The Financing of Foreign Direct Investment: A Study of the Determinants of Capital Flows in Multinational Enterprises (Bloomsbury Academic Collections: Economics)

Description

The Financing of Foreign Direct Investment examines the communication gap between business leaders and international economists when it comes to financing the overseas operations of domestic firms. Gilman argues that economists and business people have been speaking ‘two different languages' when it comes to these issues, and he explores the different positions adopted by economists and business people to provide a plausible explanation of the determinants of capital flows financing foreign direct investment that incorporates the main elements of both approaches. Cover Contents Dedication Acknowledgements Preface I: INTRODUCTION II: METHODOLOGY III: BACKGROUND TO THE DEVELOPMENT OF A THEORY The Study of Direct Investment as a Financial Phenomenon Financial Flows and the Balance of Payments Non-financial Investors in a Multiple Currency World Self-protection Against Exchange Risks IV: SCOPE OF THE PREVIOUS WORK Early Studies of Short-term Capital Movements Incorporation of Portfolio Adjustment into Macro-economic Models Problems in the Application of Portfolio Adjustment Models Application of Corporate Finance Theory to Portfolio Adjustment Business Literature on the Financing of Direct Investment The Notion of Exchange Rate Illusion V: CAPITAL FLOWS TO BE CONSIDERED VI: A THEORY OF THE FINANCING OF DIRECT INVESTMENT The Notion of Risk and the Financing of Foreign Operations An Aggregative Time-series Model VII: EMPIRICAL RESULTS Characteristics of the Data The Empirical Models Tested Aggregated Results Relevant Economic Background Institutional Factors Governmental Factors Macro-economic Factors Empirical Results for Individual Countries Belgium–Luxembourg Economic Union Canada France Germany Italy Netherlands United Kingdom VIII: CONCLUSION Bibliography Index A B C D E F G H I L M N P R S T U W