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...

The Peter Principle states that, after a promotion, the observed output of promotedemployees tends to fall. Lazear (2004) models this principle as resulting from a regression tothe mean of the transitory component of ability...