Opposition to FDI and financial shocks

• 成果类型: Article
• 署名作者: Aizenman, J
• 署名单位: University of California System; University of California Santa Cruz; National Bureau of Economic Research
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2004.04.004
• 发表日期: 2005
• 页码: 467-476
• 关键词: foreign direct investment; Financial crisis; capital controls

摘要

We identify conditions under which emerging market's capitalists would oppose financial reform in an economy where entrepreneurs can borrow internationally, but foreign agents cannot hold domestic equity. A financial crisis that raises the domestic interest rate may induce the emerging market's capitalists to support opening up the economy to FDI. Even in these circumstances, the emerging market's capitalists would prefer a partial reform to a comprehensive one. If the attitude of capitalists is the obstacle to a comprehensive reform, a side payment from labor to the capitalists may be needed to induce a reform. (c) 2005 Elsevier B.V. All rights reserved.