We investigate how multinational companies can foster economic development of the host country at the micro level. Traditionally the empirical literature measuring spillovers to the host economy arising from foreign direct investment has focused on productivity spillovers, i.e., technological...

The paper augments the asymmetric information literature on bank lending to new ventures by focusing on the more neglected area of moral hazard; specifically the relationship between risk aversion, an entrepreneur.s wealth and the provision of collateral. The results highlight some interesting...