Bilateral FDI flows
threshold barriers and productivity shocks
Edición de la obra Bilateral FDI flows
| Autor | Assaf Razin |
|---|---|
| Editorial | National Bureau of Economic Research |
| Fecha de publicación | 2005 |
| Lugar | Cambridge, MA |
| Idioma | inglés |
| Formato | Electronic resource |
| LCCN | 2005620328 |
| Serie | NBER working paper series ; · working paper 11639 · Working paper series (National Bureau of Economic Research : Online) ; |
| Número de Cutter | R278b |
"A positive productivity shock in the host country tends typically to increase the volume of the desired FDI flows to the host country, through the standard marginal profitability effect. But, at the same time, such a shock may lower the likelihood of making any new FDI flows by the source country, through a total profitability effect, derived from the a general-equilibrium increase in domestic input prices. This is the gist of the theory that we develop in the paper. For a sample of 62 OECD and Non-OECD countries over the period 1987-2000, we provide supporting evidence for the existence of such conflicting effects of productivity change on bilateral FDI flows. We also uncover sizeable threshold barriers in our data set and link the analysis to the Lucas Paradox"--National Bureau of Economic Research web site.