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 paper aims to advance research on transnational corporations (TNCs) and international business policy by identifying the role and influence of foreign-owned TNCs in global value chains (GVCs) compared with those of domestically owned firms. We do this by dividing the topology of trade in...

International ownership alters the role of multilateral trade institutions by redefining pecuniary externalities among countries. Regardless of the underlying cause ndash; whether foreign direct investment, international portfolio diversification, cross-country mergers, or multinational firms...

Could foreign direct investment (FDI) contribute to improving developing countries' participation in global value chains (GVC)? This is the main issue addressed in this paper. Indeed, FDI seems to be, at least theoretically, a mean to speed up developing countries' participation in GVCs in a...

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...

Firm heterogeneity has been extensively linked to patterns in market engagement, particularly where foreign markets are concerned. Recent studies have extended the effects of firm heterogeneity to political markets, identifying its influence on policy stances and engagement in the policy...

Foreign direct investment (FDI) as a driver of growth is important in today´s globalized economy. It is extremely difficult for economies to grow sustainably without economic interactions outside their borders. However, there has been a debate on the impact of FDI inflow on economic expansion....