Foreign direct investment vs. foreign portfolio investment
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Foreign direct investment vs. foreign portfolio investment by Itay Goldstein

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Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

Subjects:

  • Investments, Foreign -- Mathematical models.,
  • Portfolio management -- Mathematical models.

Book details:

Edition Notes

Other titlesForeign direct investment versus foreign portfolio investment
StatementItay Goldstein, Assaf Razin.
SeriesNBER working paper series ;, working paper 11047, Working paper series (National Bureau of Economic Research : Online) ;, working paper no. 11047.
ContributionsRazin, Assaf., National Bureau of Economic Research.
Classifications
LC ClassificationsHB1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3476657M
LC Control Number2005616186

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Foreign Direct Investment vs. Portfolio Investment. The differences between foreign direct investment (FDI) and portfolio buying are many. In fact, the two have little in common except they take place across national borders. In both cases, money is flowing overseas to take advantage of a certain goods, such as labor. FDI (foreign direct investment) and FPI (foreign portfolio investment) have become the major economic drivers of globalization in recent decades, as a heated debate, they are increasingly drawing many individuals’ attentions to know about it in contemporary ing to the IMF (),’FDI refers to an investment made to acquire lasting interest in enterprises operating outside of. Downloadable (with restrictions)! Abstract We examine the effect of a country’s governance environment on the foreign investment it attracts. We classify countries based on the dominant mode of governance into three types: (1) rule-based (strong public rule of law), (2) relation-based (weak rule of law and strong informal networks), and (3) family-based (absence of both public rules and Cited by: Foreign Direct Investments (FDI) vs. Foreign Portfolio Investment (FPI) (c) Portfolio investors due to their short-term perspective may indulge into speculative activities in the domestic financial market and may cause problems for the domestic investors. (d) FDIs are directly managed by foreign owners FPI on the other hand are managed by.

FDI stands for Foreign Direct Investment, and FPI stands for Foreign Portfolio Investment. It is interesting to analyze the FDI vs. FPI debate talking place form a long time in the investment industry. Foreign investments via FDI and FPI are also crucial to boost the economic growth and employment opportunities to the host country.   Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are the two important forms of foreign capital. The real difference between the two is that while FDI aims to take control of the company in which investment is made, FPI aims to reap profits by investing in shares and bonds of the invested entity without controlling the company. Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) provide strong economic impetus to a country. With increase in globalization, FDI and FPI are crucial to improve the economic standards and private sectors of a country. in particular foreign direct investment (FDI) and foreign portfolio investment (FPI), their characteristics, determinants and contribution to development. A first chapter will consider statistical problems related to the questions of definition, sources of data and analysis of the relative importance of the two major investment flows fo rFile Size: KB.

The paper develops a model of foreign direct investments (FDI) and foreign portfolio investments (FPI). FDI is characterized by hands-on management style which enables the owner to obtain relatively refined information about the productivity of the firm. This superiority, relative to FPI, Cited by: Foreign Direct investment vs. Foreign Portfolio investment was negatively affected by the announcement of its foreign investment in a country with ambiguous property rights. Globerman and. Foreign direct investment is the purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control. Portfolio investment does not involve obtaining a degree of control in a company. Downloadable! The paper develops a model of foreign direct investments (FDI) and foreign portfolio investments (FPI). FDI is characterized by hands-on management style which enables the owner to obtain relatively refined information about the productivity of the firm. This superiority, relative to FPI, comes with a cost: a firm owned by the relatively well-informed FDI investor has a low.