Though inflation rates in EMS countries have significantly converged over the past decade, exchange-rate adjusted price levels have sharply diverged and continue to do so, albeit at a decreasing rate. This violation of purchasing power parity (PPP) may be viewed as a stylised fact in...

This paper aims at verifying the impact of fiscal variables in the multinational firms' localisation choices within the European Union Member States. In particular, the sensitivity of bilateral foreign direct investments towards EU member countries to the receiving country's fiscal...