Cover -- Title -- Copyright -- Contents -- List of Figures -- List of Tables -- Preface -- 1 Overview -- 1.1 Channels of International Capital Flows -- 1.2 Micro-Level Studies -- 1.3 Macro-Finance Studies -- 1.4 Scope and Purpose -- 1.4.1 Bilateral FDI Flows -- 1.4.2 Roadmap -- Part I. Foreign Direct Investors and Liquidity Shocks -- 2 Foreign Direct Investment and Foreign Portfolio Investment: Theory -- 2.1 Introduction -- 2.2 The Model -- 2.3 Ex-Ante Choice between FDI and FPI -- 2.4 Market Equilibrium -- 2.5 Extension: Aggregate Liquidity Shocks -- 2.6 Conclusion -- Appendix 2A: Derivation of Figure 2.1 -- 3 Foreign Direct Investment and Foreign Portfolio Investment: Evidence -- 3.1 Introduction -- 3.2 Data -- 3.3 The Econometric Model -- 3.4 Results -- 3.5 Conclusion -- Part II. Foreign Direct Investment with Threshold Barriers: Theory -- 4 Foreign versus Domestic Direct Investment: Cream-Skimming -- 4.1 Introduction -- 4.2 FDI and Skimming High-Productivity Firms -- 4.3 FPI Inflows versus FDI Inflows -- 4.4 Conclusion -- 5 FDI Flows with Endogenous Domestic Wages: Heterogeneous Firms -- 5.1 Introduction -- 5.2 Wage Determination -- 5.3 M&A and Greenfield Investments -- 5.4 Conclusion -- Appendix 5A.1 Some Comparable Statics Derivations -- Appendix 5A.2 Reconciliation of the International Flow Paradox according to Lucas -- 6 Country-Specific Aggregate Shocks: Representative Firm -- 6.1 Introduction -- 6.2 Country-Specific Productivity Shocks -- 6.3 Conflicting Effects of Source- and Host-Country Productivity Shocks -- 6.4 Conclusion -- Part III. Foreign Direct Investment with Threshold Barriers: Empirics -- 7 Overview of the Econometric Equations -- 7.1 Introduction -- 7.2 The Heckman Selection Model -- 7.3 The Tobit Model -- 7.4 Conclusion -- 8 Application to a Baseline Sample: OLS, Tobit, and the Heckman Selection Models -- 8.1 Introduction.

8.2 Data and Variables -- 8.3 Estimation -- 8.4 Evidence for Fixed Costs -- 8.5 Conclusion -- 9 Productivity Shocks -- 9.1 Introduction -- 9.2 Data -- 9.3 Empirical Evidence -- 9.4 Conclusion -- 10 Source and Host Corporate Tax Rates -- 10.1 Introduction -- 10.2 Source and Host Taxation -- 10.3 Empirical Evidence -- 10.4 Conclusion -- Appendix 10A: Basic Principles of International Taxation of Capital Income -- Part IV. Policy in a Globalized Economy -- 11 Tax Competition and Coordination -- 11.1 Introduction -- 11.2 A Source-Host Country Model of Taxes and Public Goods -- 11.3 Tax Competition -- 11.4 Tax Coordination -- 11.5 Conclusion -- Epilogue -- Notes -- Bibliography -- Index -- A -- B -- C -- D -- E -- F -- G -- H -- I -- J -- K -- L -- M -- N -- O -- P -- R -- S -- T -- U -- V -- W -- Z.

The 1990s saw global flows of foreign direct investment increase some sevenfold, spurring economists to explore FDI from a micro- or trade-based perspective. Foreign Direct Investment is one of the first books to analyze the macroeconomics of FDI, treating FDI as a unique form of international capital flow between specific pairs of countries. By examining the determinants of the aggregate flows of FDI at the bilateral, source-host-country level, Assaf Razin and Efraim Sadka present the first systematic global analysis of the singular features of FDI flows. Drawing on a wealth of fresh data, they provide new theoretical models and empirical techniques that illuminate the vital country-pair characteristics that drive these flows. Uniquely, Foreign Direct Investment examines FDI between developed and developing countries, and not just between developed countries. Among many other insights, the book shows that tax competition vis-à-vis FDI need not lead to a "race to the bottom." Foreign Direct Investment is an essential resource for graduate students, academics, and policy professionals.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.