In his Fisher-Schultz Lecture, Martin Feldstein examined the effects of non-neutral tax rules on business investment by … existing U.S. tax rules, substantially discouraged investment in the past 15 years." In a detailed examination of Feldstein … with the relatively robust levels of net investment between 1965 and 1981 actually shown in the newly benchmarked National …

This article estimates a dynamic structural model of firm R&D investment in twelve Swedish manufacturing industries and … uses it to measure rates of return to R&D and to simulate the impact of trade restrictions on the investment incentives. R … both the expected return to R&D and R&D investment level, thus reducing an important source of the dynamic gains from trade …

How does rising foreign investment influence domestic economic activity? Firms whose foreign operations grow rapidly …-specific geographic distributions of foreign investment, to predict changes in foreign investment by a large panel of American firms …. Estimates produced using this instrument for changes in foreign activity indicate that 10% greater foreign capital investment is …

This paper evaluates evidence of the impact of outbound foreign direct investment (FDI) on domestic investment rates …. OECD countries with high rates of outbound FDI in the 1980s and 1990s exhibited lower domestic investment than other … countries, which suggests that FDI and domestic investment are substitutes. U.S. time series data tell a very different story …

Foreign direct investment offers a rich laboratory in which to study the broader economic effects of securities market … mispricing. We outline and test two mispricing-based theories of FDI. The cheap assets' or fire-sale theory views FDI inflows as … the purchase of undervalued host country assets, while the cheap capital' theory views FDI outflows as a natural use of …

specialized in the source country. Consequently, FDI investors would make investment, both larger, and of higher quality (namely … coefficients, reflect a more significant role for FDI in the domestic investment process than other types of capital inflows …The paper surveys a theory of FDI, which captures a unique feature: hands-on management standards, that enable …

Capital income tax policy affects investment by the parent and affiliates of multinational corporations (MNCs). In a … model in which technical advances are embodied in new capital, investment will translate directly into productivity gains … out: (1) growth in parent and affiliate capital are the most important sources of growth, with FDI contributing more to …