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-a-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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