In the latest 30 years, Costa Rica's real GDP per capita has more than doubled, driven by increasing labour utilisation. Labour productivity has instead stagnated at around 30% of the more advanced OECD countries. Productivity growth has been lacklustre despite the opening up of markets to...

This study seeks to provide evidence on the dynamic interactions among foreign direct investment (FDI), private domestic investment and public domestic investment in Turkey for the period 1970-2009 using a multivariate VAR framework. Our findings indicate that there is no long-run relationship...

One of the aims of the internationally funded Investment Compact of the Balkan Stability Pact is to reduce investment risk in the region and lay the foundations for the inflow of private capital. This paper discusses the situation of foreign direct investment (FDI) in South-East European...

Recent developments have revealed that (i) advanced transition countries have received most of the FDI to date, especially greenfield projects; (ii) more countries than in the mid?1990s are resorting to FDI in order to accelerate privatization (Czech Republic, Poland and Slovakia); and (iii)...

This paper follows the definition of international competitiveness of countries (nations) as defined by Trabold (1995) including the ability to sell, the ability to attract FDI and the ability to adjust - all these leading to the ability to earn. These components can be measured by specific...

We explore entry into a foreign market with uncertain demand growth. A multinational can serve the foreign demand in two ways, or by a combination thereof: it can export its product, or it can create productive capacity via Foreign Direct Investment. The advantage of FDI is that it allows lower...

Using a panel dataset containing information on FDI flows from market to transition economies, we establish the determinants of FDI inflows to Central and Eastern Europe: country risk, unit labour costs, host market size and gravity factors. In turn, we find country risk to be influenced by...

The standard argument says that in the presence of positive spillovers foreign direct investment should be promoted and subsidized. In contrast, this Paper claims that the very existence of such spillovers may require temporarily restricting and taxing inward FDI. Our argument in favour of...

Firms choose either cross-border M&A or greenfield foreign direct investment (FDI) when expanding their operations overseas. In this study, by focusing on Japanese firms pursuing FDI in emerging countries in Asia and Oceania, we provide empirical evidence of the similarities and differences in...

According to the pollution haven effect mobile capital responds to environmental regulation by moving from countries with high regulation to countries with low regulation. Previous tests of the pollution haven effect focus on host country regulation effect. This study also examines the effect of...