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The decision over exports vs. foreign direct investment (FDI) is usually discussed in an extension of the so-called Melitz model where firms with heterogeneous costs compete in a monopolistically competitive industry. The present paper starts from a situation where a potential foreign entrant...
Persistent link: https://www.econbiz.de/10011956704
According to static models of industrial organization, a rise in competition decreases prices. In this paper, I test whether this conclusion can be reversed in the mobile telecommunications markets where dynamic efficiency effects might be significant. The empirical test relies on the change in...
Persistent link: https://www.econbiz.de/10011445483
We consider the plant location decision of a multinational corporation (MNC), which has the option to invest in a more or in a less technologically lagging country, and which aims to use its foreign plant as an export-platform. We show that the plant location decision of the MNC depends on...
Persistent link: https://www.econbiz.de/10012732577
In many industries firms can enter into new markets either by building a new plant (greenfield entry) or by acquiring an existing incumbent facility. The structural empirical literature on entry has usually ignored acquisitions as an option for entrants. Understanding what drives this decision...
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Globalisation, has intensified the demand preference for quality labour, that embodies more knowledge and competency … trade and FDI are found to have significant impact on the upsurge of labour productivity growth in BRICS, where the …
Persistent link: https://www.econbiz.de/10011374061
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, modernising product market regulations, developing skills, and reconsidering barriers to trade and investment. OECD simulations … suggest that India would be a major beneficiary were barriers to trade and investment be reduced multilaterally. In the … absence of a multilateral agreement, the economy would also gain from a unilateral liberalisation of trade and investment …
Persistent link: https://www.econbiz.de/10012203276
Norway has a well-functioning labour market with high employment and a compressed wage distribution, contributing to low inequality. Norway nevertheless faces challenges from a trend decline in employment rates among the young and prime-age men. Furthermore, immigrants and people with...
Persistent link: https://www.econbiz.de/10012203282