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Elhanan HelpmanRazin 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 students of international economics will greatly benefit from reading this book.
— Elhanan Helpman, Harvard University