In this study, we apply three sets of econometric models to examine the effects of business regulations on foreign direct investment (FDI) by using FDI statistics from 12 source countries to 64 host countries in 2000. Our log-linear results suggest that FDI inflows are strongly correlated with...

This paper develops a theoretical model with a dual tax system that provides preferential treatments for foreign investment. The study suggests that in order to benefit from the preferential tax incentives and gain better property rights, high-productivity domestic firms intend to disguise as...