consequences of attracting FDI since it allows to study through which channels FDI might raise welfare - including the not yet … cooperative FDI policy scenario and find that supranational coordination leads to welfare gains …

are heterogeneous in their productivity levels. I show that the use of a small subsidy raises welfare in the FDI host … most productive exporters to switch to servicing the host's market via FDI. I further show that the welfare gain from a … subsidy to variable costs is larger than from a subsidy to the fixed cost of conducting FDI, since a variable cost subsidy …

market is a Cournot oligopoly. Due to a fixed supply of skilled labor in each country, such foreign direct investment (FDI …) raises the host wage and reduces the source wage. A subsidy to FDI results in higher profits for source firms but lower … profits for host firms. Thus, each country experiences conflict in setting its policy toward FDI. Workers favor inward FDI but …

analysis of distribution-oriented FDI has, however, received little attention which is at least partly due to the lack of …-oriented FDI is based on the trade-off between fixed and variable costs. …

overall affiliate sales. Although quantitatively important, this Export-Supporting FDI (ESFDI) activity has received little … attention in the literature. This paper includes ESFDI into a model of trade and horizontal FDI with heterogeneous firms. ESFDI … in the home country. This introduces some complementarity between trade and FDI. In the model falling trade costs lead to …

I present a model of international trade and foreign direct investment (FDI), where FDI is comprised of greenfield FDI … generates two-way flows of both M&A and greenfield FDI. Greater proximity to a market makes more firms choose greenfield FDI …