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My focus is on empirical research.
In my current work, I am studying aspects of globalization and economic development. For example, I am contributing to the question:
Some of my work has a regional focus on countries in Africa. For example:
Scroll down to find details on my working papers and publications. |
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joint with Octavio Escobar
Hohenheim Discussion Papers in Business, Economics and Social Sciences, 2019, No. 05-2019, Institute of Economics, University of Hohenheim |
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IEE Working Paper Series, 2013, No. 196, Institute of Development Research and Development Policy at the Ruhr-University Bochum
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joint with Octavio Escobar
The World Economy, 2020, Vol. 43, No. 3, pp. 557-585 Link: doi.org/10.1111/twec.12879 Open access article |
Foreign direct investment (FDI) flows to Mexico are substantial and play an important role in the Mexican economy since the mid-1990s. These investments reflect the activities of multinational firms that shape to some extent the economic landscape and sectoral structure in this host country. We illustrate that there is considerable variation in the amounts of FDI and structural change within the country and across time. Based on this, the paper's main purpose is to analyze whether there is a significant impact of FDI on structural change. We conduct an empirical analysis covering the period 2006-2016. We use the fixed-effects estimator where the unit of observation is a Mexican state for which we calculate structural change from the reallocation of labor between sectors. The results suggest that (if any) there is a positive effect from FDI on growth-enhancing structural change. This effect depends critically on the lag structure of FDI. Moreover, there is some evidence that the positive effect (i) arises from FDI flows in the industry sector and (ii) is present for medium- and low-skilled labor reallocation.
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joint with Matthias Busse and Ceren Erdogan
Review of Development Economics, 2019, Vol. 23, No. 1, pp. 33-53 Link: doi.org/10.1111/rode.12543 |
In this paper, we analyze the role of structural transformation in view of the remarkable growth performance of Sub‐Saharan African countries since the late 1990s. Our analysis covers 41 African countries over the period 1980 to 2014 and accounts for structural transformation by employing the analytical frameworks of (i) growth decomposition and (ii) growth regression. Even though the low‐productive agricultural sector continues to employ most of the African workforce, our results reveal that structural transformation has taken place and that it has contributed significantly to African growth in the period 1980‐2014.
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joint with Matthias Busse and Ceren Erdogan
Kyklos, 2016, Vol. 69, No. 2, pp. 228-262 Link: doi.org/10.1111/kykl.12110 |
This paper investigates the impact of Chinese activities in sub‐Saharan African countries with respect to the growth performance of economies in that region. Using a Solow‐type growth model and panel data for the period 1991 to 2010, we find that African economies that export natural resources have benefited from positive terms‐of‐trade effects. In addition, there is evidence for displacement effects of African firms due to competition from China. On the other hand, Chinese foreign investment and aid in Africa does not appear to have a significant impact on African growth.
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joint with Peter Nunnenkamp
Applied Economics Letters, 2011, Vol. 18, No. 18, pp. 1729-1734 Link: doi.org/10.1080/13504851.2011.562149 Link to long version: Working paper (with more details) |
We analyse Foreign Direct Investment (FDI) decisions by German firms with and without affiliates in the Czech Republic at different stages of transition. We find that FDI entry strongly depends on firm productivity immediately after the political and economic regime change, but less so with diminishing uncertainty. Likewise, distance-related transaction costs discourage FDI by latecomers considerably less than FDI by early movers.
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joint with Holger Görg and Peter Nunnenkamp
Journal of Development Studies, 2010, Vol. 46, No. 8, pp. 1367-1384 Link: doi.org/10.1080/00220380903318053 |
The paper investigates the role of firm-level productivity and industry-level R&D for multinational enterprises' (MNEs') choice of undertaking foreign direct investment (FDI), and the share of ownership in foreign affiliates. Two firm-specific datasets on German MNEs with varying equity stakes in Indian affiliates are used to account for the two-step decision process. The paper also analyses how German firm decisions were affected by the liberalisation of FDI regulations in India. Results show remarkable differences between the selection and the ownership share equation, and also between the pre-reform and post-reform periods. The evidence clearly reveals the trade-offs involved in selective FDI approvals and foreign ownership restrictions.
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joint with Holger Görg and Peter Nunnenkamp
Aussenwirtschaft, 2010, Vol. 65, No. 3, pp. 273-295 Link to pdf |
In addition to firm and industry characteristics, the heterogeneity of foreign direct investment (FDI) has to be taken into account when analyzing the determinants of outward FDI. We combine two firm-specific datasets on German firms with subsidiaries and joint ventures in the Czech Republic, compared to a control group of German firms without FDI in this host country. The impact of firm and industry characteristics on FDI decisions is assessed by estimating two-step Heckman models. We find that larger, more productive and more experienced firms are more likely to invest in the Czech Republic. Firm characteristics also affect the size of FDI. However, the relevance of firm and industry characteristics differs between the manufacturing and services sectors and depends on whether FDI is horizontal or vertical.
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