How do multinational enterprises (MNEs) affect the host country's economy through their vertical industrial linkages when large natural disasters occur? To answer this question, we develop a simple theoretical framework and show the possibility of multiple equilibria: one where the host country...

A salient feature of the current globalization is a loss of manufacturing in developed countries and rapid industrialization in middle-sized developing countries. This paper aims to construct a simple three-country trade and geography model with different market sizes and endogenous wage rates....

The Global Minimum Tax (GMT) is applied only to firms above a certain size threshold, permitting countries to set differential tax rates for small and large firms. We analyse tax competition between a tax haven and a non-haven country for heterogeneous multinationals to evaluate the effects of...