We provide an analysis of the impact of migration on the skilled- unskilled wage gap. In particular, we show the possibility of a rise in the wage gap following the migration of skilled (unskilled ) labor.

This paper presents a two-country model of duopolistic market with vertical relations which leads to a paradoxical result: when upstream firms possess sufficient bargaining power, cost-reducing FDI may actually enhance the rival firm's profit.

It has recently been shown that the firm size distribution is initially skewed to the right and then evolves over time to become more lognormal, and argued that this is likely due to firms initially facing financial constraints, see Cabral and Mata(2003). We conjecture that, if this is true,...

Using threshold regression techniques developed by Caner and Hansen(2004),this paper examines whether the effect of foreign direct investment (FDI) on economic growth is dependent upon different absorptive capacities. There are three absorptive capacities, namely, initial GDP, human capital and...

To empirically examine the impact of foreign direct investment and socio-cultural similarity on international trade between Russia and developed economies, we estimated a gravity model using panel data from Russia and 23 OECD member countries. To deal with the problem of Jensen's inequality, in...

This paper broadens the scope of Foreign Direct Investment (FDI) models by deriving a gravity equation for foreign re-investment. Re-investments in foreign subsidiaries are an equally frequent and unstudied phenomenon in international economics. However, previous empirical studies estimate a...

This paper evaluates the importance of an economy's financial development in determining the effect of exchange rate volatility on foreign direct investment (FDI) for a panel of 39 emerging economies over 35 years. Results show that the impact of exchange rate volatility on FDI in economies with...

This article analyzes the impact of macroeconomic performances on the inflow of Foreign Direct Investment (FDI) in the Central African Economic and Monetary Community (CEMAC)'s Countries over the period 1995 – 2010, Using a dataset which breaks down FDI flows into primary, secondary and...

We analyze foreign equity caps for international joint ventures. We develop a partial equilibrium model in which foreign equity caps are determined endogenously and find an interesting property, named a welfare indifference property i.e., maximization of domestic welfare and that of world...