Debt v . Foreign Direct Investment
The Impact of Sovereign Risk on the Structure of International Capital Flows
Bibliographic Data
| ID | 9728393 |
|---|---|
| Authors | Monika Schnitzer (0000-0002-6905-466X, Center for Economic and Policy Research, corresponding author) |
| Year | 2002 |
| Volume | 69 |
| Issue | 273 |
| Pages | 41-67 |
| Publication date | 2002-02-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.00270 |
| OpenAlex | W3122852685 |
| Language | DE |
| Citations received | 4 |
| References cited | 3 |
The paper compares the two standard forms of international investment in developing countries, debt and foreign direct investment (FDI), from a finance perspective. The sovereign risks associated with debt finance are shown to be generally less severe than the ones that come with FDI. FDI is chosen only if the foreign investor is more efficient in running the project, if the project is risky, and if the foreign investor has a good outside option which deters creeping expropriation. The sovereign risk problem of FDI can be alleviated if the host country and the foreign investor form a joint venture
Business · Debt · Economics · Expropriation · External debt · Financial system · Foreign direct investment · International economics · Macroeconomics · Market economy · Monetary economics · Finance · Global Financial Crisis and Policies · International Arbitration and Investment Law · State Capitalism and Financial Governance
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,2 |
| Citation span | 2006 - 2023 (18) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 4 |