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investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of …
Persistent link: https://www.econbiz.de/10004991363
This paper argues that foreign direct investment in economies with credit market imperfections may increase their vulnerability to capital flow shocks. Due to better access to financial markets foreign firms can use different wage contracts than domestic ones. This alters the domestic wage...
Persistent link: https://www.econbiz.de/10004991564
In this paper we compare the two standard forms of international investments in developing countries, debt and foreign direct investment, form a finance perspective. It is shown that the sovereign risks associated with debt finance are generally less severe than the ones which come with FDI. FDI...
Persistent link: https://www.econbiz.de/10004993120
An 'option-pricing' model is employed to analyse when a firm should expand its production capabilities abroad. In a framework where the firm's profits are determined by some average of the attractiveness of the home and foreign countries, and attractiveness in each country follows differentiated...
Persistent link: https://www.econbiz.de/10005729296
This paper is concerned with the impact of tax sparing provisions on the location choices of multinational enterprises. Special attention is paid to the economic in°uence of tax sparing because the OECD proposal to reconsider the inclusion of this provision in bilateral tax treaties is highly...
Persistent link: https://www.econbiz.de/10005729946
We examine the economic justification for providing investment subsidies to foreign-owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering subsidies to...
Persistent link: https://www.econbiz.de/10005729953
domestic wages up, dampening the incentives for FDI flows. A general equilibrium model that emphasizes the joint determination … wages above autarky levels is more likely in large labor-abundant technology-backward countries or when the fixed cost of … foreign investment is low. Second, the conditions that depress autarky wages -technology differences and labor abundance- are …
Persistent link: https://www.econbiz.de/10005730230
Investments in a country are subject to risks stemming from the same political events and government policies. Therefore it is possible to construct a portfolio which mimics the income profile of a particular FDI project using assets with readily observable prices. This paper provides a general...
Persistent link: https://www.econbiz.de/10005730589
The purpose of this work is to empirically study the importance of agglomeration economies in the selection of geographical zones in which foreign investors are willing to develop their investment projects in Chile. For this purpose a discrete choice model, te conditional logit model (CLM),...
Persistent link: https://www.econbiz.de/10005730733
The aim of this paper is to analyse the determinants of diversification mode (acquisition versus greenfield) through foreign direct investment considering various theories, such as those of mergers and acquisitions, transaction costs, the learning organisation, the institutional context of the...
Persistent link: https://www.econbiz.de/10005731159