This paper studies the relationship between trust and foreign direct investment (FDI) in a crosssection of countries. Accounting for the issue endogeneity, this paper suggests that countries with a higher level of generalized trust attract more FDI than the low-trust countries. -- trust ;...

The present paper investigates the link between exports and the outward FDI stock using a panel of industries and seven EU countries for the period 1973-2004. In particular, we use the panel causality tests developed by Holtz-Eakin, Newey, and Rosen (1988). Estimates using system GMM estimators...

FDI inflows play a very important role in increasing the productivity of factors of production through the channel of technology transfer and establishment of MNCs. This study empirically analyzes the causal relationship, for both short and long run, between FDI inflows, labor productivity and...

This paper estimates establishment-level employment effects of investment grants in one of the German Federal States receiving the most support. We analyze general treatment effects, as well as the influence of heterogeneity in the characteristics and economic environment of the establishment on...