In recent decades, foreign direct investment (FDI) played an important role in achieving economic growth and development especially for developing countries. FDI bring capital and introduced new technology. Moreover, the new technology can also spill over to the local firms in the host country....

This paper examines the role played by agglomeration economies as location determinants of regional foreign direct investment in manufacturing. The analysis reveals that foreign direct investment location is dependent on specific industry traits, and that agglomeration economies appear as the...

In recent years, and for the first time in Spanish economic history, outward direct investment flows outweigh inward flows. Catalan manufacturing not only mirrors this pattern, but also represents a high proportion of all Spanish manufacturing outward direct investment. In this paper, we analyse...

The purpose of this study is to formalize the choice of market entry strategy for an individual multinational enterprise (MNE) from a dynamic perspective. It is argued that incorporating a suitable treatment of irreversibility, uncertainty and flexibility related to a MNEs investment decision...

We study the impact of trade liberalization on the international strategy of firms (to export and/or invest abroad as well as the number of products to be produced and exported) when product differentiation is endogenous. By considering product differentiation as a strategic variable, our...

Abstract. This paper studies the labor market implications of high-tech versus low-tech foreign firms by using a heterogeneous matching model. This approach allows us to identify the effect of the different skill intensity of the foreign firm’s production on the wages of unskilled and skilled...

Vertical disintegration in most industries and the globalization of markets has led to significant changes in the pattern of international division of labour among manufacturing firms. At the same time increased competition from low cost producers, exchange rate constraints, the opening up of...

While foreign direct investment (FDI) by multinational corporations (MNCs) has become increasingly important in economic growth since the early 1990s, empirical studies on the role of host-country markets, a key determinant of FDI flows, have been limited. This paper seeks to close this gap by...