Type of Document Master's Thesis Author Burke, Robert Vincent URN etd-07242012-040013 Title Effects of the foreign direct investments program on the U. S. balance of payments. Degree Master of Arts Department Economics Advisory Committee
Advisor Name Title Schmidt, Wilson E. Committee Chair Brown, Norman L. Committee Member Meiselman, David I. Committee Member Keywords
Date of Defense 1974-08-05 Availability restricted AbstractThis study evaluates the effect of the Foreign Direct Investment
Program on the U.S. balance of payments. It fits several simple models
to cross-section data reported to the Office of Foreign Direct Investments
by U.S. multinational firms. With these, estimates of earnings
and exports associated with direct investments were made. The reduction
in the level of direct investment itself was estimated, using a
flexible accelerator model. Finally, the amount of foreign borrowing
and associated interest payments induced by the Program were calculated.
It appears that the Program produced a reduction of about $1 billion in each of its first two years. The reduction in subsequent
years was substantially less. The internal rate of discount, a key
summary measure of the effect of controls, is discussed. Evidence is
presented showing that the internal rate of discount associated with
reductions in investment is quite high, suggesting that the Program
was an inferior policy choice to the extent that it reduced investment
The internal rate of discount associated with foreign borrowing was substantially less. To the extent that the Program induced foreign borrowing, it appears neither clearly better nor clearly worse than policy alternatives.
Filename Size Approximate Download Time (Hours:Minutes:Seconds)
28.8 Modem 56K Modem ISDN (64 Kb) ISDN (128 Kb) Higher-speed Access LD5655.V855_1974.B85.pdf 4.06 Mb 00:18:47 00:09:39 00:08:27 00:04:13 00:00:21
If you have questions or technical problems, please Contact DLA.