It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10...

This paper explores the connection between the external opening of China and differences in innovation across Chinese regions. Controlling for locational advantages and fixed regional characteristics, for the period 1995-2010 overall we find that regions that have increased most the connections...

Abstract With the help of a theoretical model we analyze the relation between equity sharing in an international joint venture (EJV) and local public goods provision in a setting where the local government faces a commitment problem to provide public services ex post to the set-up of the firm....

Abstract Why do levels of trade protection differ so much across countries? We argue that differences in electoral rules and executive powers may play a significant role. We develop a theoretical model and show that countries that have a majoritarian electoral system may be more inclined to have...

Abstract We provide an explanation for why centralisation of political decision making results in overspending in some policy domains, whereas too low spending persists in others. We study a model in which delegates from jurisdictions bargain over local public goods provision. If all of the...

If voters care for the relative supply of public goods compared to otherjurisdictions, decentralized provision of public goods will be too high.Potentially, centralization internalizes the negative externalities fromthe production of these `conspicuous' public goods. However, in amodel of...

Abstract This paper analyzes the effects of legislative bargaining in the EU on public goods provision and lobbying. We argue that delegation to a single policy maker at the centralized level -which we call supranational policy making- increases lobbying expenditures. When policy in the center...

Abstract A common claim is that nations should cooperate in environmental policy making. However, there is little empirical support that noncooperative decision making results in too low environmental standards and taxes. We develop a theoretical model and show that if the median voter cares...

We study the relation between formal incentives and social exchange in organizations where employees work for several managers and reciprocate to a manager's attention with higher effort. To this end, we develop a common agency model with two-sided moral hazard. We show that when effort is...

In this paper we explore the nature and effects of the Economic Partnership Agreements (EPAs) between the EU and groups of African, Caribbean and Pacific (ACP) countries. We argue that the direct economic effects from reciprocal trade liberalization - both positive and negative – may be...