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.
権利
Copyrights 日本貿易振興機構（ジェトロ）アジア経済研究所 / Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO) http://www.ide.go.jp
雑誌名
IDE Discussion Paper
雑誌名(英)
IDE Discussion Paper
巻
431
発行年
2013-11-01
出版者
Institute of Developing Economies (IDE-JETRO)
著者版フラグ
publisher
日本十進分類法
338.92
JEL分類
JEL:C68 - Computable General Equilibrium Models
JEL:F21 - International Investment;
JEL:F23 - Multinational Firms; International Business
JEL:O2 - Development Planning and Policy
地域/国名
発展途上国
キーワード(LSH)
Developing countries
Foreign investments
International business enterprises
FDI
Firm heterogeneity
Investment liberalization
FDI and investment barriers in developing economies
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