Razin, Assaf; Mody, Ashoka; Sadka, Efraim - International Monetary Fund (IMF) - 2003
We develop a simple information-based model of FDI flows. On the one hand, the abundance of "intangible" capital in … countries, enhances FDI flows. On the other hand, host-country corporate-transparency diminishes the value of this expertise …, thereby reducing the flow of FDI. Empirical evidence (from a sample of 9 source countries and 13 host countries over the 1980s …