[eng] To determine whether governments can affect foreign businesses'' location choices, the impact of government expenditure (in subsidies or fixed capital), of the effective tax rate for these companies and of the assistance provided by the European Regional Development Fund is assessed. The...

The downturn in fixed investment among advanced economies from the onset of the global crisis was unusually severe, widespread and long-lasting relative to comparable episodes in the past. As a result, investment gaps are large in many countries, not only in relation to past norms but also...

This paper assesses the OECD’s projections for GDP growth and inflation during the global financial crisis and recovery, focussing on lessons that can be learned. The projections repeatedly over-estimated growth, failing to anticipate the extent of the slowdown and later the weak pace of the...

Theoretical and empirical studies show that the level and volatility of exchange rates can have significant effects on foreign direct investment (FDI). But the evidence is ambiguous, with the impact of exchange rates being heterogeneous across countries and types of investment, and varying over...

Conventional unit root tests are biased towards non-rejection of the null when applied to variables characterized by a one-time change in their mean. Suggested modifications allowing for a break point require identification of an exogenous change initiated at the time of the break and not...

Foreign direct investment in the European Economic Area (EEA) has grown rapidly in recent years. This paper tests for structural change in the geographical and industrial pattern of foreign direct investment in Europe using a panel data set on outward investment by German companies in the EEA...

This paper seeks to quantify the impact of the European internal market programme on the sectoral and geographical pattern of foreign direct investment by U.K. corporations. The author uses an annual panel data set covering investment within seven sectors in the European Union and the United...

This paper is concerned with the allocation of total final expenditure between different categories of domestic net output and imported goods and services. In contrast to previous studies, the authors show that the use of net output data means that allowance has to be made for both consumer...