The United States has experienced a dramatic increase in foreign direct investment (FDI) in recent years. While foreign firms bring immediate benefits of high-paying jobs, data limitations have prevented detailed study on FDI's long-term effects on the states receiving it. By creating a new...

This note looks at Smith's critiques of bounties (read "subsidies") on exports. Smith's analysis of bounties foreshadowed the basic trade policy framework of distortions and noneconomic objectives. While Smith did not develop the theory of distortions, he captured the logic of the theory of...