Empirical evidence suggests that technological spillovers are limited by distance. The present paper investigates the implications of this observation for the investment decisions of a technologically leading and lagging firm, located in different countries. Technological spillovers may induce...

The paper examines the impact of efficiency-seeking FDI on factor prices, employment, and output. The analysis shows that when transportation costs fall, companies start relocating labor-intensive production processes to low-wage countries. But this does not necessarily hurt workers in the...

Books reviewed in this article: Richard Friberg, <i>Exchange Rates and the Firm: Strategies to Manage Exposure and the Impact of EMU</i> Stephen Cecchetti, Hans Genberg, John Lipsky, and Sunil Wadhwani, <i>Asset Prices and Central Bank Policy</i> Michael J. Greenwood and John M. McDowell, <i>Legal U.S....</i>