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    Daniel Lederman

    The North American Free Trade Agreement (NAFTA) was formally implemented on 1 January 1994 by the United States, Canada, and Mexico. This treaty instantly gained global notoriety following the initiation of formal negotiations in 1991,... more
    The North American Free Trade Agreement (NAFTA) was formally implemented on 1 January 1994 by the United States, Canada, and Mexico. This treaty instantly gained global notoriety following the initiation of formal negotiations in 1991, not only because the initiative ...
    ABSTRACT No abstract available.
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    bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Produced by the Research Support Team
    The economic success of China and India is looked upon with admiration but also concern about the effects that the growth of these Asian economies may have on the Latin American and Caribbean (LAC) region’s manufacturing and services... more
    The economic success of China and India is looked upon with admiration but also concern about the effects that the growth of these Asian economies may have on the Latin American and Caribbean (LAC) region’s manufacturing and services sectors. The evidence summarized here indicates that certain manufacturing and service industries in some countries, particularly in Mexico and to a lesser extent in Central America and the Caribbean, have been negatively affected by Chinese and Indian competition in third markets. Also, LAC imports from China and India have been associated with modest unemployment and adjustment costs in manufacturing industries. Nevertheless, there is substantial evidence of positive aggregate effects for LAC economies associated with China and India’s greater presence in world exports, financial flows, and innovation. Even though there is significant heterogeneity of such effects across LAC sub-regions, China and India’s growth is creating new production possibilitie...
    Research Interests:
    This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the Knowledge-Capital Model of multinational enterprises to... more
    This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the Knowledge-Capital Model of multinational enterprises to control for fundamental determinants of FCS across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' FCS has been positive. This finding is robust across different specifications and estimation techniques. There is surprisingly weak evidence of substitution in manufacturing FCS away from Central America/Mexico in favor of China, and from Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques. In sum, fears of a global competition for FDI seem misplaced, and policymakers concerned about attracting foreign investors should focus their efforts on the fundamentals determinants of FDI.• JEL Classification: F21, F22, O57

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