This paper presents a property rights model of the international organization of production, where heterogeneous headquarter firms source from suppliers in the Global South. Due to weak regulatory stringency in the Global South, suppliers can employ a cost-saving technology. Consumers, however,...

High-performance firms typically have two features in common: i) they produce in more than one country and ii) they produce more than one product. In this paper, we analyze the internationalization strategies of multi-product firms at the product-level. We find that the most productive firms...

FDI can be an important channel for developing countries' ability to get access to new technology. The impact of FDI on domestically-owned firms' technology development is less examined but it is frequently argued that technology externalities or demonstration effects could have a positive...

We consider the plant location decision of a multinational, which has the option to invest in a more or aless technologically advanced country. We find that in the absence of exporting by the local firms, themultinational will invest in the country lagging behind, unless the firms in that...

Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single...

This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to the size of a firm's capital stock. Extensive...

The liberalization of economic policies in the last two decades and intensifying market competition tend to be a cause of policy concern for the survival of SMEs in emerging economies like India. These SMEs account for the largest chunk of industrial units and employment in the national economy....

Using data on large and medium sized Austrian manufacturing firms this paper analyzes empirically in which way a high degree of export orientation and foreign production abroad, as two modes of serving foreign markets, are related to the growth performance of domestic production. Robust median...

Existing economic growth models by Harrod-Domar, Solow–Swan, Lucas, and Romer, have no capacity to explain the evolution or the collapse of economic growth of small islands that are inheritably featured by the remoteness, smallness and also their vulnerability to natural disasters in the...

This paper compares the determinants of firm's extensive and intensive growth based on population data of manufacturing firms registered in Slovenia in the 1994-2003 period. The former is measured in terms of employment and the latter is defined in terms of total factor productivity. After...