Razin, Asaf; Tsadḳah, Efrayim - 2004
We develop a simple information-based model of FDI flows. On the one hand, the relative abundance of intangible capital … 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 …