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present evidence of a trade-off between distance to the headquarters and the knowledge intensity of the foreign subsidiary … headquarters is, on average, about one percent higher in the knowledge intensity scale. I find no evidence of the knowledge …
Persistent link: https://www.econbiz.de/10011864328
This paper considers the effect of acquisition FDI on the knowledge production function. We distinguish between … complementarities in the knowledge assets of the MNE and the target firm as a reason for FDI. In contrast, consistent with technology … sourcing FDI, acquisitions from non-leading countries increase internal R&D efforts. -- MNE ; knowledge production function …
Persistent link: https://www.econbiz.de/10009503803
We provide an overview and synthesis of recent work on models of monopolistic competition with heterogeneous firms in international trade, paying particular attention to competition effects, pass-through, selection effects, and linking distributions of firm characteristics and outcomes. A...
Persistent link: https://www.econbiz.de/10012129746
Multinational enterprises are often accused to have a preference for investing in countries in which the working populations' civil and political rights are largely disregarded. This paper presents an empirical investigation of the popular political repression boosts FDI hypothesis and arrives...
Persistent link: https://www.econbiz.de/10011397998
The past decades witnessed big changes in international trade with the rise of global value chains. Some countries, such as China, Poland, and Vietnam rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of participation in global value...
Persistent link: https://www.econbiz.de/10012213059
The paper investigates the consequences of outsourcing of labor intensive activities to low-wage economies. This trend challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance markets are missing. The main results are: (i)...
Persistent link: https://www.econbiz.de/10003790635
Recent contributions on offshoring often assume that firms can freely split their production process into separate steps which can be ranked according to the cost savings from producing abroad. We replace this assumption by the notion of a technologically determined sequence of production steps....
Persistent link: https://www.econbiz.de/10003808676
This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...
Persistent link: https://www.econbiz.de/10010227197
We embed a North-South trade model into an incomplete contracts setting where the production of heterogeneous firms can be geographically separated. When a Northern headquarter contracts with a Southern supplier instead of a Northern supplier, the presence of international incomplete contracts...
Persistent link: https://www.econbiz.de/10009130212
of knowledge sharing. Weaker intellectual property rights over input production technologies raise welfare when value …
Persistent link: https://www.econbiz.de/10012803687