The Central- and East European Countries have lowered their corporate tax rates substantially in order to induce shifts of production capacity to their countries. This paper analyses empirically how inward Foreign Direct Investment (FDI) flows channeled to these countries reacts to these tax...

In line with previous literature this paper finds that strict employment protection legislation has a negative impact on the volume of inward Foreign Direct Investment. Rigid labor markets result in high adjustment and exit costs which deter foreign investments. We also find that the deterrent...

The stock of robots used in industrial production more than doubled over the last two decades. Empirically, the direction of the association between automation and (un-)employment varies across countries. Which factors explain this cross-country variation? We argue that differences in collective...