Foreign Direct Investment (FDI) is not only a transfer of capital, but a complex bundle of capital and firm-specific assets like production and management know-how. In particular, the transfer of production know-how improves overall productivity of FDI-receiving firms and to some extent also...

For high wage countries, such as Austria, employment growth in foreign affiliates abroad is commonly expected to substitute for jobs at home. Estimates from bilateral data on the foreign and domestic activities of Austrian manufacturing firms over the period 1990-1996, covering the 10 most...

Conjectural variation models are popular in empirical research as they infer the degree of market power from real data. IO-theorists, however disapprove it for lack of theoretical foundation arguing that dynamic reactions are forced into a static model with the strategy space and time horizon...

We find very fast convergence in productivity for the 99 3-digit European industries over the 1985-1998 period. According to our estimates half of any productivity gap is closed on average in 10 years. The speed of convergence is much higher than obtained previously in the literature....

Using data on large and medium sized Austrian manufacturing firms this paper analyzes empirically in which way a high degree of export orientation and foreign production abroad, as two modes of serving foreign markets, are related to the growth performance of domestic production. Robust median...

This paper analyses the effects of Agenda 2000's policy reform on the stocks of outward FDI to the European Union member countries. In a three-factors proximity-concentration New Trade Theory model we indentify the channels of influence on the FDI decision. In the empirical part, we estimate a...

This paper analyzes the effects of distance as a common determinant of exports and FDI in a three factors New Trade Theory model assuming that distance affects both pure trade costs and plant set-up costs. Exports and FDI are not necessarily substitutes with respect to distance since the...

The envisaged EU enlargement will lead to a redirection of Structural and Cohesion Funds expenditures from current to new EUmembers. This redistribution of funds makes the accession countries even more attractive as a location of FDI. Using a logistic regressions approach, this paper shows that...

The envisaged EU enlargements will lead to a redirection of Structural and Cohesion Funds expenditures from current to new EU members. This redistribution of funds makes the accession countries even more attractive as a location of FDI. Using a logistic regressions approach, this paper shows...

We estimate a linear approximation of the market potential function derived in geography and trade models. Using a spatial econometric estimation approach, border effects can be identified by a differential impact of neighboring regions' purchasing power, depending on whether two regions are...