TY  - JOUR
AU  - Razin,Assaf
AU  - Sadka,Efraim
TI  - Gains from FDI Inflows with Incomplete Information
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9008
PY  - 2002
Y2  - June 2002
UR  - http://www.nber.org/papers/w9008
L1  - http://www.nber.org/papers/w9008.pdf
N1  - Author contact info:
Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu

Efraim Sadka
Tel Aviv University
Eitan Berglas School of Economics
P.O.B. 39040
Ramat Aviv, Tel Aviv, 69978, ISRAEL
E-Mail: sadka@post.tau.ac.il
AB  - 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.
ER  -