The so called resource curse, the fact that countries rich in natural resources often show lower rates of economic growth compared to resource-poor countries, is commonly attributed to the low quality of governance in resource-rich countries. The Extractive Industries Transparency Initiative...

International investment agreements (“IIAs”) provide enforceable protections to foreign investors based on the premise that enforceable investor protections will stimulate greater foreign investment flows, which, in turn, are assumed to promote development. However, as understandings of both...

Despite the economic importance of international foreign direct investment (FDI) flows, investment decisions of multinational firms are not well understood. A multinational firm can establish a subsidiary in a foreign country through greenfield investment or through acquiring an existing firm in...

The aim of the paper is to assess the heterogeneity of German affiliates in the Czech Republic and their mother companies in Germany. Applying cluster analysis to firm-level data from the unique IAB-ReLOC survey, we identify four main groups of firms that partition the sample by broad sectoral...

Much has been written on the distinction between vertical and horizontal foreign direct investment. However, most of the empirical literature relies on indirect and aggregated measures only. The aim of this paper is to help fill this gap by examining the differences between German affiliates in...

Multinational corporations increasingly use royalty payments for intellectual property rights to shift profits globally. This threatens not only the tax base of countries worldwide, it also affects the nature of competition for foreign direct investment (FDI). Against this background, our...

Illicit financial flows (IFFs) constitute a major challenge for development in the Global South, as domestic resource mobilization is imperative for providing crucial public services. While several methods offer to measure the extent of IFFs, each has its benefits and drawbacks. Critically,...

I propose to use tax incentives to attract foreign direct investments (FDI) to developing countries to promote growth, and explain what practical and conceptual changes in the tax systems of developing as well as developed countries (introducing a notion of inter-nation equity) should be made to...

We compare foreign direct investment (FDI) and technology licensing as two modes of entry into a foreign market. While direct entry via FDI dissipates rents in the host country, opportunistic competition from a licensee may erode rents in the entrant's other markets. Since FDI increases...

Globalization has considerably increased the movement of people and goods around the world, which constitutes a key channel of viral infection. Increasingly close economic links between countries speed up the transfer of goods and information, and the knock-on effect of economic crises, but also...