We investigate both theoretically and empirically the competitive discipline effect exerted by FDI on plant-level price-cost margins. Using plant level data for manufacturing industries in the United Kingdom we find robust evidence supporting our theoretical predictions: greenfield FDI has a...

This paper considers the link between the local availability of services and a firm’s decision to become a multinational. This is a highly topical issue, given that many industrialised countries are increasingly becoming services economies and firms become increasingly more globalised. In an...

This paper assesses the impact of corporate taxation on multinational activity. A numerically solvable general equilibrium model of trade and multinational firms is used to incorporate the following components of corporate taxation: parent and host country statutory corporate tax rates,...