FDI and investment barriers in developing economies
Data(s) |
21/11/2013
21/11/2013
01/11/2013
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Resumo |
Does investment liberalization in developing economies affect FDI decisions differently across individual firms? To address this question, we simulate the response of individual firms to reductions in investment costs across developing economies. We explore two policy experiments: elimination of setup-procedure requirements for foreign investors and a reduction in corporate tax rates on foreign-owned multinationals. We find that a relaxing of discriminatory foreign investment procedures induces middle productive firms to increase their entry and production in developing economies substantially, but the most productive firms to expand moderately. Multinationals expand their entry and production in developing economies more substantially following a decline in entry barriers than following a decrease in corporate tax rates. |
Identificador |
IDE Discussion Paper. No. 431. 2013. 11 http://hdl.handle.net/2344/1283 IDE Discussion Paper 431 |
Idioma(s) |
en eng |
Publicador |
Institute of Developing Economies, JETRO 日本貿易振興機構アジア経済研究所 |
Palavras-Chave | #Developing countries #Foreign investments #International business enterprises #FDI #Firm heterogeneity #Investment liberalization #338.92 #C Developing countries 発展途上国 #C68 - Computable General Equilibrium Models #F21 - International Investment; #F23 - Multinational Firms; International Business #O2 - Development Planning and Policy |
Tipo |
Working Paper Technical Report |