Transparency, Specialization and FDI (new title: Corporate Transparency, Cream-Skimming and FDI)
We develop a simple information-based model of FDI flows. On the one hand, the relative abundance of “intangible" capital in specialized industries in the source countries, which presumably generates expertise in screening investment projects in the host countries, enhances FDI flows. On the other hand, host-country relative corporate-transparency diminishes the value of this expertise, thereby reducing the flow of FDI. The model also demonstrates that the gains for the host country from foreign direct investment [over foreign portfolio investment (FPI)] are reflected in a more efficient size of the stock of domestic capital and its allocation across firms. These gains are shown to depend crucially (and positively) on the degree of competition among FDI investors.
|Date of creation:||2004|
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- Assaf Razin & Yona Rubinstein & Efraim Sadka, 2003.
"Which Countries Export FDI, and How Much?,"
NBER Working Papers
10145, National Bureau of Economic Research, Inc.
- Assaf Razin & Yona Rubinstein & Efraim Sadka, 2004. "Which Countries Export FDI and How Much?," Working Papers 152004, Hong Kong Institute for Monetary Research.
- Efraim Sadka & Assaf Razin & Yona Rubinstein, 2004. "Which Countries Export FDI, and How Much?," 2004 Meeting Papers 226, Society for Economic Dynamics.
- Razin, Assaf & Rubinstein, Yona & Sadka, Efraim, 2004. "Which Countries Export FDI, and How Much?," CEPR Discussion Papers 4204, C.E.P.R. Discussion Papers.
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- Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," NBER Working Papers 6030, National Bureau of Economic Research, Inc.
- Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," William Davidson Institute Working Papers Series 63, William Davidson Institute at the University of Michigan.
- Djankov, Simeon & Hoekman, Bernard M, 2000. "Foreign Investment and Productivity Growth in Czech Enterprises," World Bank Economic Review, World Bank Group, vol. 14(1), pages 49-64, January.
- Djankov, Simeon & Hoekman, Bernard, 1999. "Foreign investment and productivity growth in Czech enterprises," Policy Research Working Paper Series 2115, The World Bank.
- Assaf Razin, 2002. "FDI Contribution to Capital Flows and Investment in Capacity," NBER Working Papers 9204, National Bureau of Economic Research, Inc.
- Assaf Razin, 2003. "FDI Contribution to Capital Flows and Investment in Capacity," Working Papers 052003, Hong Kong Institute for Monetary Research.
- Gopinath, Gita, 2004. "Lending booms, sharp reversals and real exchange rate dynamics," Journal of International Economics, Elsevier, vol. 62(1), pages 1-23, January.
- Assaf Razin & Ashoka Mody & Efraim Sadka, 2003. "The Role of Information in Driving FDI Flows; Host-Country Transparency and Source-Country Specialization," IMF Working Papers 03/148, International Monetary Fund.
- Ashoka Mody & Assaf Razin & Efraim Sadka, 2003. "The Role of Information in Driving FDI Flows: Host-Country Tranparency and Source Country Specialization," NBER Working Papers 9662, National Bureau of Economic Research, Inc.
- Albuquerque, Rui, 2003. "The composition of international capital flows: risk sharing through foreign direct investment," Journal of International Economics, Elsevier, vol. 61(2), pages 353-383, December.
- Rui Albuquerque, 2004. "The Composition of International Capital Flows: Risk Sharing Through Foreign Direct Investment," International Finance 0405004, EconWPA.
- Rachel Griffith & Helen Simpson, 2004. "Characteristics of Foreign-Owned Firms in British Manufacturing," NBER Chapters,in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 147-180 National Bureau of Economic Research, Inc.
- Rachel Griffith & Helen Simpson, 2001. "Characteristics of foreign-owned firms in British manufacturing," IFS Working Papers W01/10, Institute for Fiscal Studies.
- Rachel Griffith & Helen Simpson, 2003. "Characteristics of Foreign-Owned Firms in British Manufacturing," NBER Working Papers 9573, National Bureau of Economic Research, Inc.
- Productivity Commission, 2002. "Offshore investment by Australian firms: survey evidence," International Trade 0203001, EconWPA.
- Barry P. Bosworth & Susan M. Collins, 1999. "Capital Flows to Developing Economies: Implications for Saving and Investment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 30(1), pages 143-180. Full references (including those not matched with items on IDEAS)
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