{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/85629"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/85629","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Essays in Foreign Investment","abstract":"\"The last essay presents a framework for analyzing indirect foreign investment flows when enforcement of private contracts is inadequate. We analyze conditions under which investment decisions are affected by a repayment incentive constraint, and study when \"\"under investment\"\" occurs. The optimal investment level is shown to be affected by changes in (i) the discount factor, (ii) the size of the domestic capital stock, and (iii) the world interest rate. We consider two policies that are frequently used by multilateral organizations: technical assistance and loan subsidies. 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