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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 …
Persistent link: https://www.econbiz.de/10011378320
We build a dynamic general equilibrium model with 2 countries, horizontal and vertical multinational activity and endogenous domestic and foreign investment. It is found that horizontal multinational activity always leads to a complementary relationship between domestic and foreign investment....
Persistent link: https://www.econbiz.de/10011377536
This paper analyses the national tax treatment of interestexpenditures of multinational enterprises in a non-cooperative world. It is shown that the international tax systemgenerally leads to distortions in the capitaldecisions of multinational firms. In contrast to the existingliterature on the...
Persistent link: https://www.econbiz.de/10011303290
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 …
Persistent link: https://www.econbiz.de/10011372974
therefore considerable importance. Using an unbalanced panel data set of bilateral export flows among 159 economies we estimate …
Persistent link: https://www.econbiz.de/10011520823
With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly...
Persistent link: https://www.econbiz.de/10010532120
Persistent link: https://www.econbiz.de/10009784939
Biodiversity prospecting refers to the exploration of the commercial value of genetic and biochemical resources. In this chapter, we study a drug producing pharmaceutical firm (PF) that searches for potentially useful chemicals made by wild organisms in a conservation area. This PF is able to...
Persistent link: https://www.econbiz.de/10010224811
Persistent link: https://www.econbiz.de/10003851203
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