enjoys an 'exorbitant privilege' on flow income from foreign assets, which is primarily related to foreign direct investment … FDI investment in 'tax optimisation' countries, the improper consideration of intellectual property, or financial … investment positions of a number of central and southern European countries were greatly supported by EU transfers. Valuation …

This paper revisits the institutional determinants of foreign direct investment (FDI) using a comprehensive new data … set on the regulations that govern FDI in more than 80 countries. It exploits the presence of confirmed zero investment … with actual inflow of investment. These results are found to be robust to different specifications …