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We analyze a firm that produces a final good from multiple intermediates that can each be sourced domestically or from a low-wage country. The model explicitly incorporates that sourcing decisions of intermediates are interdependent. Equilibrium predictions depend crucially on a key modeling...
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motivate the study with an example from Liberia. Then, I evaluate political constraints and FDI for 182 countries between 1996 … and 2022 and demonstrate that the rule of law conditions relationships between constraints on governments and FDI; in … places with high rule of law, constraining government attracts FDI. In contrast, high constraints push investment away in …
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This paper operates at the interface of the literature on the impact of foreign direct investment (FDI) on host … countries, and the literature on the determinants of institutional quality. We argue that FDI contributes to economic … data set of 70 developing countries during the period 1 981 and 2005, and we show that FDI inflows have a positive and …
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the two driving forces of the growth process. FDI plays an important role. However, property rights, a crucial element in …
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The firm-level approach to intra-industry trade reveals that the variation in the number of exporters or exported varieties (extensive margin) accounts for a greater share of the changes in aggregate trade than the variation in the average exports per firm variety (intensive margin). This paper...
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contextualizing the various contributions included in the issue. The main sections are devoted to the determinants of FDI, including …
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