Business opportunities-as reflected in the size and growth potential of markets-are the most powerful drivers of foreign direct investment. But investment climate features such as strong institutions and investor friendly regulations also matter and may even boost the development impact of the...

This study analyzes the effects of government policies on the short-run and long-run movement of locally owned firms from a developed country to a less-developed country and on the output and growth rate of each country in the presence of home bias. The analysis uses a model which was developed...

As the scope of the rules on subsidies and countervailing measures has expanded from trade to investment, the area of global subsidy regulation is now experiencing new developments as well as challenges. This Perspective calls attention to the need to improve the regulation of OFDI subsidies.