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on whether global diversification is valuable is inconclusive. This paper uses detailed FDI data for 251 UK multinational … firms and 4,676 subsidiaries to show that multinational firms exhibit, on average, a global diversification premium compared … multinational firms' investment and global diversification have significantly increased over the past three decades …
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In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. Frequently, foreign direct investment is financed in the host country without an international capital movement. We develop a model in which the optimal choice of...
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