The Effects of Policy Uncertainty on the Choice and Timing of Foreign Direct Investment: An Exploratory Firm-Level Assessment
نویسندگان
چکیده
As foreign investors tend to be skeptical about the durability of economic reforms being undertaken in a number of developing countries on the one hand, and insofar as physical capital is partly or fully irreversible on the other, even if investors are risk-neutral, they tend to favor a `wait-and-see’ attitude in the early stages of the reforms. This paper is an exploratory attempt at providing a simple unifying framework that makes explicit and clarifies thinking on the inter-linkages between policy uncertainty, option value and the choice and timing of FDI at a firm-level. The model is used as the basis for the derivation of a generalized reduced form relationship between FDI at a micro-level and its influencing variables.
منابع مشابه
The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty
متن کامل
Environmental Quality and Growth Effects of Foreign Direct Investment in Nigeria
Abstract The study examines the growth effects of foreign direct investment on environmental quality in Nigeria between 1970 and 2013. Variables like per capita income, environmental degradation, foreign direct investment, human capital, inflation, trade openness, interest rate, and the interaction term between foreign direct investment and carbon emission were employed in the study. A long r...
متن کاملTax competition for foreign direct investment under information uncertainty
a r t i c l e i n f o JEL classification: F23 H25 Keywords: Corporate taxation International profit shifting Real options FDI The relation between taxation states and foreign direct investment (FDI) has been studied from several perspectives and with states at different levels of development. Most previous studies, however, have only considered the impact of tax level on FDI volume. This paper ...
متن کاملAn Investigation into Effects of Dividend Policy on Financial Growth of Advertising Firms in Kenya
Effects of dividend policy on corporate financial growth, is a major concern of most entities. Whether dividends have an influence on the value of the firm, is an important question in dividend policy. This study aimed at investigating the effects of dividend policy on financial growth of media firms. The study was conducted in Nairobi at The Nation media Group Headquarters. Respondents were se...
متن کاملExchange Rate Volatility and the Timing of Foreign Direct Investment: Market-seeking versus Export-substituting
This paper examines the impact of exchange rate uncertainty on the timing of foreign direct investment (FDI) with heterogeneous investing motives. We first extend DixitPindyck’s real options model to show that while an increase in exchange rate volatility tends to delay the FDI activity of a market-seeking firm, it might accelerate the FDI activity of an export-substituting firm if the firm’s d...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 1998