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locations. We use panel data on U.S. FDI in NAFTA and MERCOSUR members from 1989 to 1998. Economic integration is captured …
Persistent link: https://www.econbiz.de/10005577152
We construct a model in which oligopolistic firms decide where to locate. Firms choose to locate either in a country where employment protection implies costly output adjustments or in one without adjustment costs. Using a two-period three-stage game with uncertainty it is demonstrated that...
Persistent link: https://www.econbiz.de/10005022135
While there has been a large empirical literature on productivity spillovers from foreign to domestic firms this literature treats the channels through which these spillover effects work as a black box. This paper attempts to fill this gap in the literature. Our results suggest that firms which...
Persistent link: https://www.econbiz.de/10005022137
This paper discusses the impact of foreign direct investment (FDI) on market entry and welfare. It assumes that firms … may enter markets in the first period as national firms only. In the second period, however, FDI is possible. The paper … demonstrates that FDI reduces market entry because equilibrium profits in the second period decline with a decrease in the fixed …
Persistent link: https://www.econbiz.de/10005398537
This paper focuses on the pattern of returns to scale and productivity growth in UK manufacturing establishments in the electronics and food industries. Our results show that foreign establishments tend to have lower returns to scale than their domestic counterparts. Moreover, foreign...
Persistent link: https://www.econbiz.de/10005232495