Regional Science Inquiry

Cristiano CECHELLA University of Azores ccechella2004@yahoo.it

Gustavo H. B. FRANCO Pontifical University of Rio de Janeiro

Joaquim RAMOS SILVA Technical University of Lisbon

Tomaz DENTINHO University of Azores

Abstract

The hypothesis that inward and outward FDI positions of a country are related to the level and structure of economic development in relation to other economies, was first showed by Dunning (1979. The IDP suggests that countries tend to pass through five main development stages and that these phases can be classified according to the propensity of countries to host and/or invest abroad. This article attempts to measure the position of Brazil in the IDP. The investment by Brazilian firms abroad, in relation to emerging countries, was the first until 90s. However, Brazil’s outward FDI increased substantially from 2000. In 2006 the Outward FDI exceeded inward FDI for the first time in the history of the country. Nowadays, the Brazilian economy seems to be in phase 2 and give signs of entry to stage 3, and some signs of evolution to phases 4 and 5. This paper intends to measure de Brazilian economy position on IDP especially between emerging countries context and the importance of a new stage of Brazilian economy: the systematic internationalization of domestic firms. This paper has the following structure: an evolution of FDI in recent years; after that we explain the phases of Investment Developmet Path Theory and measure de Brazilian economy position on IDP. Finally, the final considerations are related.

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Yuzuru MIYATA

Graduate School of Architecture and Civil Engineering, Toyohashi University of Technology,

Tempaku 1-1, Toyohashi, 441-8580, Aichi, Japan,
miyata@ace.tut.ac.jp

Abstract

Among others Beckmann (1952) firstly introduced the concept of a two dimensional continuous space into economics. This great step had unfortunately not shown further expansion in economics. Through several papers related to Beckmann’s initiation, Beckmann and Puu (1985) at last reached a systematic treatment of the continuous spatial economics. Although their achievement is fascinated by employing a partial differential equations approach, Beckmann’s original philosophy, that is, the gradient law has still been inherited. Beckmann and Puu’s book (1985) aims to study formation of urban configuration in a two dimensional continuous space, focusing on flows of commodities. However, consideration of households and firms location is not necessarily sufficient, resulting in reconsideration from a new urban economics point of view. Differing from Beckmann and Puu’s studies, Miyata (2010) introduces bid rent functions (Fujita (1989)), which are familiar in the new urban economics, for land of households and firms, and then he studies how the results of Beckmann and Puu are rigorously modified by using the theory of partial differential equations. However Miyata (2010) deals with a symmetric equilibrium which seems to be a little unrealistic. This article extends the author’s previous study introducing spatial characteristic vector field in the model which stands for heterogeneity in geographical conditions in a city, and try to show asymmetry in land use pattern and endogenous formation of transportation networks in a two dimensional continuous space.

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