internal debt, a number of developing countries do not. In this paper, we analyze the effect on FDI and host country welfare of … thin capitalization rules when multinationals can also shift income via transfer prices. We show that while permissive thin … capitalization limits may be needed in developing countries to attract FDI, the amount of debt financing allowed by the permissive …

assesses the impact of free market institutions on a country's inward foreign direct investment (FDI) performance. We find that … a free market institutional system in a host-country is a factor that attracts inward FDI to emerging Asian economies by …