Working with a panel dataset of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the services sectors. We first develop a consistent analytical framework for the application of the gravity model to both services trade and commercial presence...

This paper investigates empirically the relationship between trade and FDI in services. Using bilateral data on US foreign affiliates' sales and trade as well as data on barriers to FDI, the relationship is investigated using different panel techniques, including fixed effects and...

This policy paper, prepared as part of the Background Study for the European Competitiveness Report 2009, analyses the external trade in goods and services between the EU and the BRICs. The paper starts with the analysis of the global position of the EU and the BRICs in world trade (using the...

Relocation is a way of reducing costs, thus increasing competitiveness, by splitting production and services between countries. The main argument kindling the relocation debate suggests that moving abroad generates job losses in the home country, while production and job gains appear only in the...

The paper aims to verify the existence of the Flying Geese Model (FGM) in the case of inward FDI in Central European Countries (CECs) which are new EU member states; more precisely, to find out in what way and to what extent FDI has contributed to catching up, i.e. to the restructuring process...

Romania has experienced a drawn-out transformation process and received relatively low amounts of foreign direct investment (FDI). But it has become competitive in labour-intensive manufacturing industries through the integration into European company networks by processing trade. The country...

Since the late 1990s investors have been faced with new challenges due to changing locational characteristics in the Central European transition countries. Export demand became the main driving force of manufacturing FDI as opposed to local-market penetration in earlier years. In addition,...

This paper applies a gravity model to foreign direct investment (FDI) stocks in five countries of Southeast Europe from nine selected Western European source countries, using five countries of Central Europe as a control group. Basic elements of the economic theory on FDI are shortly reviewed,...

The periodically returning debates and the disappointing bargaining on the financial perspectives for 2007-2013 have led to the proposal of a comprehensive review of the EU budget in 2008/2009. This provides an opportunity for initiating fundamental reforms of the revenue side of the EU budget....

The paper originates from the casual observation that the application of the Devereux and Griffith methodology to calculate bilateral effective average tax rates (BEATRs) leads to results indicating that BEATRs for German outbound investment increased sharply from 1999 to 2001, despite a marked...