We survey several mechanisms that explain the composition of international capital flows: foreign direct investment …, foreign portfolio investment and debt flows (bank loans and bonds). We focus on information frictions such as adverse …

. This model generates dynamic relationships between foreign capital inflows, domestic investment and domestic bank debt in … accumulation of bank debt and increasing concentration of domestic lending and investment to the anticipation of contingent …

In the presence of asymmetric information, the stage at which financing decisions are made about investment projects in … channeling savings into investment. This paper compares the implications of two extreme cases regarding the information possessed …

features of the world at present are the low rates of investment and growth in some of the richest countries, whose surpluses … account for about half of the US deficit. The result is that financial capital is flowing out of countries with low investment …

The paper surveys a theory of FDI, which captures a unique feature: hands-on management standards, that enable … specialized in the source country. Consequently, FDI investors would make investment, both larger, and of higher quality (namely …, with large rates of returns), than the domestic investors. The theory can explain both two-way FDI flows among developed …

Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income … productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio … stakeholders. We emphasize the crucial role played by FDI in sustaining equity-financed capital investment for economies plagued by …

Americans were steadily building up a positive net foreign investment position. It subsequently describes the historic swing of …