While to an economist, business person or policy maker, movement of goods, services and foreign direct investment should logically be covered in the same agreement, history has not allowed this to happen. International legal regimes are spinning into greater fragmentation as the number of...

Whether cross-border financial market integration has raised global insurance, is still a controversial issue in the literature. If this is so, what should we observe in the data? The insurance literature emphasizes that efficient risk-sharing requires financial markets to channel resources to...

This report identifies and discusses best practices to attract and promote inward and outward foreign direct investment. To better inform Canadian policy-making at various levels of government, this report provides an extensive and systematic review of the empirical evidence on the public...

We analyze the impact of the introduction of credit default swaps (CDS) on real decision making within the firm, taking into consideration differences in firms' local economic and legal environments. We extend the model of Bolton and Oehmke (2011) to take into account uncertainty whether the...

We analyze the impact of the introduction of credit default swaps (CDS) on real decision making within the firm, taking into consideration differences in firms' local economic and legal environments. We extend the model of Bolton and Oehmke (2011) to take into account uncertainty whether the...

We analyze shifts in the structure of China's capital outflows over the past decade. The composition of gross outflows has shifted from accumulation of foreign exchange reserves by the central bank to nonofficial outflows. Unlocking the enormous pool of domestic savings could have a significant...

This working paper was written by J. Scott Davis (Federal Reserve Bank of Dallas) and Eric Van Wincoop (University of Virginia and NBER).The correlation between capital inflows and outflows has increased substantially over time in a sample of 127 advanced and developing countries. We provide...

Observed international investment positions and cross-country heterogeneity in rates of return to capital are hard to reconcile with frictionless capital markets. In this paper, we develop a theory of international capital allocation: a multi-country dynamic spatial general equilibrium model in...

President Obama's major trade initiatives, the Trans-Pacific Partnership, the Transatlantic Trade and Investment Partnership, and obtaining fast-track trade negotiating authority from Congress, have run into a buzz saw of opposition, which has derailed prospects for U.S. trade liberalization for...

As substantive economic and social phenomena, international trade and investment are inextricably linked. Yet like twins separated at birth, for decades they have been regulated by discrete international legal systems. Despite the historic parting of their respective legal systems, international...