A model of strategic investment and trade is incorporated in a politiacl economy framework of the Grossman-Helpman type to study the impacts of foreign direct investment (FDI) on the formulation of trade and industrial policies in the host country.

We study a matching model of the labor market, where wages are determined by rent sharing. Workers invest in human capital before they join the labour market.

A two-country (North-South) endogenous-growth model is constructed where foreign direct investment (FDI) acts as the conduit of cross-border knowledge spillovers and learning.

A simple endogenous-growth model is constructed to account for the growth of the transnational corporation (TNC) through foreign direct investment (FDI), and its implications for host countries.