Foreign Direct Investment and economic transition: Panacea or pain killer?

This article sets out to make an assessment of the relationship between Foreign Direct Investment (FDI) and economic growth in transition countries through a review of the empirical record to date. The first part reviews the phases of transition in combination with policy efforts to attract FDI. In the second part, different growth studies across levels of analysis are juxtaposed to better understand the overall growth impact of FDI in transition countries. Since foreign firms have a large direct effect on performance at the level of the firm it is often assumed that they automatically contribute to the economic growth of host countries. The missing link in this discussion is the concept of ‘trickle down’. Superior direct effects in terms of productivity and profitability are hypothesised to trickle down to the host country both as spillovers, or catalysing effects on local firms, and through the expected increase in income that such direct and indirect effects in combination will generate through labour income and taxes. The review shows that such trickle down effects are quite fragile in terms of being demonstrated to exist in transition countries. Combined with widespread usage of tax holidays, subsidies and acquisition discounts, it is not certain that positive direct effects equate with economic growth in these countries.     

Fiscal Federalism and International Capital: The Effects of Fiscal Federalism on Foreign Direct Investment and Sovereign Dept Ratings

Although the study of federalism has become one of the most intensely studied areas in economics and political science, no consensus has emerged on the impact of fiscal federalism on macroeconomic performance. I focus on one specific element of the debate‐ the role of fiscally federal institutions in allowing a country access to international capital markets. In an empirical analysis of 60 countries from 1975‐1995 I find fiscal federalism has no clear impact on inflows of foreign direct investment. In an examination of the impact of federalism on sovereign debt ratings for 40 countries from 1980‐1998, I find that fiscal federalism is associated with lower levels of sovereign debt risk.     

Ten costly mistakes in disciplining disruptive students

Disciplining disruptive students is necessary to maintain order and proper decorum in public schools. School officials must, however, be certain that they do not violate the rights of students as they strive to achieve order in schools. They must also refrain from exhibiting overly aggressive behavior if the situation does not warrant it. School officials must respond to disciplinary infractions in a reasonable and defensible manner. This will usually occur when they follow legally defensible school or district policy and ensure that the due process rights of students are protected. Violation of student rights in the absence of defensible reason may result in legal charges against school officials.     

Consumerism and the new poor

He is author of Applied Mathematical Demography; Population Change and Social Policy;and co-author (with Wilhelm Flieger) of World Populations: An Analysis of Vital Data.