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In this paper, we develop a simple model of international outsourcing and apply it to processing trade in China. We … observe China's processing exports broken down by who owns the plant and by who controls the inputs the plant processes …. Multinational firms engaged in export processing in China tend to split factory ownership and input control with managers in China …
Persistent link: https://www.econbiz.de/10012468496
This paper documents novel evidence on the influence of political incentives in the regulatory enforcement of foreign bribery. Using exogenous variation in the timing and geographic location of U.S. Congressional elections, we find that the probability of a Foreign Corrupt Practices Act (FCPA)...
Persistent link: https://www.econbiz.de/10012794651
This paper studies the expansion patterns of the multinational enterprise (MNE) in time and space. Using a long panel of US MNEs, we document that MNE affiliates usually start with sales exclusively to the host market and eventually enter export markets, and that this extensive margin of...
Persistent link: https://www.econbiz.de/10012479754
Models dealing with cross-border acquisitions versus greenfield investment usually assume that the entry of a foreign firm into a market has effects on the outputs of all domestic firms in that market, but exit or entry of local firms is not considered. The purpose of this paper is to re-examine...
Persistent link: https://www.econbiz.de/10012463119
We investigate whether productivity differences explain why some manufacturers sell only to the domestic market while others serve foreign markets through exports and/or FDI. When overseas production offers no cost advantages, our model predicts that investors should be more productive than...
Persistent link: https://www.econbiz.de/10012468642
Anecdotal evidence suggests that new CEOs with foreign backgrounds direct their firms to become more international in their operations. We examine this hypothesis formally using data on U.S. S&P-500 manufacturing firms from 1992 through 1997 and biographical information on CEOs' birth and...
Persistent link: https://www.econbiz.de/10012469175
A growing literature seeks to understand how the characteristics of firms shape the manner in which they serve foreign markets. We consider an environment in which multiproduct firms can sell their products in multiple countries from multiple locations. We show that there are strong empirical...
Persistent link: https://www.econbiz.de/10012459495
Despite awareness of the detrimental impact of CO<sub>2</sub> pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel micro data about firms' CO<sub>2</sub> emissions across countries, we document that firms headquartered in countries with strict...
Persistent link: https://www.econbiz.de/10012480768
The fundamental unit of production in microeconomics is the firm, and this mirrors reality in the United States and United Kingdom. But elsewhere, business groups can be the more important unit, for business strategy is often formulated at the business group level, not the firm level. In many...
Persistent link: https://www.econbiz.de/10012464733
What political legacy can we expect from the Coronavirus pandemic? Drawing evidence from past epidemics, we find that epidemic exposure in an individual's "impressionable years" (ages 18 to 25) has a persistent negative effect on confidence in political institutions and leaders, but not in other...
Persistent link: https://www.econbiz.de/10012481596