We develop a dynamic multi-country trade model with foreign direct investment (FDI) in the form of non-rival technology … actual aggregate cross-section data for 89 countries in 2011 to a hypothetical world without FDI. The gains from FDI amount … to 9% of world's welfare and to 11% of world's trade, unevenly distributed among winners and losers. Net exports of FDI …

-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes …

Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an …, passive investment, and active investment of multinational firms, using high-quality administrative data on virtually all … multinational affiliates. Additionally, an ACE increases intra-group lending and other forms of passive investment but has no …

This paper models a multilateral agreement on investment (MAI) as a coordination device. Multinational enterprises can … invest in any number of countries. Without a multilateral investment agreement, expropriation triggers an investment stop by … regime increases worldwide FDI and raises the world interest rate. Distinguishing three groups of countries, we show that …

foreign portfolio investment and the direction of these effects supports the conjecture that foreign stakeholders are more …

investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a …