This paper examines the links between the internationalization mode of firms and market imperfections in product and labor markets. We develop a framework for modelling heterogeneity across firms in terms of (i) product market power (price-cost markups), (ii) labor market imperfections (workers'...

This paper examines the role of uncertainty and capital market imperfection in influencing firm investment. Introduction of uncertainty in the investment model allows for limited expandability and limited reversibility of capital over time other than what is dictated by firm's fundamentals and...