In recent decades, governments around the world have increasingly used various forms of state aid to try to attract and retain the business activity of foreign-owned multinational corporations. Yet, in most cases, this "commercialisation of state sovereignty" (Palan, 2002) has failed to catalyse...

The main purpose of the paper is to build a balance of payments constraint model with capital inflows, where green innovations are inducers of the structural change process. The main results indicate that green R&D can reduce the growth rate of natural resource use. On the other hand, green...

Due to the proximity of Canada to the United States, the cultural and business similarities, and the long and generally favorable business relations between the countries, many American companies seriously consider acquiring financially attractive Canadian companies. However, recently these...

We examine the question of whether a country benefits by subsidizing the Ramp;D of foreign owned monopoly firms. We allow for any proportion of foreign ownership; and, Ramp;D improves the product so that customers directly benefit. The policy implications are: (1) the optimal subsidy increases...

This paper investigates the welfare effects of private investments prior to trade. A seller of a durable good can privately invest on changing its quality. After the investment, she receives a take-it-or-leave-it offer from a buyer. Both the seller and the buyer value more goods of higher...

Investment by Transitional Corporations (TNCs) in Host Developing Countries (HDCs) have emerged as powerful engine of growth and development in the world economy. Neoclassical trade theory (Heckscher-Ohlin-Samuelson) model nor the product cycle or technology gap theories comes to grips with...