One of the most important predictions made in recent international trade literature based on heterogeneous firms concerns the within-industry job reallocation from firms not involved in international markets to those that are. This paper quantifies the extent of this reallocation using a dataset...

We describe a simple model in which domestic firms decide whether to serve a foreign market through exports or horizontal foreign direct investment (FDI). This choice involves a trade-off between the higher variable trade costs associated with exports and the higher fixed set-up costs associated...

This paper analyses to what extent the decision to start exporting may be subject to spillovers of the internationalisation behaviour of other (foreign and domestic) firms. We distinguish between two possible channels: effects on productivity and effects on the perceived level of sunk costs of...

We empirically investigate the effects of the internationalisation of Belgian firms on domestic demand for production and non-production workers, which are used as proxies for unskilled and skilled labour. Distinction is made between home-employment effects of firms’ internationalisation,...

The aim of this paper is to examine causal effects of outward foreign direct investment activities of corporations that start expanding abroad on a large number of domestic performance indicators. Our results indicate that there is no evidence in our data to show that FDI has statistically...

The purpose of this paper is to analyze strategic policy implications arising from possible threats and opportunities in the face of the emergence of China as an economic powerhouse. The focus of the paper is not on the regional approach through mainly regional co-operations but more on policy...

China's impressive development since the introduction of market-oriented reforms in the late 1970s has had a considerable impact on the world economy. After a first decade and a half of cautious experiments with liberalization, markets, and internationalization, Chinese reforms accelerated in...

This paper tries to see the role of the actual expenditure on pollution and control equipment in a particular State on the location choice of foreign firms in India. Based on Levinson (2001), we compute Industry-adjusted pollution abatement expenditure index for 25 States for different time...

This study examines the differential response of various international financial flows to the post 9/11 episode of terrorism in the context of a South Asian country. Using monthly data for the period from January 2003 to December 2014, we analyze the impact of terrorism in Pakistan on the...

Using firm-level data, this paper investigates whether Foreign Direct Investment (FDI), and hence Multinational Enterprise (MNE) presence, explains India's improved export performance during post-reforms. The recent literature stresses that firm heterogeneity gives some firms an edge over others...