This study investigates the economic interdependence between Turkey and the European Union (EU). The main questions addressed are (i) Do Turkish and European business cycles move together? and (ii) Are European business cycles transmitted to Turkey? This investigation is important as Turkey...

This paper constructs a dynamic North-South trade model with outsourcing and endogenous innovation. Production of high quality goods is first performed in the North (Northern phase), then split between the North and the South (Outsourcing phase), and finally shifted to the South (Southern...

We use data on the sources of debt finance of U.S. majority-owned foreign affiliates in 53 countries over the period 1983 to 2001 to examine the role of financial market development, and exposure to host country-specific risk on the financing choices of these affiliates. We find that total...

Disentangling the labor market implications of increased foreign capital flows remains important. This paper provides a unifying framework allowing to study the wage implications of multinational enterprise (MNE) activities, pointing to the importance of controlling for both labor market...

Multinational enterprises (MNEs) are able to shift investments between home and host countries to minimize the negative effects of changes in the macroeconomic environment. This article formalizes a model that allows studying this investment-smoothing behavior of MNEs facing inflation taxes in...

Although the literature on the effects of both aid and foreign direct investment (FDI) on development is vast, the relationship between aid and FDI has not been sufficiently explored. This paper empirically investigates the effect of aid on foreign direct investment in view of the hypothesis...