This paper introduces “capital ownership neutrality” (CON) and “national ownership neutrality” (NON) as benchmarks for evaluating the desirability of international tax reforms, and applies them to analyze recent U.S. tax reform proposals. Tax systems satisfy CON if they do not distort the ownership of capital assets, which promotes global efficiency whenever the productivity of an investment di...

D uring the past few decades, national security plays a central role in the process of economic development. Also, foreign investment and trade have rapidly increased worldwide and have enhanced economic growth in developing countries. Although foreign investment and trade bring huge economic benefits, many developing countries fear that by opening up markets to competition and forei...

Using bank level data for 80 countries in the 1988-1995 period, this paper examines the extent of foreign ownership in national banking markets. The net interest margins, overhead, taxes paid, and profitability of foreign and domestic banks are compared. The functioning of foreign relative to domestic banks is very different in developing and developed countries, with foreign banks achieving hi...

We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when domestic banks are better than foreign banks at monitoring soft information customers, foreign bank entry may hurt these customers and worsen welfare. The model also predicts that credit to the private sector should be lower in countries with more foreign bank penetr...

This paper examines the effects of exchange rates on R&D activities and international strategy choices of the oligopolies. We develop a three-stage game-theoretic model in which two firms located in two different countries (a developing and a developed one) choose the mode of foreign expansion in the first stage. They decide how much to spend on R&D, and how much to sell in domestic and foreign...

We compare the effects of transactional, institutional, and experience influences on the ownership strategies of Japanese investors. Our theoretical development suggests that the equity position of a foreign investor should increase as the specificity of the assets transferred to the foreign affiliate increases, but a lower equity position should be assumed when the foreign investor requires co...

" …the primary determinant of a country's standard of living is how well it succeeds in developing and utilizing the skills, knowledge, health and habits of its population. SUMMARY In recent years, academics and policy-makers have emphasized the role of human capital formation in economic development. By creating human capital, countries become more attractive to private investment, both domest...

BACKGROUND Rural healthcare facilities in low-income countries play a major role in providing primary care to rural populations. We examined the link of foreign aid with government investments and medical service provision in rural health centres in Rwanda. METHODS Using the District Health System Strengthening Tool, a web-based database built by the Ministry of Health in Rwanda, we construct...

The study is an empirical test of the effects of different categories of government expenditure, revenue and deficits on economic growth in developing countries. It is based on panel data of annual series over the last three decades for 103 countries, which are further classified into low-income, high-income, mineral exports dependent, and foreign aid dependent groups. Our findings suggest that...