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 … 1992, due to productivity growth in MNCs with Canadian affiliates; (3) the investment elasticity of productivity growth is …

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 …

This paper studies the investment creation and diversion effects of the EU's Single Market programme (EU92). We first … present empirical evidence which suggests that EU92 caused investment diversion in the European Free Trade Association (EFTA …) nations and investment creation in the EU. The economic logic behind this is simple. Discriminatory liberalization shifts …

We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

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 …

trade and investment are substitutes persists in trade policy" analysis. This paper considers the liberalization of … commodity trade versus liberalization" allowing direct investment versus the two together. For a relatively skilled …-labor-scarce" economy, I show that trade and investment liberalization are quite different together are in a sense complements. The …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …