Gains from FDI inflows with incomplete information
Abstract
The paper develops an international macroeconomic model of FDI flows with a unique feature: a hands-on management ability to react in real time to changing economic environments. Anticipating this advantage, foreign direct investors can outbid other investors in a certain industry in which they specialize in the source country. The model can explain both two-way FDI flows among developed countries and one-way FDI flows from developed to developing country. The unique gains from FDI to the host country stem from the increased eciency of domestic investment.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Elsevier in its journal Economics Letters.
Volume (Year): 78 (2003)
Issue (Month): 1 (January)
Pages: 71-77
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Related research
Keywords:Other versions of this item:
- Assaf Razin & Efraim Sadka, 2002. "Gains from FDI Inflows with Incomplete Information," NBER Working Papers 9008, National Bureau of Economic Research, Inc.
- F2 - International Economics - - International Factor Movements and International Business
- F3 - International Economics - - International Finance
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Assaf Razin & Ashoka Mody & Efraim Sadka, 2002.
"The Role of Information in Driving FDI: Theory and Evidence,"
NBER Working Papers
9255, National Bureau of Economic Research, Inc.
- Mody, Ashoka & Razin, Assaf & Sadka, Efraim, 2002. "The Role of Information in Driving FDI: Theory and Evidence," CEPR Discussion Papers 3619, C.E.P.R. Discussion Papers.
- Koralai Kirabaeva & Assaf Razin, 2009.
"Composition of International Capital Flows: A Survey,"
NBER Working Papers
15599, National Bureau of Economic Research, Inc.
- Koralai Kirabaeva & Assaf Razin, 2010. "Composition of International Capital Flows: A Survey," Working Papers 10-33, Bank of Canada.
- Kirabaeva, Korolai & Razin, Assaf, 2010. "Composition of International Capital Flows: A Survey," CEPR Discussion Papers 7664, C.E.P.R. Discussion Papers.
- Koralai Kirabaeva & Assaf Razin, 2011. "Composition of International Capital Flows: A Survey," Working Papers 142011, Hong Kong Institute for Monetary Research.
- Michael Dooley & David Folkerts-Landau & Peter Garber, 2005.
"Direct investment, rising real wages and the absorption of excess labor in the periphery,"
Proceedings,
Federal Reserve Bank of San Francisco, issue Feb.
- Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2007. "Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery," NBER Chapters, in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 103-132 National Bureau of Economic Research, Inc.
- Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery," NBER Working Papers 10626, National Bureau of Economic Research, Inc.
- Goldstein, Itay & Razin, Assaf, 2003.
"An Information-Based Trade-off Between Foreign Direct Investment and Foreign Portfolio Investment: Volatility, Transparency and Welfare,"
CEPR Discussion Papers
3747, C.E.P.R. Discussion Papers.
- Itay Goldstein & Assaf Razin, 2003. "An Information-Based Trade Off Between Foreign Direct Investment and Foreign Portfolio Investment: Volatility, Transparency, and Welfare," NBER Working Papers 9426, National Bureau of Economic Research, Inc.
- Hasanat Shah, Syed & He, Bin & Li, Junjiang, 2011. "The Causality and Economic Impact of FDI inflows from Trade Partners in Pakistan," MPRA Paper 35645, University Library of Munich, Germany.
- Itay Goldstein & Assaf Razin, 2005.
"An Information-Based Trade Off between Foreign Direct Investment and Foreign Portfolio Investment,"
NBER Working Papers
11757, National Bureau of Economic Research, Inc.
- Goldstein, Itay & Razin, Assaf, 2006. "An information-based trade off between foreign direct investment and foreign portfolio investment," Journal of International Economics, Elsevier, vol. 70(1), pages 271-295, September.
- Itay Goldstein & Assaf Razin, 2005. "Foreign Direct Investment vs. Foreiegn Portfolio Investment," NBER Working Papers 11047, National Bureau of Economic Research, Inc.
- Razin, Assaf & Sadka, Efraim, 2007. "Corporate transparency, cream-skimming and FDI," European Economic Review, Elsevier, vol. 51(5), pages 1263-1276, July.
- Assaf Razin, 2003.
"FDI Contribution to Capital Flows and Investment in Capacity,"
Working Papers
052003, Hong Kong Institute for Monetary Research.
- Assaf Razin, 2002. "FDI Contribution to Capital Flows and Investment in Capacity," NBER Working Papers 9204, National Bureau of Economic Research, Inc.
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