International Investment in Us Insurance Industry

Abstract The purpose of this paper is to analyse and measure which factors that are the determinants of FDI in insurance services in the US over the plosive consonant from 1987 to 1998 using OLS regressions. The results foretell that the coition wage between the US and the source countries and the variable of manufacturing in the US are the major(ip) determinants of FDI in insurance services in the US. Furthermore, the empirical results indicate that the higher the wage rate in the US relative to the source countries, the lower the FDI in insurance services in the US. It also indicates that FDI in insurance services is positively abnormal by the contribution of manufacturing expansion. Hence, the higher step-up rate in FDI in manufacturing sectors in the US, the higher the expansion rate in FDI in insurance services in the US and the descent between the US and the source countries is become more important. 1. Introduction The integration of the global economy has strengthened the international integration of goods, technology, push and capital. This process of cross-border restrictions eliminations on international capital flows has increased the growth of foreign impart investment (FDI) activity.

Many countries make either effort to attract FDI because it will bring a strong growth to their economy, in addition to its function as the genius vehicle of international capital movement. There is a astray shared view that FDI accele rank host countries¡¦ growth by augmenting internal savings and investment, helping transfer of technology from the¡¨leaders¡¨, change magnitude competition in the host country¡¦s domestic market, increasing exports, earning foreign exchange and imparting several another(prenominal) types of positive externalities to the economy at large. Corresponding to the above, since early 1980s, gibe to the World Investment Report (United Nations, 1994), worldwide flows of foreign direct investment have grown at unprecedented rates to reach a total outflow... If you want to get a full essay, order it on our website: Ordercustompaper.com

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