Raff, Horst; Ruhr, Marc von der - In: Applied Economics Quarterly (formerly: Konjunkturpolitik) 53 (2007) 3, pp. 299-321
This paper examines the pattern of foreign direct investment (FDI) in producer services. Specifically we construct a model to explain the stylized fact that producer-service FDI tends to follow FDI by downstream industries. Our point is that this may be the result of informational barriers to...