using firm-level panel data for korean mnes, we make a distinction between being the only affiliate of a parent firm and being the one of the multiple affiliates of a parent firm. comparisons of correlations between purchases and sales of each group of the foreign affiliates show distinctive difference in the motivations of fdi and the multinational activities, due to the difference in the numb...

the foreign direct investment is a growth and development factor. today majority of countries will attract foreign capitals. but multinational companies perform investment in the political stability conditions. the political risk is dissuasive factor for foreign direct investment. in such qualification can suitable “political risk insurance” and help to developing countries for attract foreign ...

This paper empirically assesses United States direct investment in the European Union. In that respect, market size, growth rate, labor costs, export flows and tariff barriers have already been shown to influence U.S. foreign direct investment in the European Union. The present paper enlarges the field of knowledge on the matter by: (i) exploring the impact of two locational determinants of for...

  This is undoubtedly recognized that economic performance for each country over time is related to a great extent to its political, institutional and legal environment. In fact, these institutions and policies are that determine the governance quality.   In a panel data study, we applied newly developed indices to examine the effects of good governance on FDI for fifteen middle-income countri...

The paper analyzes the effects of a regionally coordinated profit tax in a model with three active countries, one of which is not part of the union, and a globally mobile firm. We show that regional tax coordination can lead to two types of welfare gains. First, for investments that would take place in the region in the absence of coordination, this measure can transfer location rents from the ...

This paper, to our knowledge, is the first examine herding in foreign direct investment (FDI). We investigate it from two perspectives, number of countries investing host country and then dollar volumes those investments. Our results provide strong evidence FDI. also show divestures these investors. that FDI related characteristics governance parameters.