In a two-country reciprocal-dumping model, with one country unionized, we analyse how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce a unionized firm to move all production abroad. This cannot prevail in a corresponding,...

In this paper we investigate the firm-specific factors that account for the decision to invest in low-wage countries on the part of Italian firms in the textiles and clothing sector. This analysis is motivated by the fact that our survey data show, between 1990 and 1997, a decline of average...

This paper studies the effects of subsidy competition for the location of a multinational enterprise (MNE). We assume that a (poorer) region enjoys larger gains from the positive externalities associated with the inward investment but that the MNE would find it more profitable to locate to the...

This Paper examines the technology transfer through FDI in Hungary, using a large panel dataset of 24,000 firm-level observations. We distinguish horizontal (intra-industry) and vertical (inter-industry) spillovers. Besides the sign and magnitude of these effects we are interested in the spatial...

Agricultural support is often advocated as a means to national security. This is misguided. At current levels of consumption there is considerable scope for substitution away from food without catastrophic welfare losses, and even in the total absence of imports the United Kingdom could feed...