Razin, Assaf; Rubinstein, Yona; Sadka, Efraim - Hong Kong Institute for Monetary Research (HKIMR), … - 2004
The paper develops a model with ¡§lumpy¡¨ setup costs, which govern the flow of bilateral foreign direct investment (FDI). Every country is potentially both a source for FDI flows to several host countries, and a host for FDI flows from several source countries. But technologically-advanced...