financial integration of the world economy …

, FDI flows in. This lowers returns to investment and thus the possibility of domestic agents to build up capital. Although … short term benefits in terms of increased wage rates occur, the wedge between the returns to investment and savings that is …

We study the role of competition for the hold-up problem in foreign direct investment in resource-based industries. The … host country government is not only unable to commit not to expropriate investment ex post, but is also unable to commit to … higher investment levels, increases host countries revenues, but hurts profits of international investors. Domestic firms can …