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consequences of attracting FDI since it allows to study through which channels FDI might raise welfare - including the not yet … cooperative FDI policy scenario and find that supranational coordination leads to welfare gains. …
Persistent link: https://www.econbiz.de/10009018028
The article summarises the main lessons of the Bank’s 2010 conference which focused on international trade and foreign direct investment. The research is based on a microeconomic approach to the behaviour of Belgian firms, with reference to developments in the scientific literature on the...
Persistent link: https://www.econbiz.de/10009357662
We develop a three-country heterogeneous-firm model and show that FDI liberalization in one foreign country (F1 …) results in the following: (i) some firms from the home country switch from export to FDI in F1; (ii) skilled labor¡¯s wage … firms from the home country switch from FDI to export to another foreign country (F2). The effects from trade liberalization …
Persistent link: https://www.econbiz.de/10010888591
This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the local industry. The model endogenizes the multinational’s choice between anonymous market...
Persistent link: https://www.econbiz.de/10010886981
Although many countries welcome inward investments by multinational firms (MNEs), it is often perceived that MNEs readily close down production in bad times. We study the choice of an MNE in deciding whether to establish a branch plant within a region, explicitly taking into account exit, as...
Persistent link: https://www.econbiz.de/10010954355
Multinationals may enter a host market by different modes of foreign direct investment (FDI). This paper examines the … choice of FDI mode, and shows that the profitability of greenfield investment influences this choice not only directly, but …
Persistent link: https://www.econbiz.de/10005082857
This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the local industry. The model endogenizes the multinational's choice between anonymous market...
Persistent link: https://www.econbiz.de/10005083239
I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I...
Persistent link: https://www.econbiz.de/10009320400
I show in this paper that incomplete contracts affect a firm’s decision about serving foreign customers through exports or local sales from an affiliated plant. When contracts between two agents within a firm are too costly to write, the share of multinational firms may be higher or lower...
Persistent link: https://www.econbiz.de/10008727292
This paper uses micro-data on balance sheets, trade, and the nationality of ownership of firms in France to investigate the effect of foreign multinationals on business cycle comovement. We first show that foreign affiliates, which represent a tiny fraction of all firms, are responsible for a...
Persistent link: https://www.econbiz.de/10010604034