Taking advantage of the liberalization process under NAFTA, this paper assesses the relative importance of the degree of trade openness and Foreign Direct Investment (FDI) in explaining inter-industry wage differentials for the case of Mexico. Using INEGI's National Survey of Urban Employment...

The new trade theory emphasizes the role of market-share reallocations across firms ("stealing") in driving productivity growth, while the older literature focused on average productivity improvements ("learning"). We use comprehensive, firm-level data from India's organized manufacturing sector...

This paper studies the effects of FDI liberalization on domestic downstream firms’ technology upgrading through two main mechanisms. Domestic final good producers might benefit from horizontal and vertical FDI technological spillovers. These effects can be unequal across domestic firms...

In practice, we often observe that as part of their dual-channel distribution structure, foreign manufacturers carry out foreign direct investment and sell products through domestic retailers, and export products directly through their own EC sites, thereby incurring an export tariff. We revisit...