Discussion of “Productivity and Taxes as Drivers of FDI”

by A. Razin and E. Sadkain Brookings Trade Forum, 2007.

Their theoretical work emphasizes how set-up costs at home and in the host country can drive a wedge between marginal and total profit conditions. This insight combines with a description of FDI decision-making that separates the decision to invest and how much to invest. 

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