This research paper studies the likely effect of financial development on inward Foreign Direct Investment (FDI) in Middle East and North African (MENA) nations. Making use of yearly data for ten MENA developing countries from 1988 to 2015, the study finds significant positive influence of...

This paper assesses the impact of corporate taxation on multinational activity. A numerically solvable general equilibrium model of trade and multinational firms is used to incorporate the following components of corporate taxation: parent and host country statutory corporate tax rates,...

This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the European Monetary Union (EMU) to the ten countries that obtained EU membership in 2004. One-way and two-way error component gravity models are estimated using a dataset of unbalanced...

We analyse the nature of German trade-FDI linkages within the EU27 based on a simultaneous equation gravity approach for imports, exports, in- and outward FDI stocks. We adopt both a Hausman-Taylor (1981) IV approach (3SLS-GMM) and rival non-IV estimation (the system extension to the Fixed...

Policymakers in developing countries have increasingly pinned their hopes on bilateral investment treaties (BITs) in order to improve their chances in the worldwide competition for foreign direct investment (FDI). However, the effectiveness of BITs in inducing higher FDI inflows is still open to...

This paper investigates the benefits of banks' direct investment in foreign subsidiaries and branches for non-financial multinationals. The paper builds on the literature on international banks which has primarily focused on the implications for host countries, rather than for its international...

Leaders are critical to a country's success. They can influence domestic policy via specific measures that they enforce, and they can also influence international public opinion towards their country. Foreign Direct Investments are also essential for a country's economic growth. Our hypothesis...

Some theories on the determinants and the impacts of foreign direct investment (FDI) are reviewed and critically assessed. Two empirical investigations follow this review. The first uses simultaneous equation models to test the effects of some US macroeconomic variables on their FDI inflows. The...

We analyse the evolution of German Trade and FDI activity within the EU27 using a simultaneous equation gravity approach for imports, exports, in- and outward FDI stocks based on German regional data (NUTS1-level) for 1993-2005. Our approach seeks to explore the main long-run driving forces of...

The paper develops a new stand-alone structural gravity model for explaining bilateral FDI patterns. We employ the model to analyse the impact of preferential trade agreements (PTAs), bilateral investment treaties (BITs) and other policies on bilateral foreign direct investment (FDI). We use the...