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This paper uses the standard one-sector neoclassical growth model to investigate why China’s consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly...
Persistent link: https://www.econbiz.de/10003758478
on "crowding-in" or "crowding-out" effect in India. Recent studies do not deal with this issue by taking account of the …
Persistent link: https://www.econbiz.de/10011422039
Germany is a large source country for investment and technology transfer into India and Indian investments in Germany … bilateral investments. In this context, this paper aims to highlight the barriers to investment flows between India and Germany … investment flows between India and Germany. In addition, there are cultural and language barriers and lack of knowledge about the …
Persistent link: https://www.econbiz.de/10010404649
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This paper investigates the determinants of vertical integration. We first derive a number of predictions regarding the relationship between technology intensity and vertical integration from a simple model with nancial imperfections andincomplete contracts. Then, we investigate these...
Persistent link: https://www.econbiz.de/10005857773
We study properties of structured financial products optimizing a utility functional of a customer. The conventional method may have the disadvantage that the a priori restriction to a certain number of assets could make it impossible to find the optimal portfolio. So instead of optimizing the...
Persistent link: https://www.econbiz.de/10005858026
We propose an equity finance model with agency problems and investigate the relationship between dividend taxation and inefficient investments. Contrary to both the old and the new view of dividend taxation, a fall in the dividend tax rate is found to improve corporate governance by increasing...
Persistent link: https://www.econbiz.de/10005858049
This paper sheds light on the influence of exchange rate volatility on foreign direct investment (FDI), both at the theoretical and the empirical level. The novelty of the empirical analysis, which is based on a panel of 27 OECD countries over the period 1982-2002, is to provide evidence of a...
Persistent link: https://www.econbiz.de/10005858054
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