Razin, Asaf - In: CESifo economic studies : CESifo, a joint initiative of … 49 (2003) 3, pp. 415-428
The paper surveys theories of FDI and supporting evidence. A new theory flashes out a unique feature of FDI: hands on … firms. The implications of the theory are that investment is both more efficient (namely, made dependent on the firm …-specific productivity) and, in plausible cases, also larger. The theory can explain both two way flows of FDI among developed economies, and …
