We study a multinational enterprise’s (MNE) choice of foreign direct investment (FDI) mode in a vertically related … unobservability of contract terms favor cross-border acquisition relative to greenfield investment. We also show that while a cross …-border acquisition reduces welfare, greenfield investment can be welfare-improving. These results suggest that policy should distinguish …

We test for pollution haven effects in outward foreign direct investment (FDI) for different sectors using a … comprehensive and exhaustive dataset for outward FDI from the Netherlands, one of the most environmentally stringent countries and a … major source of global FDI. Our evidence suggests that in the sectors natural resources extraction and refining …

investment (FDI). Using a unique dataset which allows us to observe the worldwide activities of a large panel of multinational …, compared with the unrestricted case, in the presence of a typical thin-capitalization rule, the tax-rate sensitivity of FDI is … level of FDI in high-tax countries. Regulations of transfer pricing, however, are not found to exert significant effects on …

regime increases worldwide FDI and raises the world interest rate. Distinguishing three groups of countries, we show that … income countries are likely to gain from increased inward FDI, whereas least developed countries lose because they receive … less FDI. Our results explain the stylized fact that a multilateral investment agreement was opposed by least developed …

between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology … introduction of productivity growth increases the likeliness of first time market entry through FDI. If the firm is confronted with … uncertain productivity growth, market entry through FDI increases even further. Uncertainty is identified as a compounding force …

many countries. This study presents evidence suggesting that attracting inflows of FDI offers potential for upgrading a … sectors treated by investment promotion agencies as priority in their efforts to attract FDI. The sample covers 116 countries … over the period 1984-2000. The findings are consistent with a positive effect of FDI on unit values of exports in …

finding is consistent with a (partial) capitalisation of taxes in the acquisition price when the FDI project takes the form of … M&A investments. Based on a novel firm-level dataset on German outbound FDI, we find evidence that location decisions of …

abroad by either horizontal or vertical FDI. Upon opening a market to trade, firms with the lowest productivity will exit … choose horizontal FDI. At a sector level, the more prone to fragmentation a sector is, the lower will be the ratio of exports … to FDI sales. …