This paper presents econometric evidence for a link between a country's level of egalitarianism and its inward foreign direct investment. In order to provide a theoretical rationale for this relationship, I embed Hart and Moore's (2008) novel contractual foundation into a simple model of global...

This paper presents econometric evidence for a link between a country's level of egalitarianism and its inward foreign direct investment. In order to provide a theoretical rationale for this relationship, I embed Hart and Moore's (2008) novel contractual foundation into a simple model of global...

This paper presents econometric evidence for a link between a country’s level of egalitarianism and its inward foreign direct investment. In order to provide a theoretical rationale for this relationship, I embed Hart and Moore’s (2008) novel contractual foundation into a simple model of...

The decision of companies to enter international markets, either via exports or foreign direct investment (FDI), has been postulated by the self-sorting model of Helpman, Melitz and Yeaple (HMY, 2004). In the strict sense, the theoretical predictions of HMY only apply to firms that become...

The decision of companies to enter international markets, either via exports or foreign direct investment (FDI), has been postulated by the self-sorting model of Helpman, Melitz and Yeaple (HMY, 2004). In the strict sense, the theoretical predictions of HMY only apply to firms that become...

Recent theoretical work suggests that the presence of foreign direct investment (FDI) lowers a country's noncooperative Nash tariff. To test this hypothesis, we first adapt the theoretical model formulated by Blanchard (2010) to derive an intuitive, empirically testable equation. This equation...

The international transactions accounts provide information on trade in goods and services (including the balance of payments and the balance of trade), investment income, and government and private financial flows. In addition, the accounts measure the value of U.S. international assets and...

This study investigates the relationship between FDI and exports in a sample of ten African countries. Using annual data from 1970 to 2007, we find that FDI causes exports in Burkina Faso and South Africa supporting the FDI-led exports point of view, while exports cause FDI in Cameroon, Cote...

The Indonesian economy has a long history of steady growth punctuated by times of turmoil and crisis. Recently Indonesia has faced the COVID-19 pandemic, inflation, contractionary U.S. monetary policy, and fluctuating commodity prices. To examine how the economy is faring since the pandemic...