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Gains from FDI Inflows with Incomplete Information / Assaf Razin, Efraim Sadka.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Razin, Assaf.
Contributor:
National Bureau of Economic Research.
Sadka, Efraim.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9008.
NBER working paper series no. w9008
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2002.
Summary:
The paper develops an international macroeconomic model of FDI flows with a unique feature: a hands-on management ability to react in real time to changing economic environments. Anticipating this advantage, foreign direct investors can outbid other investors in a certain industry in which they specialize in the source country. The model can explain both two-way FDI flows among developed countries and one-way FDI flows from developed to developing country. The unique gains from FDI to the host country stem from the increased eciency of domestic investment.
Notes:
Print version record
June 2002.

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