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In this paper, we propose the technological complexity of a product and the level of Intellectual Property Rights (IPRs) protection to be the co-determinants of the mode through which multinational firms purchase their goods. We study the choice between intra-firm trade and outsourcing given...
Persistent link: https://www.econbiz.de/10009246552
We estimate the effects of foreign direct investment (FDI) acquisitions on firm-average and worker-specific wages using …-long panel with 4,926 foreign acquisitions to match on pre-acquisition data and to control for fixed effects for firms, detailed … on average wages. In an extension to 983 foreign acquisitions subsequently divested to domestic owners, we find that much …
Persistent link: https://www.econbiz.de/10010699514
Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers through the entry of multinational firms can be particularly beneficial to domestic firms because of their technological superiority. Yet, the importance of foreign firm's...
Persistent link: https://www.econbiz.de/10005404545