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We examine the economic justification for providing investment subsidies to foreign-owned multinationals. These provide … returns to scale. Offering subsidies to multinationals may be in the national interest if the investment raises the net value …, countries may compete to attract investment. This subsidy competition transfers much of the rents to the multinationals. …
Persistent link: https://www.econbiz.de/10005729953
been obtained. First, policy competition does not change the attractiveness of any country as a location for investment …
Persistent link: https://www.econbiz.de/10010782000
. It analyzes how firm ownership via foreign capital affects the investment location choice of the foreign firm, and policy … location choice of the foreign firm, as does policy competition between the host countries. Further, an increase in the inflow … location. …
Persistent link: https://www.econbiz.de/10011077064
Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a...
Persistent link: https://www.econbiz.de/10011288486
Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a...
Persistent link: https://www.econbiz.de/10011386602
Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a...
Persistent link: https://www.econbiz.de/10011288146
Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a...
Persistent link: https://www.econbiz.de/10011387739
This paper analyzes the effects of distance as a common determinant of exports and FDI in a three factors New Trade Theory model assuming that distance affects both pure trade costs and plant set-up costs. Exports and FDI are not necessarily substitutes with respect to distance since the...
Persistent link: https://www.econbiz.de/10011492642
This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are...
Persistent link: https://www.econbiz.de/10014025384
This paper studies the strategic behavior of multinationals towards weak labor standards in developing countries (South … locating in the South casting doubts on traditional beliefs that multinationals are always attracted to lower wages. Adopting …
Persistent link: https://www.econbiz.de/10010293761