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This paper examines the pattern of foreign direct investment (FDI) in producer services. We develop a model of FDI in these services and test its predictions using panel data on U.S. FDI in 25 host countries from 1976 to 1995. We find evidence that, in addition to governmental and cultural...
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Manufacturing companies have recently been seeking differentiation and profit enhancement through the servitization of products. The service economy, with the increase in its proportion of service sector in the total employment and values added, is also accelerating in the developed countries....
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