@techreport{NBERw9008,
 title = "Gains from FDI Inflows with Incomplete Information",
 author = "Assaf Razin and Efraim Sadka",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9008",
 year = "2002",
 month = "June",
 URL = "http://www.nber.org/papers/w9008",
 abstract = {The paper develops an international macroeconomic model of FDI flows with a unique feature: a hands-on management ability to react in real time to changing economic environments. Anticipating this advantage, foreign direct investors can outbid other investors in a certain industry in which they specialize in the source country. The model can explain both two-way FDI flows among developed countries and one-way FDI flows from developed to developing country. The unique gains from FDI to the host country stem from the increased eciency of domestic investment.},
}