This chapter examines how international flows of technological knowledge affect economic performance across industries and firms across different countries. Motivated by the large share of the world's technology investments made by firms that are active across country borders, we focus on...

This paper studies the effect of foreign direct investment (FDI) on the transmission of international business cycles. I document for the G7 countries between 1991 and 2006 that increases in bilateral FDI linkages are associated with more synchronized investment cycles. I also find that the...