The knowledge-capital model acknowledges that FDI has both vertical as well as horizontal elements. However, there is much controversy with regard to the empirical relevance of vertical FDI. We re-investigate this issue by looking at FDI at a more disaggregated level, using data on bilateral FDI...

This paper presents an empirical study of the effect of foreign multinational companies on the entry of indigenous firms in the fost country, using data for the Irish manufacturing sector. Our starting point is a recent paper by Markusen and Venables (1999), that shows formally that...