This paper develops a theoretical model of equity composition in foreign direct investment (FDI) projects and applies it empirically to examine the role of firm, industry, and country characteristics in ownership structure. The results show that in choosing the ownership structure, foreign...

We consider performance contracts with firm private information. The verifiable components of the contract, an up-front wage and employment, may serve both as a signal and a performance incentive. Job rent may be necessary for signaling and, since efficient signaling is multidimensional, there...

SUMMARY This paper develops a long‐run output relation for a major oil‐exporting economy where the oil income‐to‐output ratio remains sufficiently high over a prolonged period. It extends the stochastic growth model developed in Binder and Pesaran (1999) by including oil exports as an...

The following section are included:IntroductionThe FrameworkSocial Order and Economic Conditions in Iran in Early 20th CenturyTransformation of Social Order under Reza ShahEconomic and Political Change under Mohammad-Reza ShahFormation of the Islamic Republic under Ayatollah...

Economists have long relied on cross-country regression analysis to identify the determinants of continued growth, but with only limited success. This book demonstrates the value of a different approach.