The real value of the U.S. dollar and the level of U.S. foreign direct investment (FDI) have shown a strong correlation … wealth effect explanation of FDI. …

¯rm is owned by foreign investors, a credit-constrained country who wants to send pro¯ts abroad has to generate enough …

lower expropriation and transfer risks. Democracy, on the other hand, greatly reduces expropriation risk but has no impact …

. Product-market regulation and FDI restrictions have been lowered. The process of deregulation proceeds with different speed …

country and industry levels and generally concentrate on overall FDI flows without distinguishing among different modes of FDI …. Empirical studies focusing on aggregated inward and outward FDI flows, especially at the country level, implicitly assume that … the same factors motivate all modes of FDI. To the extent that this is not the case, many empirical studies of overall FDI …

and performance of firms, we find that: i) corruption reduces FDI inflows and attracts lower quality investment in terms … of governance standards; ii) in misgoverned settings, FDI firms may magnify the problems of state capture and procurement … kickbacks, while paying a lower overall bribe burden than domestic firms; iii) FDI firms undertake those forms of corruption …