The Effect Of Capital Controls On Foreign Direct Investment Decisions Under Country Risk With Intangible Assets

Author : Kinga Z. Elo
Publisher : International Monetary Fund
Page : 68 pages
File Size : 40,9 Mb
Release : 2007-04
Category : Business & Economics
ISBN : UCSD:31822034594036

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The Effect of Capital Controls on Foreign Direct Investment Decisions Under Country Risk with Intangible Assets by Kinga Z. Elo Pdf

This paper examines how capital controls affect FDI decisions and how the impact of these restrictive measures varies with different levels of country risk. We construct a model of firms' FDI decisions, broadly in Dunning's "eclectic theory" framework, using "real options" to emphasize economic uncertainty and country risk. Numerical results of the model take the form of "quality statistics" that uncover the underlying dynamics hidden in the aggregate data that is responsible for the low performance of recent empirical studies. We find that increasing levels of capital controls reduce the life-span of FDI investments at each level of country risk and foreign investors' willingness towards risk sharing increases. We reveal a significant interaction between capital control and country risk, resulting in a nonlinear relationship between these and the volatility and volume statistics. We estimate a standard cross-sectional model that provides strong support for our theoretical findings.

Author : Ms.Inci Ötker,Mr.Akira Ariyoshi,Mr.Jorge Iván Canales Kriljenko,Mr.Karl Friedrich Habermeier,Mr.Andrei Kirilenko,Mr.Bernard Laurens
Publisher : International Monetary Fund
Page : 135 pages
File Size : 55,7 Mb
Release : 2000-05-17
Category : Business & Economics
ISBN : 9781557758743

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Capital Controls by Ms.Inci Ötker,Mr.Akira Ariyoshi,Mr.Jorge Iván Canales Kriljenko,Mr.Karl Friedrich Habermeier,Mr.Andrei Kirilenko,Mr.Bernard Laurens Pdf

This paper examines country experiences with the use and liberalization of capital controls to develop a deeper understanding of the role of capital controls in coping with volatile capital flows, as well as the issues surrounding their liberalization. Detailed analyses of country cases aim to shed light on the motivations to limit capital flows; the role the controls may have played in coping with particular situations, including in financial crises and in limiting short-term inflows; the nature and design of the controls; and their effectivenes and potential costs. The paper also examines the link between prudential policies and capital controls and illstrates the ways in which better prudential practices and accelerated financial reforms could address the risks in cross-border capital transactions.

Author : C. White,M. Fan
Publisher : Springer
Page : 265 pages
File Size : 49,9 Mb
Release : 2006-01-25
Category : Business & Economics
ISBN : 9780230624832

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Risk and Foreign Direct Investment by C. White,M. Fan Pdf

Incorporating an accurate measure of risk is important to the appraisal of an international investment. This book examines and recommends how decisions on international investment projects are made. Critiquing and integrating existing theory, it shows how risk can be incorporated into the present value formula produce a clear decision rule.

Author : World Bank World Bank
Publisher : World Bank Publications
Page : 147 pages
File Size : 43,9 Mb
Release : 2014-05-13
Category : Business & Economics
ISBN : 9781464802966

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East Asia and Pacific Economic Update April 2014 by World Bank World Bank Pdf

Developing countries in the East Asia Pacific region will see stable economic growth this year, bolstered by a recovery in high-income economies and the market’s modest response so far to the Federal Reserve’s tapering of its quantitative easing, according to the East Asia Pacific Economic Update. Developing East Asia will grow by 7.1 percent this year, largely unchanged from 2013, the report says. As a result, East Asia remains the fastest growing region in the world, despite a slowdown from the average growth rate of 8.0 percent from 2009 to 2013. In China, growth will ease slightly, to 7.6 percent this year from 7.7 percent in 2013. Excluding China, the developing countries in the region will grow by 5.0 percent, slightly down from 5.2 percent last year.

Author : Mr.Martin Schindler,Mahir Binici,Michael M. Hutchison
Publisher : International Monetary Fund
Page : 34 pages
File Size : 53,8 Mb
Release : 2009-09-01
Category : Business & Economics
ISBN : 9781451873559

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Controlling Capital? Legal Restrictions and the Asset Composition of International Financial Flows by Mr.Martin Schindler,Mahir Binici,Michael M. Hutchison Pdf

How effective are capital account restrictions? We provide new answers based on a novel panel data set of capital controls, disaggregated by asset class and by inflows/outflows, covering 74 countries during 1995-2005. We find the estimated effects of capital controls to vary markedly across the types of capital controls, both by asset categories, by the direction of flows, and across countries' income levels. In particular, both debt and equity controls can substantially reduce outflows, with little effect on capital inflows, but only high-income countries appear able to effectively impose debt (outflow) controls. The results imply that capital controls can affect both the volume and the composition of capital flows.

Author : OECD
Publisher : OECD Publishing
Page : 51 pages
File Size : 45,8 Mb
Release : 1996-11-03
Category : Electronic
ISBN : 9789264064805

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OECD Benchmark Definition of Foreign Direct Investment Third Edition by OECD Pdf

ThIS Third Edition of the OECD Benchmark Definition, fully consistent with the IMF Balance of Payments Manual, provides operational guidance on how FDI data should be compiled to meet internationally agreed standards.

Author : Mr.Donald J. Mathieson,Liliana Rojas-Suárez
Publisher : International Monetary Fund
Page : 68 pages
File Size : 47,7 Mb
Release : 1992-06
Category : Business & Economics
ISBN : UCSD:31822008121584

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Liberalization of the Capital Account by Mr.Donald J. Mathieson,Liliana Rojas-Suárez Pdf

This paper reviews the experience with capital controls in industrial and developing countries, considers the policy issues raised when the effectiveness of capital controls diminishes, examines the medium-term benefits and costs of an open capital account, and analyzes the policy measures that could help sustain capital account convertibility. As the effectiveness of capital controls eroded more rapidly in the 1980s than in earlier periods, new constraints were placed on the formulation of stabilization and structural reform programs. However, experience suggests that certain macroeconomic, financial, and risk management policies would allow countries to attain the benefits of capital account convertibility and reduce the financial risks created by an open capital account.

Author : Jörg Stosberg
Publisher : Unknown
Page : 342 pages
File Size : 45,5 Mb
Release : 2018
Category : Electronic
ISBN : OCLC:1286343403

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Political Risk and the Institutional Environment for Foreign Direct Investment in Latin America by Jörg Stosberg Pdf

The intensification of capital flows is an important characteristic of globalization. Attracting foreign direct investment is a viable way of ensuring the external financing of developing countries. Foreign direct investment flows, in turn, are determined by the decisions of multinational enterprises. One important determinant of investment decisions is the political environment of potential host countries. Political risks like expropriations, riots, revolutions or civil wars are important obstacles for investment. This book empirically analyzes the impact of political risks on foreign direct investment flows to Latin American countries. A case study of Mexico and its policy towards foreign investors offers further empirical evidence for the importance of the political environment for investment decisions of multinationals.

Author : Anonim
Publisher : Unknown
Page : 428 pages
File Size : 41,6 Mb
Release : 2007
Category : Arbitration and award, International
ISBN : IND:30000117318109

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The Journal of World Investment & Trade by Anonim Pdf

Author : OECD
Publisher : OECD Publishing
Page : 241 pages
File Size : 40,9 Mb
Release : 2009-10-15
Category : Electronic
ISBN : 9789264045743

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OECD Benchmark Definition of Foreign Direct Investment 2008 Fourth Edition by OECD Pdf

The OECD Benchmark Definition of Foreign Direct Investment sets the world standard for FDI statistics. It provides a single point of reference for statisticians and users on all aspect of FDI statistics, while remaining compatible with other internationally accepted statistical standards.

Author : Anonim
Publisher : Unknown
Page : 218 pages
File Size : 53,7 Mb
Release : 2004
Category : International finance
ISBN : UCBK:C094036110

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IMF Research Bulletin by Anonim Pdf

Author : Laura Gómez-Mera,Thomas Kenyon,Yotam Margalit,José Guilherme Reis,Gonzalo Varela
Publisher : World Bank Publications
Page : 115 pages
File Size : 40,8 Mb
Release : 2014-12-03
Category : Business & Economics
ISBN : 9781464803727

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New Voices in Investment by Laura Gómez-Mera,Thomas Kenyon,Yotam Margalit,José Guilherme Reis,Gonzalo Varela Pdf

This study analyzes the characteristics, motivations, strategies, and needs of FDI from emerging markets. It draws from a survey of investors and potential investors in Brazil, India, South Korea, and South Africa.

Author : I. Moosa
Publisher : Springer
Page : 311 pages
File Size : 45,5 Mb
Release : 2002-01-29
Category : Business & Economics
ISBN : 9781403907493

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Foreign Direct Investment by I. Moosa Pdf

Foreign direct investment is an important issue that has attracted the attention of academic and professional economists as well as politicians and policy makers. In Foreign Direct Investment , Imad A. Moosa presents a survey of the vast body of literature and ideas relating to foreign direct investment that will be invaluable as a reference work for all these groups. He provides concise definition and analysis of the theories behind foreign direct investment, and considers factors affecting its implementation. The impact of foreign direct investment on economic development, host countries and the growth of multinationals, together with methods for evaluating foreign direct investment projects are discussed. The book is based on the experiences of and the empirical evidence pertaining to foreign direct investment in a large number of countries, and includes case studies on specific projects.

Author : Anonim
Publisher : Unknown
Page : 68 pages
File Size : 54,8 Mb
Release : 1998
Category : Competition, International
ISBN : UCSD:31822025979253

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Implications for U.S. Trade and Competitiveness of a Broad-based Consumption Tax by Anonim Pdf

Author : Anonim
Publisher : DIANE Publishing
Page : 55 pages
File Size : 54,9 Mb
Release : 2024-07-04
Category : Electronic
ISBN : 9781457825132

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Implications for U.S. Trade and Competitiveness of a Broad Based Consumption Tax, Inv. 332-389 by Anonim Pdf