Foreign direct investment plays an important role in the economic development of the country. It helps in transferring of financial resources, technology and innovative and improved management techniques along with raising productivity. An Indian company may receive Foreign Direct Investment either through automatic route or government route. The paper tries to study the need of FDI in India, t...

The paper analyzes “subsidy games” between countries in order to attract foreign direct investment (FDI) from a third country. The winner of this game results from the interaction of two factors, relative country size and employment gains from FDI: a large (or “central”) country is more likely to attract FDI, and so is a country with high unemployment. The subsidy equilibrium is compared with t...

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Stylized evidence indicates that democracies and autocracies both expropriate foreign direct investment but that democracies do so less frequently. What explains the similarities and differences in expropriation between regime types? An analysis of actual expropriation acts in 63 developing countries from 1960 to 1990 shows that democracies are most likely to expropriate foreign investment when...

We use a new firm level data set which establishes the location, ownership, and activity of 650,000 multinational subsidiaries—close to a comprehensive picture of global multinational activity—. A number of patterns emerge from the data. Most foreign direct investment (FDI) occurs between rich countries. The share of vertical FDI (subsidiaries which provide inputs to their parent firms) is larg...

This study deals with foreign direct investment and its impact on economic growth in the context of Bangladesh. The main objective of our study is to evaluate the impact of FDI on the economy of Bangladesh based on the secondary data covering year 2013-2017. This study considers FDI as a dependent variable and GDP, export and investment as independent variables and is used as the indicators of ...

Foreign Direct Investment (FDI) is frequently regarded as a key driver of global economic integration because it brings job opportunities, capital investment, and business experience. The current study examines the impact of foreign direct investment on Afghanistan's economic growth using time-series data from 2007 to 2019, which are collected from the World Bank and the International Monetary ...

In this paper, an examination is made of the linkage between foreign direct investment and productivity in eight East Asian economies–China, Hong Kong SAR, Indonesia, Malaysia, Republic of Korea, Singapore, Taiwan Province of China and Thailand. The Granger causality test and the Toda-Yamamoto version of the Granger causality test are used to test if inflows of foreign direct investment “cause”...

We develop a model of foreign operations to determine a parent firm’s choice between wholly owned subsidiaries and joint ventures (and the degree of equity participation in the latter case). We introduce capital market imperfections into the model to capture a positive effect of the firm’s net worth on investment; this effect plays an important role in determining organization forms because the...