Canadian Journal Of Economics/Revue Canadienne D’économique

Empirical studies of bilateral foreign immediate investment (FDI) activity show significant differences in specifications with little contract on the set of included covariates. We use Bayesian statistical techniques that allow someone to select from a large set of applicants those variables most likely to be determinants of FDI activity. The variables with consistently high inclusion probabilities include traditional gravity variables, social distance factors, comparative labour trade and endowments contracts. There is little support for multilateral trade openness, most host‐country business costs, host‐country infrastructure and host‐country institutions. Our results claim that many covariates found significant by earlier studies are not robust.

Otherwise, they wouldn’t experienced the foresight to give us the various tools we have to fix such problems. And the various tools are experienced by us. Which begs the question: why don’t we utilize them and understand this done? It won’t be easy. But, what about America ever has been easy?

LHWritings – Thanks for such thoughtful feedback. Thanks for taking the time to contribute. What earthly difference would it make who we owe the money to? Have you not watched the TV ads or paid attention to the extremist-right politicians? They’ve been trying to get people to think that China now “dominates” the USA because it supposedly holds most of America’s federal debts. Pure garbage – as Kathleen Cochran highlights (with actual figures), “we are mainly with debt to ourselves.” That alone should give anyone pause before considering the propaganda of the Tea Party and GOP even.

And yes, debt is debt still. But it’s backed by the “full faith and credit” of the U.S. This “full beliefs and credit” in turn relies on the essential potential power of the U.S. And while that economy proceeded to go splat starting about 2007-2008, it does be capable of recover to a spot where tax profits could be sufficient to “dig out of the hole” of debt burden. However, the Tea Party and GOP appear prepared to do everything they can to ensure it doesn’t happen. They apparently want Washington to default on agreements and debt obligations (remember last summer months?

They’re doing all they can to reduce commercial and high-income fees, thus reducing earnings such that it becomes a lot more difficult to lower the debt weight. As Europe is starting to realize, austerity has failed there. Yet the Teapot GOP is crusading to entrench this utterly failed and disastrous policy within the USA. Worried that the USA’s crisis might start looking like Greece’s?

If the Tea Party and GOP have their way, that headache could become reality. I have never written a hub before that led to me learning a lot! Thanks for the info and taking the time to provide it. You cerntainly don´t have to feel bad about a house mortgage, just because a house is a low depreciation asset, something to depend on for future years.

However a few of the housing bubble was credited to overloading home loans for consumptive means. You could ask why it was so important to overload home loan. Answers (IMHO): Money too cheap (it is ridiculous how low rates of interest are), productivity and living specifications don´t match any longer in america. So for a complete decade it were smart to close the gap between living standards and creation of real wealth (productivity) through extended home borrowing (via home loan overload). People who say that equity lost value in recent times overlook that it is always the same house, the same asset in the same location that was evaluated.

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So all what happened was a reset to real conditions, speculative value was stripped off. In my earlier comment i suggested that debt within an economy has to be treated as a mixture of household, private and corporate debt. Out of this perspective the recent “quantitive easing” actions were nothing else but transfering household debt (the subprime stuff) and corporate debt (the GM deal) to public debt. That doesn´t change something in the entire condition of the overall economy. THE WORST PART OF HAVING A MORTGAGE.

YOU LOST AT LEAST 25% FROM THE EQUITY in your investment BECAUSE OF THE IDIOTS IN WASHINGTON. Chris57: You make a good illustration. I don’t feel guilty for my mortgage, which is much bigger than my credit cards bill. I have a home to show for my mortgage. What do I have to show for my credit card bill but consumables I’m going to have to buy again pretty soon.

These are interesting responses. You’ve told another aspect of the situation I hadn’t considered. In answer your last question: I don’t know. It doesn´t make too much sense to handle debt only. On the balance sheet there are assets also. Who cares in an financial entity what kind of debt there is? Let me make an effort to define the wealth of the economy. No matter how high general public or corporate or home debt accumulate, people are residing in homes (not caves) are well sheltered, there are successful factories (not firestone tools or open open fire foundries).