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Foreign Investment and Finance with Risk

David Hartman^1,2

¹ Harvard University · ² National Bureau of Economic Research

I. The literature on investment in risky foreign projects, 213.—II. A portfolio model of foreign investment, 216.—III. The financing of foreign investment, 219.—IV. The effect of no foreign borrowing, 222.—V. The effect of taxation: debt transfer, 223.—VI. The effect of taxation: equity transfer, 226.—VII. Policy implications, 229.—VIII. The behavior of individual firms, 230.—IX. Conclusions, 230.

DOI

10.2307/1883192

Volume

93 (2)

Pages

213

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