Capital controls, liberalizations, and foreign direct investement / Mihir A. Desai, C. Fritz Foley, James R. Hines Jr.
| Author/creator | Desai, Mihir A., 1968- |
| Other author | Foley, C. Fritz. |
| Other author | Hines, James R., Jr., 1958- |
| Other author | National Bureau of Economic Research. |
| Format | Electronic |
| Publication Info | Cambridge, MA : National Bureau of Economic Research, |
| Supplemental Content | Full text available from NBER Working Papers |
| Series | NBER working paper series ; working paper 10337 Working paper series (National Bureau of Economic Research : Online) ; working paper no. 10337. UNAUTHORIZED |
| 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. |
| General note | Title from PDF file as viewed on 1/19/2005. |
| Bibliography note | Includes bibliographical references. |
| Access restriction | Available only to authorized users. |
| Other forms | Also available in print. |
| Technical details | Mode of access: World Wide Web |
| Terms of use | 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 |
| Genre/form | Electronic books. |
| LCCN | 2005616038 |
Availability
| Library | Location | Call Number | Status | Item Actions |
|---|---|---|---|---|
| Electronic Resources | Access Content Online | ✔ Available |