A common critique of globalization is that it leads to a race to the bottom. Specifically, it is assumed that multinationals invest in countries with lower regulatory standards and that countries competitively undercut each other's standards in order to attract foreign capital. This paper tests...

This study examines how foreign direct investment (FDI) spurs entrepreneurial activity in host countries. We also investigate why this relationship varies across countries because of domestic socio-political conditions. The findings from our panel analyses of 104 countries from 2000 to 2009 are...

Most studies on examining the links between economic growth and FDI inflows have relied on the conventional GDP measure which has been argued as inadequate to provide clear insights on the macro sustainability of a country. Alternatively, the Genuine Savings (GS) indicator has been proposed as...

This paper explores the effects of foreign direct investment, measured by mergers and acquisitions, on domestic entrepreneurial entry. We use a micro‐panel of more than two thousand individuals disaggregated by industry in seventy countries including both developed and developing economies,...

This paper studies how environmental regulation shapes the pattern of foreign direct investment (FDI), and thereby assesses the pollution haven hypothesis. Conflicting results exist in the case studies examining the most advanced countries, partly due to the deterrent effect of clean technology...

I present a model of international trade and foreign direct investment (FDI), where FDI is comprised of greenfield FDI and mergers and acquisitions (M&A). Working in a monopolistically competitive environment, merging firms do not reduce competition. Mergers are motivated by efficiency gains and...

The objective of this paper is to analyze empirically the effects of foreign direct investment (FDI) on investment in Uruguay in a long run perspective (1960-2011). On the basis of varied theoretical and analytic elements, the descriptive analysis and one empirical study with the methodology of...

This paper studies policy competition for foreign direct investment between host and home countries. Three results have been obtained. First, policy competition does not change the attractiveness of any country as a location for investment. Second, as a result, policy competition does not change...

The growing importance of global production sharing makes the nexus between outward foreign direct investment (FDI) and trade in intermediate goods ever more important. This study employs newly-constructed product-level data covering 32 products and 49 host countries over the period 1993–2008...

Empirical studies quantifying the economic effects of increased foreign direct investment (FDI) have not provided conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is consistent with theory if countries are in transition to FDI...