We investigate whether government subsidies to local input manufacturers encourage procurement from foreign firms. We use a comprehensive panel data of Irish firms from 1983 until 2002. Our data shows a spontaneity about linkages and relative insensitivity to grant aid, although it may be the...

This paper focuses on the role of absorptive capacity in determining whether or not domestic firms benefit from productivity spillovers from FDI using establishment level data for the UK. We allow for different effects of FDI on establishments located at different quantiles of the productivity...

The Central East European economies are competing for international investment capital, especially for FDI in order to support transformation. The paper explores how the Siemens AG, one of the world's largest MNCs, allocates investments towards and within Central East Europe and how they fit...

Global engagement of firms can take a variety of forms. We argue that there are considerable advantages of developing models that allow for a wide set of alternatives of organizational form. We illustrate this firstly using plant level data which allows us to distinguish firms that serve only...

Der Beitrag analysiert die internationalen Produktionsverlagerungen und Investitionsverflechtungen in der Automobilindustrie, um die These zu überprüfen, dass es selbst bei der Herstellung relativ wissensund technologieintensiver Güter zu einem nachdrängenden Wettbewerb aus Ländern mit...

Foreign direct investment - the major driving force of globalization - is increasingly dominated by merger and acquisition activities. Since the mid-1990s, an unprecedented wave of foreign direct investment and a corresponding wave of cross-border mergers and acquisitions can be observed. As a...

In the last decades, foreign direct investment (FDI) has increased strongly among industrialised countries. U.S. companies were the first to set up foreign affiliates followed later by companies from smaller industrialised countries. This paper develops a general equilibrium model of...

This paper deals with the interactions between outward investments of western multinationals and export performance of their affiliates in transition countries. It argues that multinationals make an important contribution to increasing, diversifying and up-grading trade, because they are able to...

One of the most significant changes in the global economy today is the strong increase in outgoing foreign direct investment (OFDI) from emerging economies to industrialised countries. Whereas investment in less developed countries is often motivated by the sourcing of natural resources and...

Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the increasing importance of MNE networks. These hypotheses are...