We show that international consumption risk sharing is significantly improved by capital flows, especially portfolio investment. Concomitantly, we show that poor institutions hamper risk sharing, but to an extent that decreases with openness. In particular, risk sharing is prevalent even among...

During the 1990s most transition economies undertook a series of market reforms, including opening their capital accounts. This paper uses static and dynamic panel techniques to assess the effect of FDI, foreign loans and portfolio flows on domestic investment. In this partial adjustment setup,...

Corruption has become endemic in many African countries and is difficult to eradicate completely; therefore, reducing corruption to a tolerable level that will not deter foreign investors must be the aspiration of all political leaders and stakeholders. This study tries to identify the level of...

Using data on Chinese large-scale overseas investment and project contracts by sector, we analyze whether Chinese outward activity (COA) before the crisis worsened or alleviated the contractionary phases in developing countries. We find that, on average, COA did not increase vulnerability to the...

This paper analyzes how corporate taxation and regulatory requirements affect the location of financial sector FDI. We use novel information on new financial services entities established by multinational firms in 83 host countries. We find a negative effect of host country taxes on the...

This paper investigates studying FDI determinants in Islamic countries. We have chosen a sample with 8 Islamic countries in the period 1985-2009. We have applied a balanced panel data model. Hausman (1978) test shows that we should use random effects model. The results indicate that economic...

The aim of this paper is to construct and test a model explaining the inward Foreign Direct Investment (FDI) position of various members of European Monetary Union (EMU), on the basis of their location advantages during 1980-2010 period. The model focuses on the impact of EMU on FDI inflows and...

This study investigates the effect of currency union membership on foreign direct investment inflow to ECOWAS subregion. The study employed panel dynamic ordinary least square (DOLS) to estimate a panel data of fifteen ECOWAS countries from 1995 to 2010 with the framework of the gravity model....

Germany's role in financing economic development in Asia on a sustainable basis leaves much to be desired. Direct investors are still underrepresented in the region. Commercial banks have fueled speculative bubbles. Official development financing does not appear to be based on efficiency-related...

This paper empirically analyses the effect of foreign block acquisitions on the U.S. target firms' credit risk as captured by their CDS. The involvement of foreign investors leads to a significant increase in the target firms' CDS spreads. This effect is stronger when foreign owners are...