We study the choice of an MNE in deciding whether to establish a branch plant within a region, explicitly taking into account exit, as well as entry, costs. Protecting workers by having stict lay-off rules deters potential investment while subsidies attract it.

We examine the economic justification for providing investment subsidies to foreign-owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering subsidies to...

A model of strategic investment and trade is incorporated in a politiacl economy framework of the Grossman-Helpman type to study the impacts of foreign direct investment (FDI) on the formulation of trade and industrial policies in the host country.

A two-country (North-South) endogenous-growth model is constructed where foreign direct investment (FDI) acts as the conduit of cross-border knowledge spillovers and learning.

This paper develops a Cournot duopoly in which a domestic firm competes with a technologically more advanced foreign-owned firm on the home market.

The process of growing integration of contemporary economic relations, manifested in the last decades of the twentieth century and the beginning of the new millennium, was the premise of the expansion of transnational corporation and by this means, of the increased investment flows, technology...

This paper examines how United States' multinational enterprises (MNEs) spread their foreign activities among concurrent destinations. An econometric estimation of the share gravity model is presented to show that, unlike previous applications of the gravity model to the study of foreign direct...