Utilizing a three-sector endogenous growth model, we study the effects of foreign direct investment (FDI) on the dynamics of urban unemployment, labor income and capital income as well as national welfare in a Harris-Todaro economy. It is shown that more FDI can affect the economy's dynamics and...

Analyses the influence of export share and domestic content policies on the level of capital investment undertaken by a multinational firm both in its home country and in the foreign country in which it operates. These protective policies, in force in both developing and industrialized...