We examine the effect of uncertainty on foreign direct investment inflows for a heterogeneous sample of advanced … for both global and local factors, we find policy uncertainty has discernable and significant effects on inflows, but … uncertainty that seems to matter the most, but rather global uncertainty. Additionally, we find that high levels of uncertainty …

We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

We evaluate the 2017 Tax Cuts and Jobs Act. Combining reduced-form estimates from tax data with a global investment … model, we estimate responses, identify parameters, and conduct counterfactuals. Domestic investment of firms with the mean ….S. multinationals rises substantially. These incentives also boost domestic investment, indicating complementarity between domestic and …

Capital income tax policy affects investment by the parent and affiliates of multinational corporations (MNCs). In a … model in which technical advances are embodied in new capital, investment will translate directly into productivity gains … 1992, due to productivity growth in MNCs with Canadian affiliates; (3) the investment elasticity of productivity growth is …

Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income … productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio … stakeholders. We emphasize the crucial role played by FDI in sustaining equity-financed capital investment for economies plagued by …

This paper studies the investment creation and diversion effects of the EU's Single Market programme (EU92). We first … present empirical evidence which suggests that EU92 caused investment diversion in the European Free Trade Association (EFTA …) nations and investment creation in the EU. The economic logic behind this is simple. Discriminatory liberalization shifts …

strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location … of investment - foreign trade zones and labor subsidies. We use simulations to explore the impact these policies had on … the geographic distribution of Japanese investment. The simulations reveal that in aggregate promotion programs largely …

This paper extends previous research on the effect of investment on labor productivity at the country level by … accounting for investment in R&D, as well as for investment in fixed and human capital. Privately-funded R&D investment is found … social (national) rate of return to private R&D investment is about seven times as large as the return to investment in …

not affect prices, they earn higher expected returns than do rational investors with similar degrees of risk aversion … traders come to dominate the market despite the fact that they take excessive risk that skews the distribution of their long …