This paper studies the effect of FDI firms' financial advantages on firm productivity in host countries and examines the related policy implications. If FDI firms face lower financing costs but have higher fixed production costs than local firms, a simple Melitz-type model predicts that because...

We examine and compare the effects of greenfield FDI and cross-border mergers and acquisitions (M&As) on total factor productivity (TFP) in developed and developing host countries of FDI. Using panel data for up to 123 countries over the period from 2003 to 2011, we find that greenfield FDI has...

Spanish Abstract: En el presente artículo se plantea como objetivo la caracterización de las empresas transnacionales (ETN), su importancia a escala global y su impacto en los países en desarrollo. Para ello se sistematiza la información relacionada con el tema, teniendo en cuenta su...

We show that traditional gravity variables play a significant role in explaining trade flows related to global value chain participation. We find evidence that cooperation costs - measured by linguistic and geographical proximity - are more relevant for trade that reflects cross-border...

The rapid rise in global fragmentation - foreign investment, global supply chains, and 'production sharing' - is fundamentally reshaping the multilateral trading system. This paper uses a simple economic modeling framework to understand how the global fragmentation phenomenon may reshape the...

This report analyzes the specific factors that affect the competitiveness of developing countries in global value chains (GVCs), and how these factors differ across four major economic sectors: agriculture, extractive industries, manufacturing and offshore services. Although integration into...

The rapid rise in global fragmentation — foreign investment, global supply chains, and ‘production sharing — is fundamentally reshaping the multilateral trading system. This paper uses a simple economic modeling framework to understand how the global fragmentation phenomenon may reshape...

I examine whether a developing or transition country’s political and social engagement in the international system — labeled as a country’s political and social globalization — has a positive influence on its ability to attract foreign direct investments (FDI), and hence, on the amount...

This paper describes seven salient features of trade integration in the 21st century: trade integration has been more rapid than ever (hyperglobalization); it is dematerialized, with the growing importance of services trade; it is democratic, because openness has been embraced widely; it is...