investment and production. We hypothesize that financial strength generates advantages that can be exploited through cross …-border investment activity. The hypothesis is tested in a series of binary-response models, using a sample of 1379 European non …-border investment. We conclude that without explicit consideration of the financial dimension, firms’ FDI decisions cannot be properly …

We argue that mainstream FDI theory underplays financial motivations for interna-tional investment, and suggest several …

integration will trigger a race between countries to attract inward foreign direct investment (FDI). It is further argued that … inward FDI (the 'elements' of the race) deviate from those of long-term efforts to develop a favourable investment climate …

the privatization. The two key mechanisms explaining the results are: (i) a government owner keeping control takes into … account the negative effect on employment of investment and (ii) a privatizing government has a stronger incentive to invest …

This paper studies privatization policy in an international oligopoly. The argument that equal treatment of foreign … relevant in privatization auctions than in greenfield FDI models, since these profit shifts are partly paid for by the foreign … firms in the bidding competition. Effects of local equity requirements, trade and investment policies are also studied. It …

privatization. Market power is shown to be an important determinant of the equilibrium market structure, when greenfield investment … costs are high. When the greenfield investment costs are low, however, the risk of monopolization decreases. It is also … shown that "Investment Guarantees" can be counterproductive by helping the buyer of the state assets prevent other investors …