Chanelling Domestic Saving into Productive Investment Under Asymmetric Information: The Essential Role of Foreign Direct Investment

Assaf Razin, Efraim Sadka and C.W. Yuen

Working Papers from Tel Aviv

Abstract: Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income countries with insufficiently developed capital markets. This paper analyzes the problem of channelling domestic savings into productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio stakeholders.

Keywords: FOREIGN INVESTMENTS; SAVINGS; CAPITAL MARKET (search for similar items in EconPapers)
JEL-codes: E20 G10 O16 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1997
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Related works:
Working Paper: Channelling Domestic Savings into Productive Investment Under Asymmetric Information: The Essential Role of Foreign Direct Investment (1998)
Working Paper: Channelling Domestic Savings into Productive Investment Under Asymmetric Information: The Essential Role of Foreign Direct Investment (1998)
Working Paper: Channelling Domestic Savings Into Productive Investment Under Asymmetric Information: The Essential Role of Foreign Direct Investment (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:teavfo:36-97

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