strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location … of investment - foreign trade zones and labor subsidies. We use simulations to explore the impact these policies had on … the geographic distribution of Japanese investment. The simulations reveal that in aggregate promotion programs largely …

This paper evaluates evidence of the impact of outbound foreign direct investment (FDI) on domestic investment rates …. OECD countries with high rates of outbound FDI in the 1980s and 1990s exhibited lower domestic investment than other … countries, which suggests that FDI and domestic investment are substitutes. U.S. time series data tell a very different story …

Foreign direct investment offers a rich laboratory in which to study the broader economic effects of securities market … mispricing. We outline and test two mispricing-based theories of FDI. The cheap assets' or fire-sale theory views FDI inflows as … the purchase of undervalued host country assets, while the cheap capital' theory views FDI outflows as a natural use of …

specialized in the source country. Consequently, FDI investors would make investment, both larger, and of higher quality (namely … coefficients, reflect a more significant role for FDI in the domestic investment process than other types of capital inflows …The paper surveys a theory of FDI, which captures a unique feature: hands-on management standards, that enable …

This paper asks whether startups react more to changing investment opportunities than more mature firms do. We use the … nation-wide manufacturing shocks to develop an instrument for changing investment opportunities, and examine employment …

This paper studies the investment creation and diversion effects of the EU's Single Market programme (EU92). We first … present empirical evidence which suggests that EU92 caused investment diversion in the European Free Trade Association (EFTA …) nations and investment creation in the EU. The economic logic behind this is simple. Discriminatory liberalization shifts …

In his Fisher-Schultz Lecture, Martin Feldstein examined the effects of non-neutral tax rules on business investment by … existing U.S. tax rules, substantially discouraged investment in the past 15 years." In a detailed examination of Feldstein … with the relatively robust levels of net investment between 1965 and 1981 actually shown in the newly benchmarked National …