Several recent papers have used plant-level data and panel econometric techniques to carefully explore the existence FDI externalities. One conclusion that emerges from this literature is that it is difficult to find evidence of positive externalities from multinationals to local firms in the...

This paper develops a model of capacity-price competition in which the equilibrium outcome ranges from the Bertrand to the Cournot outcome as capacity constraints become more important. This model is employed to reexamine aspects of strategic-trade-policy theory and, in particular, the theory's...