This paper examines the determinants of the decision to relocate activities abroad for firms that are located in 29 OECD countries. Our theoretical model suggests that firm heterogeneity plays a crucial role for the link between employment protection and relocation. Stricter employment...

Cross-border mergers and acquisitions (Mamp;As) have increased dramatically over the last two decades. This paper analyses the role of trade costs in explaining the increase in both the number and the value of cross-border mergers and acquisitions. In particular, we distinguish horizontal and...

Gravity modelling has been used extensively in analysing trade flows but less so for cross-border investment. Recent theoretical work provides an underpinning for applications to FDI. In this paper we estimate a gravity model to evaluate the potential for increased FDI for a sample of Eastern...

This paper uses annual aggregate data for 36 low or middle income countries covering the period 1995-2001 to test the responsiveness of investment to the sources of finance under (un)favourable regimes for investment. Two sources of private investment finance are considered: private investment...

Governments the world over offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. This paper begins by reviewing possible sources of FDI induced spillovers....

Cross-border mergers and acquisitions (Mamp;As) have increased dramatically over the last two decades. This paper analyzes the role of trade costs in explaining the increase in the number of cross-border Mamp;As. In particular, we distinguish horizontal and non-horizontal Mamp;As and investigate...

We use a panel of more than 100 countries for the period 1980 to 2002 to analyse the relationship between inward foreign direct investment (FDI) and wage inequality. We particularly check whether this relationship is non-linear, in line with a theoretical discussion. We find that the effect of...

A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to...

This paper examines how employment protection legislation affects location decisions of multinationals. Based on a simple theoretical framework, we estimate an empirical model, using OECD-data on bilateral FDI-flows and employment protection indices. We find that, while an "unfavourable"...