By lowering the cost of trade between the country of residence and the country of birth, migrants appear to reduce trade with other countries, so that the overall effect on aggregate trade is small.The effects of migrants on foreign direct investment appear to be different. Bilateral investment...

The gravity model has provided a tractable empirical framework to account for bilateral flows not only of manufactured goods, as in the case of merchandise trade, but also of financial flows. In particular, recent literature has emphasized the role of information costs in preventing larger...

The rapid growth in the foreign-born population in many high and middle-income countries in the past decades has prompted much research on the socio-economic impacts of immigration. The migration issue has become one of the most debated subjects in many developed countries. Since the early...

The gravity model has provided a tractable empirical framework to account for bilateral flows not only of manufactured goods, as in the case of merchandise trade, but also of financial flows. In particular, recent literature has emphasized the role of information costs in preventing larger...

This paper summarises the economic analyses of the potential impact of Brexit on the United Kingdom, European Union (EU) and euro area performed by members of and contributors to the Brexit Task Force, a group reporting to the International Relations Committee of the European System of Central...

To examine the effects of heterogeneous labor mobility on the distribution of industries and analyze the subsidy policy for attracting firms, this paper develops an analytically solvable new economic geography model, which incorporates heterogeneous locational preferences and an intra-industry...

To answer whether capital mobility exacerbates or dampens the agglomerative tendency of footloose entrepreneurs, this paper incorporates a footloose-capital with a footloose-entrepreneur manufacturing industry based on a tractable analytical structure with two identical regions. The model shows...

In the past decade, U.S. software firms have increasingly utilized the low-cost information technology (IT) labor force in India. Companies wishing to capture the benefits of outsourcing can engage in contracting (hiring an Indian contracting company to perform the service) or foreign direct...

Gravity equations explaining foreign affiliates' sales are ad hoc and hence, estimated coeffcients are hard to interpret. We therefore provide the theoretical underpinnings of the gravity equation applied to the analysis of sales of foreign affiliates of multinational firms. We argue that the...

This paper constructs five indicators that a multinational firm must take into account when deciding the location of its offshore units. These indicators are: human capital; skilled labour cost; quality of infrastructure; business environment; and market size. The indicators are based on over 100...