Gersbach, Hans (contributor); Schmutzler, Armin (contributor) - 2006
We analyze a two-country model of Foreign Direct Investment (FDI). Two firms, each of which is originally situated in … relocate R&D activities. Finally, they engage in product-market competition. Our main points are: first, FDI liberalization … knowledge generated and obtained abroad flows back to the domestic country. Third, the potential of R&D offshoring makes FDI …