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Within the European Union, there exists a fundamental tension between the fiscal sovereignty of its Member States, in particular in the field of direct taxation, and the requirements of the Internal Market, which aim at the abolition of any regulatory or fiscal obstacles to cross border movement...
Persistent link: https://www.econbiz.de/10013089510
We set up a trade model where three countries compete for an exogenous number of firms. Our innovation lies in the geography of the model. Of the three countries, one is the hub through which all trade takes place. First, we establish the natural geography of the region, which is given by the...
Persistent link: https://www.econbiz.de/10013072512
) on foreign direct investment (FDI) in Sub-Saharan Africa (SSA). The analysis includes panel data on 25 host and 35 source … African Community (EAC) and Southern African Development Community (SADC) are associated with a significant increase in FDI … that are less similar to other members especially benefit from deeper integration in terms of FDI …
Persistent link: https://www.econbiz.de/10012964288
We investigate how North-South Integration affects the location of FDI between the two regions. The theoretical …, we use a difference-in-differences estimator to find that NAFTA partner FDI in Mexico has increased since the inception … of NAFTA above what is implied by other determinants of FDI and the global upward trend during this time. Other countries …
Persistent link: https://www.econbiz.de/10012727169
We introduce the effect of the political regime in a model of North-South bilateral foreign direct investment (FDI …), and test whether it matters for the nature of FDI inflows to emerging markets. Alternative political regimes in the host … country may affect the incentive for foreign investors to implement horizontal rather than vertical FDI, if the political …
Persistent link: https://www.econbiz.de/10012729580
for foreign direct investors. Other FDI influencing factors such as economic development, macroeconomic stability, trade … and financial development, though very important conventional FDI location pull factors, were insignificant in all the …
Persistent link: https://www.econbiz.de/10012953156
This paper examines the relationship between agglomeration economies and relative wage costs in influencing location of multinational corporations. An inflow of firms to certain regions and industries is likely to increase demand for labor. If mobility of labor is low increased costs can be...
Persistent link: https://www.econbiz.de/10012953321
Exchange rates have been changed unusually large these days. From 2011 to 2016, the Euro and the Japanese Yen have depreciated against the US Dollar by more than 25 percent. According to a theory, since competitively valued exchange rate helps to boost export growth, we should have observed a...
Persistent link: https://www.econbiz.de/10012906703
We distinguish the heterogeneous productivity spillovers from foreign direct investment (FDI) at the firm level. Based … inputs --- a domestic firm enjoys a higher productivity if it gains access to more inputs sold by FDI firms (general … productivity-enhancing effect) and it is geographically closer to upstream FDI firms (proximity effect). Using the Chinese firm …
Persistent link: https://www.econbiz.de/10012891709
This paper investigates the impact of deep integration in preferential trade agreements (PTAs) on multinational production (MP), i.e. the production carried out by firms outside of their country of origin. Using a structural gravity model, we find that tariff reductions have a positive impact on...
Persistent link: https://www.econbiz.de/10012893148