This paper examines the importance of agglomeration economies and institutions vis-à-vis initial conditions and factor endowments in explaining the locational choice of foreign investors. Using a unique panel data set for 25 transition economies between 1990 and 1998, we find that the main...

As all the Southern and Eastern Mediterranean countries, Morocco has been engaged into euro-mediterranean agreements to increase international investors trust. Another objective was to influence Multinational firms localisation choices,, as these firms are seen to be the main way to develop...

We examine how relational contracting in credit and investment relationships is affected by the potential expropriation of funds. We implement credit relationships in which repayment is not third-party enforceable, i.e. borrowers can default on their loans. In our main treatment the borrower can...

The main purpose of this paper is to assess the impact of financial market development on Foreign Direct Investment (FDI) in Latin American countries. Financial market development and FDI are two important sources of efficient economic resource allocation in the region. We use banking sector and...

The capital flows network has changed substantially, bringing new investors and target economies into play. Related, a recent intensification of capital flows to low income countries (LICs) has posed a number of questions. Most importantly, the very nature of those flows and important factors...

Foreign direct investments are generally considered as one of the factors with positive influence on the economic development of countries in which this investments flow. In evaluating the impact of foreign direct investment on development, however, a key question is whether foreign direct...

Financial flows to East Asia have changed markedly in size and composition over the last decade. Foreign direct investment now dominates capital inflows with new foreign bank lending and portfolio investment remaining subdued. Foreign direct investment to China has grown rapidly since the early...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries?...

This thesis examines the impact of institutions, especially the financial institutions, on international trade and foreign direct investments. The first four chapters study the financial institutions and their impact on trade and international specialization. Specifically, the first chapter...

Generally, it is not possible for a developing country like India to grow without sufficient import of capital because of the gaps exist in domestic savings and capital requirements. During the initial stages of development, domestic savings are normally not adequate to finance the development...