The motivation of our paper comes from David Gale’s seminal work in 1974. He constructed an example of the ‘‘transfer paradox’’ based on three Leontief functions. The transfer paradox is that when there is a set of agents in the home country and that the home country is trading with other countries, then certain public lump-sum tax transfer plans could make all agents in the home country better...

The reconcilability of actions and beliefs in inter-country relationships, either in business or politics, is of vital importance as incorrect beliefs on foreigners' behavior can have serious implications. We study a typical inter-country interaction by means of a controlled laboratory investment game experiment in Germany, Israel and Palestine involving 400 student participants in total. An in...

We develop a two-country overlapping-generations model with domestic financial frictions and show that cross-country differences in financial development explain three recent patterns of international capital flows. In our model, domestic financial frictions distort the interest rates and production efficiency in the less financially developed country. Capital flows not only lead to cross-count...

The purpose of this research is to evaluate economic situation of Kazakhstan’s market and its attraction to Foreign Direct Investors, to provide clear view of potential that Kazakhstan economy has and the prospective of further development of the area of the economy and the future of this country. The country of Kazakhstan is one of the largest world energy markets due to its considerable reser...

This study tests weak and semi-strong form efficiency of the foreign exchange market in Sri Lanka during the recent float using six bilateral exchange rates. Weak-form efficiency is examined using unit root tests while semi-strong form efficiency is tested using co-integration, Granger causality tests and variance decomposition analysis. Results indicate that the Sri Lankan foreign exchange mar...

This paper analyzes the impact of foreign direct investment on domestic ...nancial markets more speci...cally on the credit constraints of domestic ...rms. There is considerable ambiguity regarding the impact of FDI on credit constraints of its domestic competition. It has been argued that FDI has a negative impact by crowding out domestic ...rms or by reducing pro...tability via product market...

abstract the expansion of financ system expanding in a country is one of the main determinant factors of foreign investment. flow and the system is affected by essential factors such as political constancy. political risks of each country is evaluated by political system figuration, its constancy, policies constancy and regular rules existence for political competition. this constancy is the mo...

as putin regained the power in russia, the situation gave a second chance to this country to avoid both the west and the benefits of convergence with its foreign policy and regional and trans-regional equations. this can take advantages from other side. approach of russia to divergence and independence with the west will increase level of russian hegemony on international arena. the main questi...

This thesis provides an empirical analysis of the determinants of foreign direct investment in commercial real estate (FDIRE) in the U.S. We examine the major factors that affect levels of FDIRE in the U.S. and foreign investors’ location preferences. First, using panel data from 2002 to 2006, this research develops a model to test the importance of GDP, GDP growth, national investment level, e...