The Resource Debt and foreign direct investment in a small developing economy, by Prasopchoke Mongsawad

Debt and foreign direct investment in a small developing economy, by Prasopchoke Mongsawad

Label
Debt and foreign direct investment in a small developing economy
Title
Debt and foreign direct investment in a small developing economy
Statement of responsibility
by Prasopchoke Mongsawad
Creator
Subject
Language
eng
Summary
Debt plays an important role as a source of investment for a small developing country. However, over accumulation of debt may be one of the reasons leading a country to a financial crisis. Foreign direct investment is, therefore, a good alternative to debt because foreign investors share the risk with the country. This study examined a small developing country and a foreign investor's decisions on determining the optimal debt and foreign direct investment levels when an effect of debt on the country's vulnerability to crisis was taken into account. This study was conducted on the assumption that (1) the probability of the country having a crisis increases with debt level; and (2) the country and the foreign investor are risk-neutral. At some (exogenous) share of foreign ownership of equity, multiple equilibria occur: a high debt-low foreign direct investment equilibrium and a low debt-high foreign direct investment equilibrium. The existence of multiple equilibria raises a question on the conventional viewpoint that a country with high debt-low foreign direct investment could increase foreign direct investment by increasing the maximum legal share of foreign equity ownership. This study argues that even at a high share of foreign equity ownership, the country might not be able to move to the low debt-high foreign direct investment equilibrium because it is trapped at the high debt-low foreign direct investment equilibrium. The implication was that the country needs a policy in addition to the foreign ownership policy to push the country to the low debt-high foreign direct investment equilibrium. Furthermore, the study shows that a low debt-high foreign direct investment equilibrium can exist at a low fraction of foreign ownership. This suggests that a small country need not necessarily offer a very high share of foreign ownership to reach low debt-high foreign direct investment equilibrium
Additional physical form
Also available on the Internet.
Cataloging source
MUU
http://library.link/vocab/creatorDate
1971-
http://library.link/vocab/creatorName
Mongsawad, Prasopchoke
Degree
Ph. D.
Dissertation year
2001.
Government publication
government publication of a state province territory dependency etc
Granting institution
University of Missouri-Columbia
Illustrations
illustrations
Index
no index present
Literary form
non fiction
Nature of contents
  • bibliography
  • theses
http://library.link/vocab/subjectName
  • Debts, External
  • Investments, Foreign
  • Capital costs
  • Investments, Foreign
  • Investments, Foreign
Target audience
specialized
Label
Debt and foreign direct investment in a small developing economy, by Prasopchoke Mongsawad
Instantiates
Publication
Note
Typescript
Bibliography note
Includes bibliographical references (leaves 101-103)
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Control code
49632195
Dimensions
29 cm
Dimensions
unknown
Extent
x, 103 leaves
Media category
computer
Media MARC source
rdamedia
Media type code
c
Other physical details
illustrations
Specific material designation
remote
Label
Debt and foreign direct investment in a small developing economy, by Prasopchoke Mongsawad
Publication
Note
Typescript
Bibliography note
Includes bibliographical references (leaves 101-103)
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Control code
49632195
Dimensions
29 cm
Dimensions
unknown
Extent
x, 103 leaves
Media category
computer
Media MARC source
rdamedia
Media type code
c
Other physical details
illustrations
Specific material designation
remote

Library Locations

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      2908 Lemone Blvd, Columbia, MO, 65211, US
      38.919360 -92.291620
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