Determinants of Profit Repatriation : Evidence from the Czech Republic and OECD Countries

The paper examines the determinants of FDI profit repatriation in the Czech Republic and OECD countries as a group from 2013 to 2019. By applying the Lintner model about repatriation decisions at the national level, the paper finds the following findings. Firstly, the repatriation rate in the Czech Republic is higher than in most OECD countries. Secondly, financial development, investment opportunity, the appreciation of host countries' currency, and higher effective rates negatively affect the payout ratio of OECD countries as a group. However, in the case of the Czech Republic, only two factors that encourage repatriation are financial development and corruption enforcement