This paper argues that the more open a city is to immigration, the more likely it is to welcome -- and hence also receive -- foreign direct investment. If immigration is allowed to complement the inflow of foreign capital, urban rent rises by more. This extra rise in rent aids in appeasing...

We suggest that public housing matters for FDI. We assume that FDI creates gains for some residents and losses for others. Losers from FDI will oppose FDI. To win support for FDI, local government may want to pay compensation in cash. In the paper’s model, however, cash payments are not...

Typically, a small and open economy trades goods at given world prices. Here, we present a model of a very open small economy, where capital and labour are internationally mobile, too. When investing into infrastructure, the economy’s government attracts not only mobile capital but mobile...

We suggest that public housing matters for FDI. We assume that FDI creates gains for some residents and losses for others. Losers from FDI will oppose FDI. To win support for FDI, local government may want to pay compensation in cash. In the paper’s model, however, cash payments are not...

Typically, a small and open economy trades goods at given world prices. Here, we present a model of a very open small economy, where capital and labor are internationally mobile, too. When investing into infrastructure, the economy’s government attracts not only mobile capital but mobile...