, bilateral economic interactions like trade, FDI and portfolio investment, positively correlate with lending. Chinese banks …' lending to EMDEs also strongly correlates with trade, but not with FDI and, unlike other banks, it correlates negatively with …

We develop a simple information-based model of FDI flows. On the one hand, the abundance of ""intangible"" capital in … countries, enhances FDI flows. On the other hand, host-country corporate-transparency diminishes the value of this expertise …, thereby reducing the flow of FDI. Empirical evidence (from a sample of 9 source countries and 13 host countries over the 1980s …