This paper presents a synergy-based model of foreign investment and international takeovers in industrial countries. Takeovers of (or mergers with) firms abroad are used to appropriate local technology spillovers requiring geographical proximity, exploit intra-firm technology transfers, and...

We formulate a knowledge-based model of direct investment through mergers and acquisitions. Mamp;As are realized to create comparative advantages by exploiting international synergies and appropriating local technology spillovers requiring geographical proximity, but can also represent a...

The paper examines the real per-capita growth effects of the quality of democracy, the rule of law, and capital flows in developing countries. The direct growth effects of democracy are positive and often statistically significant. Moreover, the estimates from a three-stage least-squares...