U.S. investors are the largest group of international equity investors in the world, but to date conclusive evidence on which types of foreign firms are able to attract U.S. investment is not available. Using a comprehensive dataset of all U.S. investment in foreign equities, we find that the...

Foreign direct investment (FDI) and foreign portfolio investment (FPI) have been long considered as distinct and independent forms of international capital flows, but in the globalized world there are reasons to treat them as interconnected phenomena. This paper analyzes the mutual relationship...

This paper examines the influence of political risk guarantees of bilateral investment treaties on debt and equity flows using panel data on middle income countries for the period 1984-2011. Adopting system GMM methodology, the paper empirically finds that ratified bilateral investment treaties...

We show that recent methodological advances in econometric theory raise questions about the results obtained by some influential contributions on the determinants of international investment patterns, since the seminal paper by Lane and Milesi Ferretti (2008) (LMF). In most such contributions,...

In this paper I explore the role of portfolio diversification in explaining the distribution of foreign investment across countries. I capture the portfolio diversification motive by a measure of country-specific riskiness, “covariance risk,” which I construct as how countries' growth rates...

Today the growing tendency of global producing and marketing has been greatly influenced by the investment attractiveness of developing countries. This paper gives an obvious picture of Georgian economy and fields where foreign direct investments are made. To illustrate how institutional reforms...

This paper studies how investors allocate their portfolio equity investment internationally. I develop a model to formalize the mechanism by which investors extract the information about foreign target countries from foreign direct investment (FDI): When investors make FDI, due to their control...

The availability of bilateral capital flows between countries has given rise to a number of papers attempting to understand trends and determinants of capital flows between country pairs. Almost without exception, the papers find that the gravity model fits the data quite well. Specifically,...

We investigate the relationship between economic growth and lagged international capital flows, disaggregated into FDI, portfolio investment, equity investment, and shortterm debt. We follow about 100 countries during 1990-2010 when emerging markets became more integrated into the international...