Nadine McCloud

• PhD Economics, MA Economics, MPhil Mathematics, BSc Mathematics
• Senior Lecturer at University of the West Indies

See Share Link https://authors.elsevier.com/a/1jXGI3mS%7E2drdV

In theory, changes in a host country exchange rate can be a cause or consequence of changes in its level of foreign direct investment (FDI), and recent incidences suggest that government stability may have sizable implications for the interactions between FDI and the exchange rate. This paper uses a semiparametric system of simultaneous equations t...

The literature highlights that inflation targeting (IT) economies enjoy a sizeable share of global trade, suggesting IT is a comparative advantage exclusive to such countries. Using a set of developed and developing countries—coupled with synthetic control methods—we estimate the causal effect of IT on the volume of international trade. We compare...

Some countries have adopted an Inflation Targeting (IT) regime to reduce inflation and inflation uncertainty: two factors the literature suggests firms put positive weight on when making outlay decisions that may affect aggregate domestic investment. This observation naturally leads to the question of whether domestic investment responds to IT. We...

It has been argued that foreign direct investment can exert upward or downward pressure on the domestic interest rate depending on foreign investors’ relative weights on internal and external finance with respect to the domestic economy. Additionally, a country’s level of corruption can influence firms’ ability to obtain external finance. We find t...

The matrix that transforms the response variable in a regression to its predicted value is commonly referred to as the hat matrix. The trace of the hat matrix is a standard metric for calculating degrees of freedom. The two prominent theoretical frameworks for studying hat matrices to calculate degrees of freedom in local polynomial regressions – A...

The hat matrix maps the vector of response values in a regression to its predicted counterpart. The trace of this hat matrix is the workhorse for calculating the effective number of parameters and the degrees of freedom in both parametric and nonparametric regression settings. The nonparametric literature is, however, silent on the number of parame...

The flow of foreign direct investment (FDI) has increased the challenges governments face in carrying out their fiscal responsibilities. A country's system of law and order enables or constrains the implementation of government policies, and consequently influences whether the size of government responds to changes in FDI inflows and outflows. We t...

The matrix that transforms the response variable in a regression to its predicted value is commonly referred to as the hat matrix. The trace of the hat matrix is a standard metric for calculating degrees of freedom. Nonparametric-based hat matrices do not enjoy all properties of their parametric counterpart in part owing to the fact that the forme...

We investigate heterogeneity between foreign direct investment (FDI) and domestic investment induced by corruption and human capital. Controlling for corruption and human capital, inbound FDI has significant, heterogeneous complementarity effects on domestic investment; the effect of outbound FDI on domestic investment is fluid: substitution and co...

We characterize the types of interactions between foreign direct investment (FDI) and economic growth, and analyze the effect of institutional quality on such interactions. To do this analysis, we develop a class of instrument-based semiparametric system of simultaneous equations estimators for panel data and prove that our estimators are consisten...

Who really wins from foreign direct investment (FDI) and by how much? Should winners care about corruption? Building on evidence of heterogeneity in the FDI-growth relationship, we propose a semiparametric model that allows corruption to influence the relationship between the conditioning variables and GDP growth, parameter heterogeneity of unknown...

We introduce a class of generally applicable specification tests for constant and dynamic structures of conditional correlations in multivariate GARCH models. The tests are robust to the presence of time-varying higher-order conditional moments of unknown form and are pure significance tests. The tests can identify linear and nonlinear misspecifica...

  We investigate empirically the existence of a heterogeneous relationship between foreign direct investment (FDI) and economic growth across developing countries. We argue that, across countries, differences in institutional quality are correlated with heterogeneous absorptive capacities and hence a heterogeneous FDI–growth relationship. Our empir...

One of the foremost objectives of the Common Agricultural Policy (CAP) in the European Union (EU) is to increase agricultural productivity. However, little empirical research has been done to examine the effects of subsidy on farm performance and, in particular, the channels through which subsidy affects productivity. Using a Bayesian hierarchical...

We survey the current state of the art in the use of nonparametric methods to test separability. We focus on three tests: Swofford and Whitney's (1994) joint test of the necessary and sufficient conditions for weak separability; Fleissig and Whitney's (2003) sequential test of those conditions; and Jones and Stracca's (2006) test of the necessary a...

Given m × n matrices A = [ajk ] and B = [bjk ], their Schur product is the m × n matrix A ○ B = [ajkbjk ]. For any matrix T, define ‖T‖S = maxX ≠O ‖T ○ X ‖/‖X ‖ (where ‖·‖ denotes the usual matrix norm). For any complex (2n – 1)-tuple μ = (μ–n +1, μ–n +2, …, μn –1), let Tμ be the Hankel matrix [μ –n +j +k –1]j,k and define μ = {f ∈ L1[–π, π] : f̂ (...