Foreign Direct Investment Analysis of Aggregate Flows

Download Foreign Direct Investment Analysis of Aggregate Flows book free online – from Foreign Direct Investment Analysis of Aggregate Flows book; This book provides a treatise of the unique features of FDI flows, covering both theory and data. It focuses on the determinants of the aggregate flows of FDI at the source-host country level. The book is likely to find its main readership among academics, graduate students, and trained policy professionals.

Economists tend to favor the free flow of capital across national borders, because it allows capital to seek out the highest rate of return. They also offer several other advantages . First, they reduce the risk faced by owners of capital by allowing them to diversify their lending and investment. Second, the global integration of capital markets can contribute to the spread of best practices in corporate governance, accounting standards, and legal traditions. Third, the global mobility of capital limits the ability of governments to pursue bad policies.

Capital can flow across countries in a variety of ways. One can distinguish among three major ones: foreign direct investment (FDI), foreign portfolio investment and loans. Among all these types, FDI, which involves a lasting interest and control, stands out. The world flows of FDI rose about sevenfold (in current U.S. dollars) over the 1990ís; the vast majority is flowed between developed countries, but there are recently increased flows into emerging markets.

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