Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries

This paper empirically analyzes the effects of foreign direct investment (FDI), institutional quality, and the size of a government on venture capital (VC) activity. We conclude that institutional quality, FDI, and public spending have definitive importance as elements for the development of a publi...

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Autores:
Herrera-Echeverri, Hernán
Haar, Jerry
Estevez-Bretón, Juan Benavides
Tipo de recurso:
Fecha de publicación:
2014
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/7622
Acceso en línea:
http://hdl.handle.net/10784/7622
Palabra clave:
foreign investment
venture capital funds
emerging markets
institutions
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License
restrictedAccess
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oai_identifier_str oai:repository.eafit.edu.co:10784/7622
network_acronym_str REPOEAFIT2
network_name_str Repositorio EAFIT
repository_id_str
spelling 20142015-11-06T21:15:36Z20142015-11-06T21:15:36Z1553-5304http://hdl.handle.net/10784/762210.1515/gej-2013-0068This paper empirically analyzes the effects of foreign direct investment (FDI), institutional quality, and the size of a government on venture capital (VC) activity. We conclude that institutional quality, FDI, and public spending have definitive importance as elements for the development of a public policy that increases the quantity and quality of VC fund (VCF) investment. Higher institutional quality, greater FDI, and lower public spending allow the volume of VCF investment to grow. FDI shows a higher level of significance in promoting investment in high-tech companies, and institutional quality increases the productivity of FDI investment in the generation of VCF. Government spending dramatically and (counter-intuitively) adversely affects the activities of VCF. Notably, the higher the institutional quality of a country, the less state intervention is required to promote investment of VCF. The results are consistent with the hypothesis of the FDI spillover and crowding out by public spending.engWalter de Gruyter GmbHGlobal Economy Journal. Vol. 14, (2), 2014, pp.127-162http://www.degruyter.com/view/j/gej.2014.14.issue-2/gej-2013-0068/gej-2013-0068.xmlhttp://www.degruyter.com/view/j/gej.2014.14.issue-2/gej-2013-0068/gej-2013-0068.xmlrestrictedAccessCopyright © 2011–2015 by Walter de Gruyter GmbHAcceso restringidohttp://purl.org/coar/access_right/c_16ecGlobal Economy Journal. Vol. 14, (2), 2014, pp.127-162Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countriesarticleinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArtículopublishedVersionObra publicadahttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_6501http://purl.org/coar/resource_type/c_2df8fbb1foreign investmentventure capital fundsemerging marketsinstitutionsEconomía y FinanzasFinanzasHerrera-Echeverri, HernánHaar, JerryEstevez-Bretón, Juan BenavidesDepartment of Finance, Economics and Finance School, EAFIT University, Carrera 49 No 7 Sur – 50, Medellin, Antioquia, ColombiaDepartment of Management and International Business, College of Business, Florida International University, 11200 SW 8th Street, RB 309, Miami, FL 33199, USAInterdisciplinary Center for the Study of Development, Los Andes University Calle 18A No. 0-03 Este, Bogotá, ColombiaGrupo de Investigación Finanzas y BancaGlobal Economy Journal14212716210784/7622oai:repository.eafit.edu.co:10784/76222015-11-06 16:15:36.825metadata.onlyhttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.co
dc.title.eng.fl_str_mv Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
title Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
spellingShingle Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
foreign investment
venture capital funds
emerging markets
institutions
title_short Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
title_full Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
title_fullStr Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
title_full_unstemmed Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
title_sort Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries
dc.creator.fl_str_mv Herrera-Echeverri, Hernán
Haar, Jerry
Estevez-Bretón, Juan Benavides
dc.contributor.department.spa.fl_str_mv Economía y Finanzas
Finanzas
dc.contributor.author.spa.fl_str_mv Herrera-Echeverri, Hernán
Haar, Jerry
Estevez-Bretón, Juan Benavides
dc.contributor.affiliation.spa.fl_str_mv Department of Finance, Economics and Finance School, EAFIT University, Carrera 49 No 7 Sur – 50, Medellin, Antioquia, Colombia
Department of Management and International Business, College of Business, Florida International University, 11200 SW 8th Street, RB 309, Miami, FL 33199, USA
Interdisciplinary Center for the Study of Development, Los Andes University Calle 18A No. 0-03 Este, Bogotá, Colombia
dc.contributor.program.spa.fl_str_mv Grupo de Investigación Finanzas y Banca
dc.subject.keyword.eng.fl_str_mv foreign investment
venture capital funds
emerging markets
institutions
topic foreign investment
venture capital funds
emerging markets
institutions
description This paper empirically analyzes the effects of foreign direct investment (FDI), institutional quality, and the size of a government on venture capital (VC) activity. We conclude that institutional quality, FDI, and public spending have definitive importance as elements for the development of a public policy that increases the quantity and quality of VC fund (VCF) investment. Higher institutional quality, greater FDI, and lower public spending allow the volume of VCF investment to grow. FDI shows a higher level of significance in promoting investment in high-tech companies, and institutional quality increases the productivity of FDI investment in the generation of VCF. Government spending dramatically and (counter-intuitively) adversely affects the activities of VCF. Notably, the higher the institutional quality of a country, the less state intervention is required to promote investment of VCF. The results are consistent with the hypothesis of the FDI spillover and crowding out by public spending.
publishDate 2014
dc.date.issued.none.fl_str_mv 2014
dc.date.available.none.fl_str_mv 2015-11-06T21:15:36Z
dc.date.accessioned.none.fl_str_mv 2015-11-06T21:15:36Z
dc.date.none.fl_str_mv 2014
dc.type.eng.fl_str_mv article
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_6501
http://purl.org/coar/resource_type/c_2df8fbb1
dc.type.local.spa.fl_str_mv Artículo
dc.type.hasVersion.eng.fl_str_mv publishedVersion
dc.type.hasVersion.spa.fl_str_mv Obra publicada
status_str publishedVersion
dc.identifier.issn.none.fl_str_mv 1553-5304
dc.identifier.uri.none.fl_str_mv http://hdl.handle.net/10784/7622
dc.identifier.doi.none.fl_str_mv 10.1515/gej-2013-0068
identifier_str_mv 1553-5304
10.1515/gej-2013-0068
url http://hdl.handle.net/10784/7622
dc.language.iso.eng.fl_str_mv eng
language eng
dc.relation.ispartof.spa.fl_str_mv Global Economy Journal. Vol. 14, (2), 2014, pp.127-162
dc.relation.isversionof.none.fl_str_mv http://www.degruyter.com/view/j/gej.2014.14.issue-2/gej-2013-0068/gej-2013-0068.xml
dc.relation.uri.none.fl_str_mv http://www.degruyter.com/view/j/gej.2014.14.issue-2/gej-2013-0068/gej-2013-0068.xml
dc.rights.eng.fl_str_mv restrictedAccess
dc.rights.spa.fl_str_mv Copyright © 2011–2015 by Walter de Gruyter GmbH
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_16ec
dc.rights.local.spa.fl_str_mv Acceso restringido
rights_invalid_str_mv restrictedAccess
Copyright © 2011–2015 by Walter de Gruyter GmbH
Acceso restringido
http://purl.org/coar/access_right/c_16ec
dc.publisher.eng.fl_str_mv Walter de Gruyter GmbH
dc.source.spa.fl_str_mv Global Economy Journal. Vol. 14, (2), 2014, pp.127-162
institution Universidad EAFIT
repository.name.fl_str_mv Repositorio Institucional Universidad EAFIT
repository.mail.fl_str_mv repositorio@eafit.edu.co
_version_ 1814110260215939072

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