Institutions that fail to protect citizens against expropriation from the government hinder investment and economic development. How do economic agents counteract these institutions? I propose a theory of companies establishing connections with politicians as a mechanism to protect property rights and increase investment. I build a model in which N companies face a sector-level threat of exprop...

This paper develops a unified framework to analyze the dynamics of firm investment in countries with poor legal enforcement. The firm’s technology edge over the government generates endogenous property rights. Industry variation in the technology gap predicts a sectoral pecking-order of expropriations. Long-run investment distortions may be Pareto superior relative to persistent investment at t...

Prompted partly by the legislation of the Clinger-Cohen Act of 1996, public sector agencies are gradually adopting a more value-oriented approach for making IT investments. In order to comprehend this relatively new phenomenon in the public sector, we propose a conceptual framework that points out the types of value that matter in government IT investment decisions and explains what factors gen...

Although analysts have explored many facets of economic growth of Korea over the last decades, infrastructure investment policies have been discussed in terms of a simple developmental state framework that emphasizes the role of bureaucracy. This paper claims that infrastructure investment is a function of interactive processes affected by demand, supply, politics, and administrative reaction. ...

We report on a set of 40 semi-structured interviews with information security executives and managers at a variety of firms and government agencies. The purpose of the interviews was to learn more about how organizations make cybersecurity investment decisions: how much support they receive to execute their mission, how they prioritize which threats to defend against, and how they choose betwee...

making capital and investment is the main driving forces of economic development. based on the investment sensitivity to the changes of some of macro-economic variables and risk and uncertainty, the present study evaluated the effective factors on investment in private sector in iran during 1980-2007. at first, the uncertainty variables of real informal exchange rate, nominal interest rate and ...

The objective of this research paper is to examine the effects of various economic factors on Foreign Direct Investment (FDI) inflow into Pakistan. For econometric analysis secondary data ranging from 1971 to 2005 have been used. Log linear regression model and the method of Least Square were used as an analytical tool for the empirical estimation. In addition, for time series data analysis Aug...

We characterize optimal taxation of foreign capital and optimal sovereign debt policy in a small open economy where the government cannot commit to policy, seeks to insure a risk averse domestic constituency, and is more impatient than the market. Optimal policy generates long-run cycles in both sovereign debt and foreign direct investment in an environment in which the first best capital stock...