerging Market Economies.” IMF Working Paper, 11/192.
• Arellano, M., and S. Bond. 1991. “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” The Review of Economic Studies 58 (2): 277–297.
• Arellano, M., and O. Bover. 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Model.” Journal of Econometrics 68 (1): 29–51.
• Auerbach, A. J., and K. Hassert. 1993. “Taxation and Foreign Direct Investment, in the United States, A Reconsideration of the Evidence.” In Studies in International Taxation, edited by A. Giovannini, R. G. Hubbard, and J. Slemrod. Chicago: Chicago University Press: 119–148
• Bevan, Alan A., and S. Estrin. 2004. “The Determinants of Foreign Direct Investment into the European Transition Economies.” Journal of Comparative Economics 32 (4): 775–787.
• Bilgili, F., N.S. Tülüce Halıcı, and İ. Doğan. 2012. “The Determinants of FDI in Turkey: A Markow Regime-Switching Approach.” Economic Modelling 29 (4): 1161–1169.
• Blundell, R., and S. Bond. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.” Journal of Econometrics 87 (1): 115–143.
• Brewer, Thomas L. 1993. “Government Policies, Market Imperfections and Foreign Direct Investment.” Journal of International Business Studies 24 (1): 101–120.
• Buckley, P. J., Clegg, J., Cross, A. R., Liu, X., Voss, H., & Zheng, P. (2007). The determinants of Chinese outward foreign direct investment. WestminsterResearch http://www.wmin.ac.uk/westminsterresearch
• Campa, Jose Manuel. 1993. “Entry of Foreign Firms in the United States under Exchange Rate Uncertainty.” The Review of Economics and Statistics 75 (4): 614–622.
• Carstensen, K., and F. Toubal. 2003. “Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis.” Kiel Working Paper no.1143.
• Chakravarty, S., and M. Xiang. 2011. “Determinants of Profit Reinvestment by Small Business in Emerging Economies.” Financial Management 40 (3): 553–590.
• Cushman, David O. 1985. “Real Exchange Rate Risk, Expectations and the Level of Direct Investment.” The Review of Economics and Statistics 67 (2): 297–308.
• Desbordes, Rodolphe. 2007. “The Sensitivity of U.S. Multinational Enterprises to Political and Macroeconomic Uncertainty: A Sectoral Analysis.” International Business Review 16 (6): 732–750.
• Dunning, J. H. 1977. Trade, location of economic activity and the MNE: A search for an eclectic approach. In B. Ohlin, P. O. Hesselborn, & P. M. Wijkman (Eds.),The international allocation of economic activity(pp. 395– 418). London: Macmillan.
• Dumludağ, Devrim. 2009. “An Analysis of the Determinants of Foreign Direct Investment in Turkey: The Role of Institutional Context.” Journal of Business Economics and Management 10 (1): 15–30.
• Erdal, F., and E. Tataoğlu. 2002. “Locational Determinants of Foreign Direct Investment in an Emerging Market Economy: Evidence from Turkey.” Multinational Business Review 10 (1): 21–27.
• “Ernst and Young’s Attractiveness Survey.” Russia, 2013 (www.ey.com)
• Eşiyok, Bülent 2011. “Determinants of Foreign Direct Investment in Turkey: A Panel Study Approach.” MPRA paper 36538, University Library of Munich, Germany.
• Froot, K. A., and J. C. Stein. 1991. “Exchange Rates and Foreign Direct Investment: An Imperfect Capital Market Approach.” The Quarterly Journal of Economics 106 (4): 1191–1217.
• Hansen, Lars Peter. 1982. “Large Sample Properties of Generalized Method of Moments Estimator” Econometrica 50 (4): 1029–1054.
• Janicki, J., and P. Wunnava. 2004. “Determinants of Foreign Direct Investment: Empirical Evidence from EU Accession Candidates.” Applied Economics, Taylor & Francis Journals 36 (5): 505–550.
• Kayam, S.S. 2009. Home market determinants of FDI outflows from developing and transition economies. Economic and Social Research Center, ITU Faculty of Management,http://mpra.ub.uni-muenchen.de/16781/
• Kimino, S., N. Driffield, and D. Saal. 2012. “Do Keiretsu Really Hinder FDI into Japanese Manufacturing?” International Journal of the Economics of Business 19 (3): 377–395.
• Kundu, Sumit K., and Farok J. Contractor. 1999. “Country Location Choices of Service Multinationals: An Empirical Study of the International Hotel Sector.” Journal of International Management 5 (4) (Winter): 299–317.
• Koyuncu, F. 2010. Türkiye’de Seçilmiş Makroekonomik Değişkenlerin Doğrudan Yabancı Sermaye Yatırımları Uzerindeki Etkisinin Yapısal Var Analizi: 1990–2009 Dönemi [The effects of some macroeconomics variables on FDI in Turkey: A structural vector autoregression between the period 1990–2009].Ekonomi Bilimleri Dergisi, 2(1), 1309–8020.
• Loree, D. W., and S. E. 1994. Guisinger. “Policy and Non-policy Determinants of U.S. Equity Foreign Direct Investment.” Journal of International Business Studies 26 (2): 281–299.
• Lundan, Sarianna M. 2006. “Reinvested Earnings as a Component of FDI: An Analytical Review of the Determinants of Reinvestment.” UN Transnational Corporations 15 (3): 33–64.
• Oseghale, B. D., and O. C. Nwachukwu. 2010. “Effect of the Quality of Host Country Institutions on Reinvestment by United States Multinationals: A Panel Data Analysis.” International Journal of Management 27 (3): 497–510.
• Roodman, David. 2009. “How to Do xtabond 2: An Introduction to Difference and System GMM in Stata.” The Stata Journal 9 (1): 86–136.
• Salorio, Eugene M., and Thomas L. Brewer. 2013. “Components of Foreign
• Direct Investment Flows.” Latin American Business Review 1 (2): 27–45.
• Taylor, T., R. Mahabir, V. Jagessar, and J. Cotton. 2013. “Examining Reinvestment in Trinidad and Tobago.” Central Bank of Trinidad and Tobago, Spain: Working Paper 10.
• Tokunbo, S. O., and A. A. Lloyd. 2009. “Foreign Direct Investment and Exchange Rate Volatility in Nigeria.” International Journal of Applied Econometrics and Quantitative Studies 9 (2): 1–13.
• Tolentino, P.E. 2008. The determinants of the outward foreign direct investment of China and India: Whither the home country? Working Paper Series, United Nations University – Maastricht Economic and social Research http://www.merit.unu.edu training center on Innovation and Technology.
• UNCTAD “World Investment Report 2008.” 2008. New York and Geneva: United Nations.
• Wolff, Guntram B. 2007. “Foreign Direct Investment in the Enlarged EU: Do Taxes Matter and To What Extent?” Open Economic Review 18 (3): 327– 346.