000			02935cam a22003257 4500
001			w4668
003			NBER
005			20211020114411.0
006			m o d
007			cr cnu||||||||
008			210910s1994 mau fo 000 0 eng d
100	1		_aFeldstein, Martin. _910276
245	1	4	_aThe Effects of Outbound Foreign Direct Investment on the Domestic Capital Stock / _cMartin Feldstein.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1994.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w4668
500			_aMarch 1994.
520	3		_aThis paper analyzes the effect of outbound foreign direct investment (FDI) on the domestic capital stock. The first part of the paper shows that only about 20 percent of the value of assets owned by U.S. affiliates abroad is financed by cross-border flows of capital from the United States. An additional 18 per cent represents retained earnings attributable to U.S. investors. The rest is financed locally by foreign debt and equity. The second part of the paper analyzes data for the major industrial countries of the OECD and finds that each dollar of cross- border flow of foreign direct investment reduces domestic investment by approximately one dollar. This dollar for dollar displacement of domestic investment by outbound FDI is consistent with the Feldstein-Horioka picture of segmented capital markets. It suggests that while portfolio funds are largely segmented into national capital markets, direct investment can achieve cross-border capital flows. A dollar outflow of direct investment reduces domestic investment by a dollar and this is not offset by a change in international portfolio investment. This ability of foreign direct investment to circumvent the segmented national capital markets also appears in the expanded use of foreign debt and equity capital to finance the capital accumulation of foreign affiliates of U.S. firms. Taken together, these estimates suggest that each dollar of foreign assets acquired by U.S. foreign affiliates reduces the U.S. domestic capital stock by between 20 cents and 38 cents.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aH2 - Taxation, Subsidies, and Revenue _2Journal of Economic Literature class.
690		7	_aH87 - International Fiscal Issues • International Public Goods _2Journal of Economic Literature class.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w4668.
856	4	0	_uhttps://www.nber.org/papers/w4668
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w4668
942			_2ddc _cW-PAPER
999			_c343741 _d302303