This paper uses a dataset on the foreign activities by Swedish manufacturing firms to examine the performance of German affiliates compared with affiliates in other locations. It is found that German affiliates, on average, have higher labour productivity, R&D expenditure per employee and...

This paper presents a simple framework in which the location and the growth rate of economic activities are endogenous and interact. We show that the nature of the equilibrium and of the relation between growth and location depends fundamentally on whether capital is assumed to be mobile (in...