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Despite the microeconomic evidence supporting the superior idiosyncratic productivity of multinational firms (MNFs) and their affiliates, cross-country studies fail to find robust evidence of a positive relationship between foreign direct investment and growth. In order to study the aggregate...
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Several developing countries impose high tariffs, directly or indirectly, on imports of manufactured goods such as vehicles and machinery. In many cases governments argue that they need such policies to protect domestic manufacturing industries from foreign competition while simultaneously...
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I present a dynamic fixed cost model of export participation extended by a capital theoretic concept of the customer … in the sample saw a strong increase in export activity which provides a suitable case study for the predictive power of … able to reconcile a strong export reaction to trade liberalizations with a low elasticity of aggregate exports to exchange …
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Recent discussions of exchange rate determination have emphasized the possible role of foreign direct investment in influencing exchange rate behavior. Yet, there are few existing models of multinational enterprises (MNEs) and endogenous exchange rates. This paper demonstrates that the entry...
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