Purpose – The purpose of this paper is to explain how eventual pressures from national lobbies may lead governments to shift from an optimal into a non-optimal innovation policy. Design/methodology/approach – A theoretical model is developed in order to examine and explain the growth and...

Concentrates on identifying the mechanisms by which foreign investment affects productivity in recipient countries. Conducts a firm-level study of manufacturing plants in Mexico and test for performance differences embodied in factor productivity between domestic and foreign (majority and...

Using a differentiated oligopoly, this paper studies the effects of tax incentives on the structure of a domestic industry in terms of price, output, profit, and entry/exit, taking account of technology transfer through FDI. It is found that if the government of the host country provides more...

Analyses the influence of export share and domestic content policies on the level of capital investment undertaken by a multinational firm both in its home country and in the foreign country in which it operates. These protective policies, in force in both developing and industrialized...

Attempts to incorporate the “new forms” of foreign investment into a unified model. Uses this simple model to show how differences in production environment in particular, are likely to affect both the timing and mode(s) that any foreign investment is likely to take. The explanatory...

Examines how the locational choice of foreign direct investment (FDI) is influenced by regional characteristics in mainland China, such as the potential for market share extension, labour cost differences, allocative efficiency, transportation infrastructure, and research and development...

Using the notions of unit root, cointegration theory and Granger-Akaike’s synthesis of modelling strategy, this paper examines the nature of stationarities, cointegration properties and Granger causal relationship between domestic savings and aid based on a sample of 27 developing countries....

Recent studies on the welfare implications of internationally mobile capital for a country employing commercial policy have been restricted to constant-returns-to-scale (CRS) production models. It is generally concluded that the pursuit of such policies is welfare-decreasing under CRS...