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Vying for Foreign Direct Investment : A Eu-Type Model of Tax Competition

Razin, Assaf - 2006

This paper brings out the special mechanism through which taxes influence bilateral FDI, when investment decisions are two-fold in the presence of fixed setup flows costs. For each pair of source-host countries, there is a set of factors determining whether aggregate FDI flows will occur at all,...

Persistent link: https://www.econbiz.de/10012782945

Liquidity, Institutional Quality and the Composition of International Equity Outflows

Goldstein, Itay - 2010

country. Based on a theoretical model, we predict that (1) source countries with higher probability of aggregate liquidity … 140 source countries from 1985 to 2004. Our key variable is the probability of an aggregate liquidity crisis, estimated … that the probability of a liquidity crisis has a strong effect on the composition of foreign equity investment. Furthermore …

Persistent link: https://www.econbiz.de/10012759578

A Brazilian Debt-Crisis

Razin, Assaf; Sadka, Efraim - 2021

We develop a stylised model of multiple equilibria, with country risk spreads at the focus of the analysis. Fears that the country default on its debt triggers a reversal in the direction of inflows of international financial capital raise interest-rate spreads and thus the cost of servicing the...

Persistent link: https://www.econbiz.de/10013219683

Liquidity, Institutional Quality and the Composition of International Equity Flows

Goldstein, Itay - 2010

liquidity shocks, the liquidation price they can get will be lower when buyers know that they have more information on … expectation of future liquidity problems export relatively more FPI than FDI, and (2) this effect strengthens as the source … source countries from 1985 to 2004. Our key variable is the predicted severity of liquidity shock, as proxied by episodes of …

Persistent link: https://www.econbiz.de/10013148094

A Brazilian Debt-Crisis Model

Razin, Assaf; Sadka, Efraim - 2021

We develop a model that captures important features of debt crises of the Brazilian type. Its applicability to Brazil lies in the fact that (1) in Brazil the macro fundamentals were sound (e.g., a primary surplus, a relatively low debt/GDP ratio, etc.); and (2) in the Brazilian case the trigger...

Persistent link: https://www.econbiz.de/10013244094

Liquidity and Expected Returns : Lessons from Emerging Markets

Bekaert, Geert - 2012

Given the cross-sectional and temporal variation in their liquidity, emerging equity markets provide an ideal setting … to examine the impact of liquidity on expected returns. Our main liquidity measure is a transformation of the proportion … of zero daily firm returns, averaged over the month. We find that our liquidity measures significantly predict future …

Persistent link: https://www.econbiz.de/10012755671

Flights to safety

Baele, Lieven; Bekaert, Geert; Inghelbrecht, Koen; Wei, Min - 2012

Despite a large and growing theoretical literature on flights to safety, there does not appear to exist an empirical characterization of flight-to-safety (FTS) episodes. Using only data on bond and stock returns, we identify and characterize flight to safety episodes for 23 countries. On...

Persistent link: https://www.econbiz.de/10011590578

Fiscal Policies, Debt, and International Economic Interdependence

Frenkel, Jacob A.; Razin, Assaf - 2021

This paper deals with the relation between government spending and real rates of interest as well as with the international transmission of fiscal policies.The dependence of the patterns of consumption in one country on fiscal policiesin the rest of the world are examined. For this purpose a...

Persistent link: https://www.econbiz.de/10013223092

The International Transmission and Effects of Fiscal Policies

Frenkel, Jacob A.; Razin, Assaf - 2021

In recent years the world economy has been subject to large and unsyncronized changes in fiscal policies, high and volatile real rates of tnterest, large fluctuations in real exchange rates, and significant variations in private-sector spending. This paper reviews some of the key facts...

Persistent link: https://www.econbiz.de/10013225419

The International Transmission of Fiscal Expenditures and Budget Deficits in the World Economy

Frenkel, Jacob A.; Razin, Assaf - 2021

This paper analyses the effects of fiscal policies on rates of interest and wealth in the world economy. Uncertainty concerning the length of life yields an equilibrium in which private and social rates of discount differ and budget deficits exert real effects. It is shown that a current budget...

Persistent link: https://www.econbiz.de/10013243646