This paper applies a gravity model to foreign direct investment (FDI) stocks in five countries of Southeast Europe from nine selected Western European source countries, using five countries of Central Europe as a control group. Basic elements of the economic theory on FDI are shortly reviewed,...

The paper originates from the casual observation that the application of the Devereux and Griffith methodology to calculate bilateral effective average tax rates (BEATRs) leads to results indicating that BEATRs for German outbound investment increased sharply from 1999 to 2001, despite a marked...

This is the text of Professor Robert Feenstra's 'Global Economy Lecture' which he delivered in February 2007. It is part of a lecture series organized jointly by the Vienna Institute for International Economic Studies (wiiw) and the Austrian National Bank (OeNB). In this lecture, Professor...

The paper starts with a discussion of the development of the number of manufacturing sector jobs in the framework of economic transformation and industrial restructuring in Central and Eastern Europe. Over the past decade, domestically-owned manufacturing companies reduced the number employed...

Analysing the evolution and determinants of foreign direct investment (FDI) in Estonia, Latvia and Lithuania, this paper argues that sound economic policies have created an environment conducive for FDI. Overall, FDI has contributed to economic growth in the Baltic economies, having financed...

This paper develops a Schumpeterian model of international specialization and catching-up. In a previous version of the model we looked at the impact on international trade specialization when different patterns of technological catching-up are followed. One of these is a Gerschenkron pattern at...

This paper attempts to reconcile the often inconclusive evidence on the impact of FDI on growth by taking into account the heterogeneity both among industries and among countries. Using a comparable database at the industry level for 35 countries of the OECD, Asia and Eastern Europe from 1987 to...

Using public policy instruments to attract Foreign Direct Investment (FDI) has become standard in most countries, irrespective of their level of development, geographical location or industrial structure. Against this background the paper analyses the suitability of various public policies to...

Working with a panel dataset of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the services sectors. We first develop a consistent analytical framework for the application of the gravity model to both services trade and commercial presence...

Ukraine was confronted with an unprecedented economic and financial crisis during 2008-2009. That crisis has until recently been compounded by a highly unstable political situation. The European Union, Ukraine's neighbours and the international community have been concerned about possible...