Although at the country and industry level there is much evidence on the importance of access to services for exports and participation in global value chains, such evidence is largely absent at the firm level. In this paper we use a newly constructed dataset that connects city-level access to...

We introduce a stylised model where a risk-averse foreign investor teaming up with a local partner is concerned about background political risk affecting public goods provision (permits, etc.) by a local government. We show that the risk-averse principal as a residual claimant leaves a larger...