We combine economic and institutional theories of clustering in foreign entry location choice in an overarching social learning conceptualisation. Prospective entrants learn about the attractiveness of alternative locations by observing the entry choices of previous investors ("models"). We...

We examine the impact of buyer-supplier relationships within business group on capital goods trade in the context of foreign direct investment by buyer firms and capital goods producers. A simple model in which cost-reducing relationship specific investments are underlying business group ties...