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Knowledge Capital model was developed in order to provide a unified framework. Although this did yield many empirically … additional factor - capital - this raises several questions on how best to match the expanded theory to the data. In this paper …
Persistent link: https://www.econbiz.de/10015051832
This paper considers the effect of acquisition FDI on the knowledge production function. We distinguish between … complementarities in the knowledge assets of the MNE and the target firm as a reason for FDI. In contrast, consistent with technology … sourcing FDI, acquisitions from non-leading countries increase internal R&D efforts. -- MNE ; knowledge production function …
Persistent link: https://www.econbiz.de/10009503803
Multinational enterprises (MNEs) are increasingly dealing with challenges shaped by the new geopolitical and trade environments. Besides traditional tariffs, exporting firms need to comply with regulatory non-tariff measures (NTMs) in the form of technical barriers to trade (TBTs) and sanitary...
Persistent link: https://www.econbiz.de/10014450560
We analyze tax competition between two countries of unequal size trying to attract a foreign-owned monopolist. When regional governments have only a lump-sum profit tax (subsidy) at their disposal, but face exogenous and identical transport costs for imports, then both countries will always...
Persistent link: https://www.econbiz.de/10009623404
We study a multinational enterprise's (MNE) choice of foreign direct investment (FDI) mode in a vertically related market with local input sourcing. We show that the vertical structure of the market and its features play a crucial role for the MNE's decision: backward linkages, enhanced upstream...
Persistent link: https://www.econbiz.de/10010238336
sourcing incentives. We also develop a novel theory of vertical foreclosure as an equilibrium outcome of strategic transfer …
Persistent link: https://www.econbiz.de/10011924645
In this paper we investigate tax/subsidy competition for FDI between countries of different size when a domestic firm is the incumbent in the largest market. We investigate how the nature (public or private) of the incumbent firm affects policy competition between the two governments seeking to...
Persistent link: https://www.econbiz.de/10010343825
Wholesale and retail trade affiliates owned by parent firms in manufacturing account for a considerable fraction of overall affiliate sales. Although quantitatively important, this Export-Supporting FDI (ESFDI) activity has received little attention in the literature. This paper includes ESFDI...
Persistent link: https://www.econbiz.de/10003870817
I present a model of international trade and foreign direct investment (FDI), where FDI is comprised of greenfield FDI and mergers and acquisitions (M&A). Working in a monopolistically competitive environment, merging firms do not reduce competition. Mergers are motivated by efficiency gains and...
Persistent link: https://www.econbiz.de/10008729087
with the aggregate knowledge-capital model evidence and the firm-level evidence of Helpman-Melitz-Yeaple, while still …
Persistent link: https://www.econbiz.de/10003874804