This paper aims to investigate the economic and institutional determinants of Foreign Direct Investment in world post-2000. To this end, I analyze inwards stocks FDIs using unilateral bilateral data. Based on UNCTAD database, also study impact Bilateral Treaties inflow FDIs. Main results provide evidence supporting idea that treaties increase inflows years following their signature. However, re...

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...