This paper models and tests the implications of institutional efficiency on the pattern of FDI. We posit that domestic … weak institutions. Under these circumstances, FDI is more sensitive to increases in enforcement costs. We then test this … prediction, comparing institutional efficiency levels for a large cross section of countries in 1989 to subsequent FDI flows 1990 …

(FDI). We posit that domestic agents have a comparative advantage over foreign agents in overcoming some of the obstacles … evidence about the 'multinationals wage premium.' FDI is also more sensitive to increases in enforcement costs. We then test … a large cross section of countries in 1989 to subsequent FDI flows from 1990 to 1999. We find that institutional …

's capitalists to support opening up the economy to FDI. This attitude switch is more likely to occur the greater the debt overhang … partial reform to a comprehensive one -- they would prefer to maintain the restrictions on "green-field" FDI. If the attitude …

(FDI). Vertical FDI takes place when the multinational fragments the production process internationally, locating each … stage of production in the country where it can be done at the least cost. Horizontal FDI occurs when the multinational … greater uncertainty reduces the expected income from vertical FDI but increases the expected income from horizontal FDI. In …