Mercosur countries have witnessed a boom of foreign direct investment (FDI) inflows since the early 1990s. However, regional integration, viewed in isolation, was not sufficient for the subregion to regain its attractiveness to FDI. FDI growth in individual Mercosur countries was closely related to reform efforts on the national level.The pattern of EU FDI in the subregion reveals some signific...

Why and how firms take advantage of foreign opportunities, especially via foreign direct investment (FDI) has been much documented. China, as a major emerging market, has attracted significant flows of FDI, to become the second largest receipt. This paper briefly examines the literature on FDI and focuses on likely determinants of FDI in China. It then analyses responses from 22 firms operating...

To increase inward foreign direct investment (FDI), policy makers increasingly resort to the ratification of double taxation treaties (DTTs). However, the effectiveness of DTTs in inducing higher FDI is still open to debate, as the empirical evidence of existing studies is anything but conclusive. In contrast to earlier approaches, we use a largely unpublished dataset on bilateral FDI stocks, c...

Currently there is a small, but growing, literature extending analysis of the conflict-trade relationship by introducing foreign direct investment (FDI). We present a formal model that illustrates how FDI can improve international relations, as does trade. We then proceed to test the model empirically adopting three innovations: First, we employ unique bilateral FDI data instead of systemic FDI...

The financial aspects of Foreign direct investment (FDI) are the focus of this paper. The gains from trade argument (applied to intertemporal trade) is re-examined in this case of informational-asymmetry-driven FDI. FDI is observed to be a predominant form of capital flows to emerging economies, especially when they are liquidity-constrained internationally during a global financial crisis. We ...

Ð The NEM in Latin America radically altered foreign direct investment in ̄ows to the region. Previously restrictive national policies became ones that facilitated foreign direct investment (FDI) in the context of new business opportunities. Transnational corporations (TNCs) took a new look at the region in the context of their evolving corporate strategies, examples being eciency-seeking corpo...

This paper studies the effect of sovereign risk on capital flows from rich to poor nations in the context of a two-country model, where Foreign Direct Investment (FDI) creates positive externalities in domestic production. We show that if externalities are large, a developing country never expropriates foreign assets, and behaves as under perfect enforcement of foreigners’ property rights, jump...

A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic bank loans innovate more than other firms do. Among enterprises not owned by the state, inward FDI ...

The study analyzes the impact of foreign direct investment (FDI) and domestic investment (DI) on economic growth in Sub-Saharan Africa for the period 1990–2003. The results show that DI is positive and significantly correlated with economic growth in both the OLS and fixed effects estimation, but FDI is positive and significant only in the OLS estimation. The study also found that FDI has an in...