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In this paper, we analyze the determinants of international movements of physical capital in a model with uncertainty …, by the asset preferences of risk averse consumer-investors. In a one-good variant in the spirit of the MacDougall model …
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We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits exceeds the cost of R&D. Diversity of intermediates contributes to total factor productivity in the...
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Jagdish Bhagwati coined the phrase quid pro quo foreign investment to describe international investments made in anticipation of host country trade policy and perhaps with the intention of defusing a protectionist threat. We apply Bhagwati's notion to situations where (i) foreign investment is...
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