One of the most outstanding features of the trend toward globalization has been the increased importance of foreign direct investment (FDI) flows around the world. This study estimates the determinant of FDI flows using the gravity equation, controlling for the importance of both the traditional...

For firms acting in technological niches the expansion into foreign markets can be a way to increase sales and to thus to recover initial sunk costs over a shorter time frame. Our research, based on survey data for nearly 600 British and German high-tech start-ups, examines whether...

According to the new international trade theory, trade need not be the result of international differences in technology and factor endowments. Instead, trade is the result of the exploitation of scale economies. Under increasing returns, trade is similar to the growth of the labor force and...