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The paper surveys theories of FDI and supporting evidence. A new theory flashes out a unique feature of FDI: hands on … firms. The implications of the theory are that investment is both more efficient (namely, made dependent on the firm …-specific productivity) and, in plausible cases, also larger. The theory can explain both two way flows of FDI among developed economies, and …
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Note: The following is a description of the paper and not the actual abstract as it appeared in the print journal. I study the pollution control problem faced by an imperfectly informed supra-national governmental authority (SNGA) that wants to design an international environmental agreement...
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In the 1992 Rio Earth Summit, developing countries (DC's) were adamant that in order to protect the environment for the future, new institutions were needed which would channel resources from the wealthy developed countries to the poor DC's. With this backdrop, I analyze the problem faced by an...
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