Showing 1 - 10 of 4,017
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and … ; intra-firm trade ; offshoring ; vertical FDI …
Persistent link: https://www.econbiz.de/10009273125
This paper examines location choices of multinational enterprises (MNEs). We particularly focus on the consequences of double taxation treaties (DTTs) and corporate profit taxes on the probability to choose a location. DTTs have become a key policy instrument used by countries to regulate...
Persistent link: https://www.econbiz.de/10011793840
According to conventional wisdom, multinational firms undertake vertical FDI in order to take advantage of cross-border factor cost differences and source the inputs from abroad at better terms. Recent empirical findings though document that this is not always the case. We provide theoretical...
Persistent link: https://www.econbiz.de/10011565578
We investigate the link between productivity of firms and their sourcing behavior. Following Antràs & Helpman (2004) we distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is driven by a hold-up problem caused by lack of...
Persistent link: https://www.econbiz.de/10003923683
selling abroad. Because offshoring requires larger sunk costs than domestic sourcing, some firms decide to offshore only when … between the domestic and the foreign market are greater. In turn, offshoring firms sell greater volumes, display less …
Persistent link: https://www.econbiz.de/10012534705
This paper examines how free-trade agreements and customs unions affect the location of foreign direct investment (FDI) and social welfare, taking into account that governments may adjust taxes and external tariffs to compete for FDI. Conditions are identified under which a free-trade agreement...
Persistent link: https://www.econbiz.de/10011410658
How did the rise of multinational enterprises (MNEs) put pressure on the prevailing international corporate tax framework? MNEs, and firms with market power, are not new phenomena, nor is the corporate income tax, which dates to the early 20th century. This prompts the question, what is...
Persistent link: https://www.econbiz.de/10012288036
While countries make use of a wide range of policies to attract multinational firms, identifying the effect of such policies is difficult. Combining firm-level data on both the location of these firms' foreign affiliates and detailed service-specific information from Costa Rica's investment...
Persistent link: https://www.econbiz.de/10012509370
-rights theory of the multinational firm rationalizes these effects and their heterogeneity. …
Persistent link: https://www.econbiz.de/10014312548
We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model … sharp prediction of the prevalence of offshoring in a given industry: The propensity of firms to source intermediate inputs … particularly pronounced in industries with higher volatility. Combining industry-level data on the U.S. offshoring intensity with …
Persistent link: https://www.econbiz.de/10011882486