When is FDI a Capital Flow?
Episode von Volkswirtschaft - Open Access LMU - Teil 02/03 von Ludwig-Maximilians-Universität München · 1. Juni 2006
In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. Frequently, foreign direct investment is financed in the host country without an international capital movement. We develop a model in which the optimal choice of financing an international investment trades off the relative costs and benefits associated with the allocation and effectiveness of control rights resulting from the financing decision. We find that the financing choice is driven by managerial incentive problems and that FDI involves an international capital flow when these problems are not too large. Our results are consistent with data from a survey on German and Austrian investments in Eastern Europe.
Weitere Episoden von „Volkswirtschaft - Open Access LMU - Teil 02/03“
- Social Norms and the Evolution of Conditional Cooperation 1. März 2007
- An Empirical Test of the Reder Hypothesis 1. März 2007
- Competition for Firms in an Oligopolistic Industry: Do Firms or Countries Have to Pay? 1. März 2007
- The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment 1. Februar 2007
- Can Opacity of a Credible Central Bank Explain Excessive Inflation? 1. Februar 2007
- The Impact of Naïve Advice and Observational Learning in Beauty-contest Games 24. Januar 2007
- Is the veil of ignorance only a concept about risk? An experiment 1. Januar 2007
- Default Rates in the Loan Market for SMEs 1. Januar 2007
- Best Responding to What? A Behavioral Approach to One Shot Play in 2x2 Games 1. Januar 2007
- Conditional cooperation on three continents 1. Januar 2007
- Spatial Convergence in Height in East-Central Europe, 1890-1910 1. Januar 2007
- Central Bank's Action and Communication 1. Januar 2007
- Adding a Stick to the Carrot? The Interaction of Bonuses and Fines 1. Januar 2007
- Education, Dynamic Signaling and Social Distance 1. Januar 2007
- Was Weber Wrong? A Human Capital Theory of Protestant Economic History 1. Januar 2007
Alle Episoden von Volkswirtschaft - Open Access LMU - Teil 02/03 · Mehr Bildung-Podcasts