This paper examines how trade liberalisation affects innovation, profits and welfare when firms are engaging in strategic R&D investment. We show that there are multiple equilibria including an autarky equilibrium for a range of high but non-prohibitive trade costs. At lower trade costs, only...

This paper aims to identify the obstacles to attracting "quality" foreign direct investment (FDI) in middle-skill manufacturing activities, so as to inform an action-agenda for policies that will help developing and emerging market economies to link into global supply chains while building...

Foreign direct investment in developing countries has got a bad reputation in some popular discussions where it is set tantamount to first world’s postcolonial exploitation of the raw materials and cheap labour from the third world, associated with pictures of leaking oil fields and collapsing...

Foreign trade and sustainability is high on the political agenda. German and international policy-makers undertake increasing efforts to use trade policy more effectively for sustainable development purposes. A growing toolbox is meant to facilitate these policy aims, including sustainability...

When it comes to attracting foreign direct investment, Africa as a whole may be described as some-thing like the "forgotten continent". In a global comparison, the continent is fairly insignificant as a destination for the investment of foreign companies. This paper makes this point using...

Goal 8 of the UN Sustainable Development Goals (SDGs) calls for promoting "sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all". One driver that may help to achieve this goal is foreign direct investment (FDI). It has the potential to...

German Foreign Direct Investment (FDI) in Africa is lagging behind China, France, the Netherlands, the UK, the US, and other economies. It represented only 1 percent of the German total FDI stock abroad in 2018 and is concentrated in few African countries. Overall, around 850 German firms have...