Principal-agent problems between corporate parent and subsidiary operations are frequently exacerbated in international settings by exchange rate fluctuations between the foreign subsidiary’s local currency and the multinational corporation’s (“MNC”) reference currency. This article develops a conceptual solution to resolve this international control conundrum using an Economic Value Added (“EV...

The goal of this article is the analysis of Ahmadinejad government's foreign policy according to the critical theory of international relations. Whether it seems foreign policy of Mahmood Ahmadinejad, government is different from his before and after governments. Perhaps it could be provided more detailed and objective analysis from foreign policy of Islamic Republic of Iran during Ahmadinejad ...

Do tougher environmental regulations cause firms to flee the country? Although several studies document the impact of environmental regulation on domestic production, the question of whether firms increase foreign manufacturing in response to new domestic regulation has remained unanswered. Consequently, our understanding of the efficacy of environmental policy is limited, as is our understandi...

We develop a discrete-time model in which the stock markets of two countries are linked via and with the foreign exchange market. The foreign exchange market is characterized by nonlinear interactions between technical and fundamental traders. Such interactions may generate complex dynamics and recurrent switching between “bull” and “bear” market phases via a well-known pitchfork and period-dou...

The consensus of the aid effectiveness literature is that foreign aid is effective at spurring economic growth in recipient countries. However, economic growth is heterogeneous in nature, driven by a number of different activities within an economy. This paper contributes to the literature by disaggregating the Gross Domestic Product of recipients in order to investigate the type of economic gr...

foreign direct investmentplays a crucial role in the economy of developing countries like bangladesh through accelerating gross domestic product (gdp), export and domestic investment followed by overall economic growth. the present scenario of fdi in bangladesh in not still satisfactory enough but given the availability of abundant resources, skilled and cheap labor forces, a stable political a...

In all types of debates regardless of topic research findings, investigations, evaluations and media reports regarding aid will find one prominent question, namely whether there is any clear connection between aid and economic growth in countries that have received high amounts of foreign aid. One argument has been that the connection between a high amount of foreign aid and economic growth is ...

The paper develops a model of foreign direct investments (FDI) and foreign portfolio investments (FPI). FDI enables the owner to obtain refined information about the firm. This superiority, relative to FPI, comes with a cost: a firm owned by the FDI investor has a low resale price because of asymmetric information between the owner and potential buyers. The model can explain several stylized fa...

Recently, a dramatic accumulation of foreign exchange reserves has been widely observed among developing countries. The purpose of this paper is to explore what macroeconomic impacts accumulated foreign reserves have in developing countries. In the first part, we analyze a simple open economy model where increased foreign reserves reduce costs of liquidity risk. Given the amount of foreign rese...