This study presents the first empirical test with German establishment level data of a hypothesis derived by Helpman et al. (2004) in a model that explains the decision of heterogeneous firms to serve foreign markets either through exports of foreign direct investment: only the more productive...

The paper analyzes the phenomenon of income inequality in ten countries from Eastern and Central Europe (ECE), by highlighting two aspects: (1) the link between growth and income inequality; (2) the effects of trade openess and other key factors on income inequality, such as: foreign direct...