There are two main options for companies to serve foreign markets; exports and foreign direct investment (FDI). Based on the Helpman, Melitz and Yeaple (2004) model for two host countries this paper derives a clear theoretical prediction for the decision between both strategies. A bivariate...

The study examines the impact of Austrian outward foreign direct investments (FDI) on home based parent company employment. The analysis is based on the AMADEUS firm-level database and an improved methodology by applying matching methods and the difference in difference estimator. In this way we...

Empirical studies analysing productivity effects of inward FDI in Latin America (LA) are inconclusive. We argue that investigating aggregate FDI masks interesting effects of FDI that take place within and across sectors. Moreover, the potential of FDI to generate productivity effects differs...