We adopt the framework of Schumpeterian creative destruction formalized by Aghion et al. (2009) to analyze the impact of foreign entry on the productivity growth of domestic firms. In the face of foreign entry, domestic firms exhibit heterogeneous patterns of growth depending on their...

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...

In 2008, India will likely overtake China as the world's fastest growing economy and become one of the largest economies globally. Foreign investment is increasing dramatically and business opportunities abound for those who know how to find them. With a growing middle class and booming markets,...