Abstract
Asymmetric information about true opportunity cost in trade between a multinational and its foreign affiliate can alleviate the hold-up problem in foreign direct investment. Selling shares in the affiliate to locals is also beneficial because it increase the parent multinational's information rent that is protected from a host government's confiscatory taxation.
Item Type: | Paper |
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Faculties: | Economics > Chairs > MPI for Tax Law and Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | F23, F34, G15, H87 |
ISSN: | 0014-2921 |
Language: | English |
Item ID: | 24416 |
Date Deposited: | 30. Mar 2015, 13:09 |
Last Modified: | 03. Mar 2017, 10:54 |