Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To … explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the … reason of growing trade in intermediate goods in the cross-section and the time-series framework. The evidence for …

empirically. More specifically, we use state-level German data to answer the question whether and how migration and FDI decisions … and thus integration of labor and capital markets are linked. Our findings suggest that FDI and migration have similar … and trade in goods. From a theoretical point of view, the interaction between the different channels of integration can …

the abolition of capital controls seem to have exerted a greater influence on foreign assets than on FDI of German banks …

investment (FDI) cannot be gauged using firm-level data. Aggregated data, in turn, miss channels through which domestic and … investment. We theoretically show that the effects of FDI on the domestic capital stock depend on the structure of industries and … inter-sector linkage effects. We test the model using data on German FDI. Using panel cointegration methods, we find …

-oriented FDI is based on the trade-off between fixed and variable costs. -- Multinational firms ; Wholesale sales ; Discrete choice … analysis of distribution-oriented FDI has, however, received little attention which is at least partly due to the lack of … possibility for a multinational firm to export through its wholesale trade affiliate in order to analyze multinational firms …

Economic theory provides two main explanations why changes in exchange rates can affect foreign direct investment (FDI …). According to a first explanation, FDI reacts to exchange rate changes if there are information frictions on capital markets and … explanation, FDI reacts to exchange rate changes if output and factor markets are segmented, and if firm-specific assets are …

Does more FDI make the world a riskier place for workers? We analyze whether an increase in multinational firms …

the period 1989-2002. We find that German outward FDI increases in response to positive cyclical developments abroad and …

, multinational activity in Eastern Europe is mostly unilaterally whereas, for industrialized countries, bilateral FDI linkages …