Franklin

Policy Reform, Adjustment Costs, and Investment- with Activity of Local Investors As a Signal [electronic resource] Johnson, Omotunde E. G..

Author/Creator:
Johnson, Omotunde E. G.
Publication:
Washington, D.C. : International Monetary Fund, 1997.
Format/Description:
Government document
Book
1 online resource (21 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 97/148.
IMF Working Papers; Working Paper No. 97/148
Status/Location:
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Local subjects:
Diminishing returns. (search)
Direct investment. (search)
Domestic investment. (search)
Expected returns. (search)
Fdi. (search)
Foreign capital. (search)
Foreign capital flows. (search)
Foreign direct investment. (search)
Foreign direct investors. (search)
Foreign investment. (search)
Foreign investors. (search)
Host countries. (search)
Host country. (search)
International investment. (search)
Investment activity. (search)
Investment environment. (search)
Investment flows. (search)
Investment location decisions. (search)
Investment rate. (search)
Investment risks. (search)
Investors. (search)
Joint ventures. (search)
Private capital. (search)
Private investment. (search)
Private investor. (search)
Rate of return. (search)
Rates of return. (search)
Real rate of return. (search)
Reinvestment. (search)
Return on investment. (search)
Tax incentives. (search)
Hungary. (search)
Saint Lucia. (search)
Summary:
Adjustment assistance is provided to local investors responding to policy reform and facing adjustment costs, to facilitate their activity–a signal to foreign investors about the profitability of investing in the local economy. The government, in providing assistance, maximizes its utility subject to its budgetary constraint, taking into account the utility forgone in alternative uses of budgetary funds. Foreign investors use the signal to update beliefs about investors in the local economy and compute the expected return from investing in the country. The investment response of foreign investors depends on the expected return so computed relative to the expected returns in their alternative investments worldwide.
Notes:
Description based on print version record.
Contributor:
Johnson, Omotunde E. G.
Other format:
Print Version:
ISBN:
1451856784:
9781451856781
ISSN:
1018-5941
Publisher Number:
10.5089/9781451856781.001
Access Restriction:
Restricted for use by site license.