To serve foreign markets, firms can either export or set up a local subsidiary through horizontal Foreign Direct … Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between … empirically the effect of different dimensions of distance on the choice between exports and FDI. We find that different …

This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the … and the distribution of outward FDI stocks among these countries. The results reveal a complementarity between trade and …. Using a simulation-based technique, we find that estimates of FDI effects of EMU range between 18.5% for Poland and 30% for …

This paper analyses the effect of uncertainty on investment spending. We analyse two types of investment, i ….e. aggregate investment and investment in energy saving technologies, using subjective evaluations of expectations and uncertainty … of general investment spending. Furthermore, expectations and uncertainty have important although different effects on …

optimal) dynamic equilibrium path of a competitive industry with free entry and exit, even when there is no uncertainty and …