In order to diversify their risks, firms facing increased demand uncertainty in their domestic market may choose to increase their investment abroad by transferring production to the more stable host economies. Using a gravity model, we test the assumption that foreign direct investment is...

This paper analyses the evolution of the textile-clothing sector in Europe. This industry is characterised by China\'s accession to the WTO in 2001 and the dismantling of quotas with the end of the Agreement on Textiles and Clothing on 1 January 2005. Since the 90\'s, the European directives on...