This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two …-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are … possible: (i) one with unilateral FDI, where one firm is a multinational firm, and the other firm is a national firm; (ii) and …

This paper examines how free-trade agreements and customs unions affect the location of foreign direct investment (FDI …) and social welfare, taking into account that governments may adjust taxes and external tariffs to compete for FDI …. Conditions are identified under which a free-trade agreement leads to FDI and under which this improves welfare. The welfare …

This paper considers the effect of acquisition FDI on the knowledge production function. We distinguish between … complementarities in the knowledge assets of the MNE and the target firm as a reason for FDI. In contrast, consistent with technology … sourcing FDI, acquisitions from non-leading countries increase internal R&D efforts. -- MNE ; knowledge production function …