This paper attempts to clarify the reasons for the rapid growth of FDI in developing countries, particularly East Asian … countries, compared with that of FDI in developed countries. To do this, we will examine the mechanics of HFDI and VFDI with a … Japanese firms; FDI choices reveals that the reduction of tariff rates attracts even less productive VFDI firms. In contrast …

foreign direct investment (FDI) by exploiting information on sales and purchases of foreign affiliates of MNEs. Pure … horizontal (vertical) FDI is defined as FDI with a high share of transactions (i.e., both purchases of inputs and sales of … outputs) in the local market (with the home country). Partially horizontal and vertical FDI are also defined. We then estimate …

of FDI barriers than was conditioned upon in our estimation sample. Overall, we demonstrate the richness of the … simulation framework as a quantitative tool for FDI policy analysis. …