"Razin and Sadka provide a modern treatment of aggregate foreign direct investment flows and their relationship to portfolio investment and taxation. A unique perspective of this treatise is the emphasis on the role of threshold effects that emerge from fixed costs of FDI. Importantly, there is theory and evidence, which combine into an integrated view of the subject. Scholars and ... Read morestudents of international economics will greatly benefit from reading this book."—Elhanan Helpman, Harvard University "Foreign direct investment flows have become a major feature of the world economy. This book provides a fascinating, novel approach to explaining the determinants of these cross-border investment flows. Razin and Sadka skillfully intertwine theory and empirics to shed new light on the role of private information and fixed costs of operation in shaping foreign direct investment flows. I highly recommend this book for anyone interested in international economics."—Pol Antràs, Harvard University "This book is an important and timely contribution to our understanding of foreign direct investment. The book contains a great deal of useful material. It begins by presenting a suite of new models for thinking about FDI. This is followed by a review of a range of new data on FDI, combined with empirical techniques that help clarify patterns present in FDI in developing countries. Finally, the book studies one policy issue in depth: the tendency of tax competition among countries to lead to inefficiently low taxes. Interestingly, the book provides a new spin on this argument, showing that host-country taxes need not become too low."—Mark Wright, Stanford University Show Less