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political power to expropriate productive assets. In a joint venture, the domestic asset owner bears the risk of expropriation … institutional framework in the host country, the elite in uences the risk of expropriation. We determine the equilibrium risk of … expropriation in this framework and the resulting pattern of international production. We also analyze as to how globalization …
Persistent link: https://www.econbiz.de/10010286399
political power to expropriate productive assets. In a joint venture, the domestic asset owner bears the risk of expropriation … institutional framework in the host country, the elite influences the risk of expropriation. We determine the equilibrium risk of … expropriation in this framework and the resulting pattern of international production. We also analyze as to how globalization …
Persistent link: https://www.econbiz.de/10011345473
expropriation targets the foreign investor whereas in a joint venture the domestic agent bears this risk. We determine the … equilibrium level of the probability of expropriation and show that the ruling elite, by choosing it, discriminates in favor of …
Persistent link: https://www.econbiz.de/10010301545
Durante la crisis económica actual en el conjunto de países desarrollados se ha visto un alejamiento de flujos de la inversión extranjera directa (IED), mientras que en el conjunto de países en desarrollo y en transición, se ha registrado un aumento. En este escenario y a lo largo de los...
Persistent link: https://www.econbiz.de/10011859344
This paper links the foreign economic engagement of India's states with the literature on federalism, thereby contributing to an understanding of the political economy of FDI inflows in a parliamentary federal system. More specifically, it studies subnational governments' international...
Persistent link: https://www.econbiz.de/10011748525
We examine the global ownership structure of firms in the context of the investment regime. Investment agreements extend valuable privileges to firms invested abroad. But, these privileges only apply to firms whose assets are owned in a country that has signed an agreement with their host...
Persistent link: https://www.econbiz.de/10014503558
We show that traditional gravity variables play a significant role in explaining trade flows related to global value chain participation. We find evidence that cooperation costs - measured by linguistic and geographical proximity - are more relevant for trade that reflects cross-border...
Persistent link: https://www.econbiz.de/10011804375
This paper investigates the design and implications of international investment agreements. These are ubiquitous, potent and heavily criticized state-to-state treaties that protect foreign investment against host country policies. We show that optimal agreements cause national but not global...
Persistent link: https://www.econbiz.de/10011917016
The theories of internalization and internationalization provide general factors of international market entry but are not precise about its timing. A model of waiting and growth options seizes the importance of flexibility to FDI decisions and centers the impact of uncertainty. The results of a...
Persistent link: https://www.econbiz.de/10010295803
The surge of maritime piracy in the Gulf of Aden is often related to lawlessness and poverty in Somalia. We set up a simple model to describe the choice of becoming a pirate in a setting with an industrialized and a developing country which both engage in fishing in the same waters. As a result...
Persistent link: https://www.econbiz.de/10010301553