The impact of foreign direct investment (FDI) on domestically owned firms in developingcountries has been widely debated in the literature. It has been argued that FDI providesaccess to advanced technologies and other intangible assets which may spill over to the hostcountry and allow domestic...

This paper analyses theoretically and empirically how employment subsidies should betargeted. We contrast measures involving targeting workers with low incomes/abilities andtargeting the unemployed under the criteria of "approximate welfare efficiency" (AWE)...