A growing strand of literature highlights that skilled migration mayfavour growth-enhancing technology transfer, trade and foreign direct in-vestments between the source and the host economies of migrants (net-work effects). We explore a speci…c channel through which the possi-ble "diaspora...

National borders are still strong barriers for mergers and acquisitions inEurope. We estimate a gravity equation model based on NUTS 2-regionsand find that the restraining impact of national borders decreased byabout a third between 1990 and 2007. However, there has been nosignificant change...

We study a model where two parties, one from the left and one from the right, compete forposition. The election is to be held in the near future and the outcome is uncertain. Prior to theelection, the members of both parties nominate their prime ministerial candidates. Investorscare about the...

This paper explores the optimal risk sharing arrangement between generations in an overlapping generations model with endogenous growth. We allow for nonseparable preferences, paying particular attention to the risk aversion of the old as well as overall “life-cycle” risk aversion. We provide...

This paper sheds light on the influence of exchange rate volatility on foreign direct investment (FDI), both at the theoretical and the empirical level. The novelty of the empirical analysis, which is based on a panel of 27 OECD countries over the period 1982-2002, is to provide evidence of a...

This paper investigates whether the size of multinationals’ real investments ina high-tax country is affected by profit shifting activities. A simple theoretical analysisshows that tax rates abroad impact the cost of capital in the presence of profit shiftingactivities of multinational...

Does FDI affect productivity growth, innovation, and knowledge sourcing activities ofdomestic firms? This study employs detailed firm-level panel-data from Estonia’smanufacturing sector to investigate different channels through which FDI can affectdomestic firms. I use instrumental variables...

We review a large body of literature dealing with the effects of Foreign Direct Investment(FDI) on economies during their transformation from a command economic systemtoward a market system. We report the results of a meta-analysis based on the literatureon externalities from FDI. The studies on...

It is commonly alleged that foreign direct investment (FDI) in the service sector haspositive consequences for the domestic labor market. This paper shows that this widelyaccepted view does not generally hold...

In this paper an index of financial competitiveness is calculated that corresponds to themarket-to-book ratio of inward FDI stocks. For a panel of five advanced economies from1980 to 2006 it is shown that price competitiveness, stable inflation rates and registeredpatents have a positive impact...