This paper develops a theory of strategic vertical DFI (direct foreign investment) to suggest an explanation for the empirical puzzle of the missing "pollution-haven" effect. It focuses on a firm's strategic incentive to create multi-market interdependence (in addition to other conventional...

This paper investigates how input trade liberalization affects fi rm-level wage inequality between skilled and unskilled labor. A fall in input tariffs generates increased fi rm pro fits, which, in turn, widens wage inequality since skilled labor enjoys a larger proportion of the incremental pro...

This paper develops a theory of strategic vertical DFI (direct foreign investment) to suggest an explanation for the empirical puzzle of the missing "pollution-haven" effect. It focuses on a firm's strategic incentive to create multi-market interdependence (in addition to other conventional...