We develop and econometrically estimate a model of the location of industries across countries. The model combines factor endowments and geographical considerations, and shows how industry and country characteristics interact to determine the location of production.

We study the choice of an MNE in deciding whether to establish a branch plant within a region, explicitly taking into account exit, as well as entry, costs. Protecting workers by having stict lay-off rules deters potential investment while subsidies attract it.

The paper provides a critical analysis of the operation of performance-based pay in the Australian Public Service (APS) from 1992 to 1996 and questions the desire by the Federal Coalition Government for 'further experimentation' with such managerial incentives. The paper argues that the...