This paper reveals the determinants of FDI flows into Indonesia and Singapore. The empirical evidence based on the small sample cointegration test shows that, in case of Singapore, market size appears to influence FDI inflows positively and significantly, while production factor costs are...

This paper introduces a more sophisticated two-sector model of endogenous long-run growth without scale effects. The world economy consists of two similarly developed countries both of which are capable of producing manufacturings and services. The knowledge-based services as intermediate inputs...