consequences of attracting FDI since it allows to study through which channels FDI might raise welfare - including the not yet … cooperative FDI policy scenario and find that supranational coordination leads to welfare gains. -- Multinational firms ; FDI … ausländische Direktinvestitionen (FDI). Das Modell zeichnet sich durch endogen bestimmte Firmeneintritte, Löhne …

This paper agrues that the prices of intermediates may influence the pattern of foreign direct investment (FDI). In our … model, two downstream firms select whether to serve each other's markets through exports of FDI, always sourcing the … fact that two-way FDI occurs when the market sizes of the two countries are similar. Welfare analysis provides two …

are heterogeneous in their productivity levels. I show that the use of a small subsidy raises welfare in the FDI host … most productive exporters to switch to servicing the host's market via FDI. I further show that the welfare gain from a … subsidy to variable costs is larger than from a subsidy to the fixed cost of conducting FDI, since a variable cost subsidy …

market is a Cournot oligopoly. Due to a fixed supply of skilled labor in each country, such foreign direct investment (FDI …) raises the host wage and reduces the source wage. A subsidy to FDI results in higher profits for source firms but lower … profits for host firms. Thus, each country experiences conflict in setting its policy toward FDI. Workers favor inward FDI but …