This paper examines the impact of foreign direct investment (FDI) flows on the Turkish economy in the aftermath of its liberalization in the early eighties, with an emphasis on the technology transfer related aspects of FDI, i.e. FDI-related productivity and wage spillovers. We first examine the...

Although the standard microeconomic analysis is usually based on the assumption of the existence of a “representative firm,” it is known, as early as the time of the classical economists, that industrial economies are characterized by persistent heterogeneity among firms. Flexibility is one...