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1. FDI Spillover Effects: Evidence from the Philippines

Author:
Rafaelita Aldaba and Angel Derrickvhel Quejada
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using firm-level data in manufacturing, this chapter examines the impact of foreign direct investment (FDI) spillover effects on domestic firm performance. Through knowledge spillovers, FDI inflows affect the performance of domestic firms. Overall, there is some evidence to show that horizontal and forward spillovers from FDI have a significant positive impact on the performance of domestic firms. However, in terms of backward spillovers, the impact of FDI on the performance of domestic firms is negative and significant. The diffusion of backward spillover effects to domestic firms has remained limited due to the weak competitiveness of domestic firms and their inability to absorb the technology or knowledge being transferred. To strengthen the absorptive capacity and productivity of domestic firms, the chapter suggests a more comprehensive approach that would combine industrial policy to improve and develop domestic parts and supplier firms with measures to create an environment conducive to the creation and expansion of FDI backward spillovers. These include upgrading industry participation towards higher segments of global value chains, innovation, human resource development, upskilling and reskilling the workforce, and liberalising ecozone regulations affecting the transactions between multinational corporations and companies outside the economic zones.
Topic:
Economics, International Trade and Finance, Foreign Direct Investment, and Investment
Political Geography:
Philippines and Oceania

2. Global Challenges, Progressive Solutions

Author:
Andrew Little
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Center for American Progress - CAP
Abstract:
A few years ago, a Labour government in New Zealand introduced a series of payments to families on modest incomes. The payments increased with the number of children in the family. The policy was based on the radical ideas that kids need food and clothing to learn and thrive; it’s not a child’s fault if she is born into a family of modest means; and the entire community benefits when its young are doing well. The disgust among our opponents was visceral. They railed against the payments. One of their members of parliament, now New Zealand’s prime minister, derided the policy as “communism by stealth.” Now New Zealand has a conservative government in its third term, but the payments haven’t been touched. Families are still receiving the money, more of it if they have more dependent children. Yet again a major social initiative, introduced by a progressive government against a tirade of conservative abuse, has become part of the political furniture. Untouchable. Sacrosanct. For progressives, that’s what victory looks like. Even when we’re out of office, our ideas remain dominant, our policies in force. Our influence on the future far outlasts our ministerial warrants.
Topic:
Climate Change, Economics, Environment, Science and Technology, and Progressivism
Political Geography:
New Zealand and Oceania

3. Toward a More Efficient Taxation System in New Zealand

Author:
Annabelle Mourougane
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
After the radical reforms undertaken in the 1980s, the NZ tax system has long been regarded as one of most efficient within the OECD, and is based on a comprehensive income approach. Looking forward, the country will require a tax regime that helps the economy to continue raising living standards, supports savings and investment and copes with emerging pressures such as increasing geographic mobility of labour and capital. In this context, it will be important to have in place a clear long-term direction for the tax system to guide reforms. There are at least two broad options that are worth considering: adapting the system within a comprehensive income approach or adopting a dual income tax system. Future changes to the tax system need to be consistent with the approach ultimately adopted. In any case, a number of limitations of current tax bases will need to be tackled.
Topic:
Economics, Tax Systems, Collaborative Efficiency, and Investment
Political Geography:
New Zealand and Oceania