to investment performance. To show this, we construct a comprehensive new database on the returns on foreign investment … sectors and destination countries of investment. They also seem to do a worse job in timing the market. …

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 financing an international investment trades off the relative costs …