This paper provides new evidence on the foreign direct investment stocks of German firms. We use firm-level data for the years 1990-2000 to describe the regional and sectoral patterns of German FDI through gravity-type equations. We provide evidence on the patterns of FDI by sector, by size of...

We derive gravity equations from three different general equilibrium models incorporating multinational firms. We show that gravity equations are particularly adapted to the analysis of foreign affiliates' activities of multinational firms. However, the different theoretical models lead to...

Cultural proximity may influence bilateral imports through a preference and a trade-cost channel. In empirical gravity models, conventional measures such as common language or religion fail to separately identify those channels. We use bilateral score data from the Eurovision Song Contest, a...