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In the literature on exports and investment, most productive firms are seen to invest abroad. In the Helpman et al. (2004) model, costs of transportation play a critical role in the decision about whether to serve foreign customers by exporting, or by producing abroad. We consider the case of...
Persistent link: https://www.econbiz.de/10014403090
Capital flows to the nonindustrial countries share three striking characteristics. First, the bulk, of these flows was in the form of debt, not equity; second, the loans were mostly to, or guaranteed by, debtor governments; and third, these debts were largely bank loans, not bonds. This paper...
Persistent link: https://www.econbiz.de/10014396446
This paper demonstrates that instability associated with investment risk is critical in explaining the level of foreign direct investment for the Middle East and North Africa (MENA) countries, which generally have higher investment risk than developed countries. The empirical results support...
Persistent link: https://www.econbiz.de/10014401431
This paper summarizes the theory and empirical evidence on the determinants of foreign direct investment. These determinants include expected relative rates of return, risk diversification, market size, technological advantage, market failure, oligopolistic rivalry, liquidity, currency strength,...
Persistent link: https://www.econbiz.de/10014396385
Assiduously tracking the trends and consequences of globalization, the IMF's quarterly magazine Finance & Development … focuses on financial globalization, including the policy implications of the huge growth in cross-border capital flows …. Articles also look at the expansion of world trade, explore the impact of globalization on jobs, taxation, and the poor, and …
Persistent link: https://www.econbiz.de/10014404799
Persistent link: https://www.econbiz.de/10009424879
What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge: (i) lower...
Persistent link: https://www.econbiz.de/10014402678
This paper reviews recent developments in private market financing for developing countries. Bank creditors themselves have been more amenable to restructuring in an environment where secondary market discounts on bank claims were falling significantly below the level of bank provisioning. This...
Persistent link: https://www.econbiz.de/10014397187
This study surveys recent trends in private market financing for developing countries. In addition to examining developments in flows to developing countries through banking and securites markets, it analyzes the institutional and regulatory framework for developing country finance,...
Persistent link: https://www.econbiz.de/10014399282
This paper analyzes the effects of several policy and other macro-economic variables on the ratio of private investment to GDP in developing countries. Using data for a sample of 23 developing countries over the period 1975-87, the econometric evidence indicates that the rate of private...
Persistent link: https://www.econbiz.de/10014395767