We construct an oligopoly model in which a multinational firm has a superior technology compared to local firms. Workers employed by the multinational acquire knowledge of its superior technology. The multinational may pay a wage premium to prevent local firms from hiring its workers and thus...

We analyze optimal host country policy toward multinational production in a three country model. Oligopolists from two source countries invest in a common host country to take advantage of low costs. The country with the smallest labor supply per firm has the highest wage in the absence of...

The authors analyze national and international policy options to encourage the international transfer of technology, distinguishing between four major channels of such transfer: trade in products, trade in knowledge, foreign direct investment, and intra-national and international movement of...

What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on...

The authors use a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from foreign direct investment. Investors'country of origin may matter for spillovers to domestic producers in upstream sectors (supplying...

We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm contracts with multiple downstream firms. Royalties control competition between own downstream firms...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>This paper analyzes the causes and consequences of regional exhaustion of intellectual property, a discriminatory policy under which a set of countries permit parallel imports from one another but not from the rest of the world. A three-country model is...</p>

type="main" xml:lang="en" <title type="main">Abstract</title> <p>We study competition for foreign direct investment (FDI) between host countries and the implications of tax policy coordination between them. By reducing its tax on multinational production, a host country can attract additional FDI, some of which is diverted...</p>