Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers through the entry of multinational firms can be particularly beneficial to domestic firms because of their technological superiority. Yet, the importance of foreign firm's...

This paper show evidence that firms choose from a much larger set of internationalization modes than usually assumed in the international trade literature and that this choice is governed by similar selection processes than the one proposed by Helpman, Melitz, Yeaple (2004 AER). We rely on a...

A great deal of multinationals receive a bundle of hidden or cash subsidizes upon investing in a foreign country. Policymakers often argue that a subsidy today will help locate friends of the investor later on. Using extensive data on FDI investments, we analyze such patterns. In particular, we...

This paper analyses the potential for productivity spillovers from inward foreign direct investment using administrative panel data for firms for Hungary. The productivity spillovers potential (PSP) is expected to be a function of the importance of firm-specific assets (FSA) within...