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Book/Printed Material Capital controls, liberalizations, and foreign direct investement

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Title

  • Capital controls, liberalizations, and foreign direct investement

Summary

  • "Affiliate-level evidence indicates that American multinational firms circumvent capital controls by adjusting their reported intrafirm trade, affiliate profitability, and dividend repatriations. As a result, the reported profit impact of local capital controls is comparable to the effect of 24 percent higher corporate tax rates, and affiliates located in countries imposing capital controls are 9.8 percent more likely than other affiliates to remit dividends to parent companies. Multinational affiliates located in countries with capital controls face 5.4 percent higher interest rates on local borrowing than do affiliates of the same parent borrowing locally in countries without capital controls. Together, the costliness of avoidance and higher interest rates raise the cost of capital, significantly reducing the level of foreign direct investment. American affiliates are 13-16 percent smaller in countries with capital controls than they are in comparable countries without capital controls. These effects are reversed when countries liberalize their capital account restrictions"--National Bureau of Economic Research web site.

Names

  • Desai, Mihir A. (Mihir Arvind), 1968-
  • Foley, C. Fritz
  • Hines, James R., Jr., 1958-
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2004.

Notes

  • -  Title from PDF file as viewed on 1/19/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005616038

Rights Advisory

  • This is non-restricted, fully open content that may be accessed on and off of the Library of Congress campus, with no restrictions, by an unlimited number of users

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Desai, Mihir A, C. Fritz Foley, James R Hines, and National Bureau Of Economic Research. Capital Controls, Liberalizations, and Foreign Direct Investement. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. https://aj.sunback.homes/item/2005616038/.

APA citation style:

Desai, M. A., Foley, C. F., Hines, J. R. & National Bureau Of Economic Research. (2004) Capital Controls, Liberalizations, and Foreign Direct Investement. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005616038/.

MLA citation style:

Desai, Mihir A, et al. Capital Controls, Liberalizations, and Foreign Direct Investement. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005616038/>.