Showing 1 - 10 of 13
We study the incentives to expropriate foreign capital under democracy and obligarchy. We model a two-sector small open economy where foreign investment triggers Stolper-Samuelson effects through reducing exporting costs. We show how incentives to expropriate depend on the distributional effects...
Persistent link: https://www.econbiz.de/10005357542
The recent literature on endogenous political institutions highlights domestic economic factors, such as recessions, economic growth and inequality, as key determinants of political transitions. We argue that international capital flows and the possibility that foreign governments, in order to...
Persistent link: https://www.econbiz.de/10005357556
We model subsidy competition for a foreign MNC’s investment in a two-country PTA. Taking into account acquisitions as an alternative investment mode weakens the case for subsidising greenfield investment, even for a single government. Considering competition between member states, it widens...
Persistent link: https://www.econbiz.de/10005357584
There is an extensive literature that examines the relationship between foreign direct investment (FDI) and the productivity and competitiveness of domestic firms. Using estimation techniques from the productivity spillover literature, this paper tests for the presence of environmental...
Persistent link: https://www.econbiz.de/10005357615
Living in a democratic society has been internationally recognized as a basic human right. While most of the literature tries to identify the effect of democracy on economic prosperity, little work has been done to understand the determinants of economic growth under democracy. This paper...
Persistent link: https://www.econbiz.de/10005738235
We model subsidy competition for a foreign MNC’s investment in two potential PTA partners. Taking into account acquisitions as an alternative investment mode weakens the case for subsidising greenfield investment. Competition between countries results in welfare losses, even more so if...
Persistent link: https://www.econbiz.de/10005738248
In a small open economy with heterogeneous firms, in which tariffs determine the mass of active firms, the gains from trade liberalization depend positively on the level of firm vertical heterogeneity and negatively on transportation costs. The benefits from temporary protection depend on the...
Persistent link: https://www.econbiz.de/10005086698
We identify characteristics that affect firms' ability to learn from their export activities. Our analysis is based on a panel of Argentinian firms spanning 1992-2001 and we employ Granger causality tests, propensity score matching techniques and GMM regressions. The characteristics we find to...
Persistent link: https://www.econbiz.de/10005086706
Regional integration affects location decisions of MNCs and therefore influences each member country’s provision of investment incentives, which in turn may trigger relocation. As a consequence, subsidy competition increases as integration proceeds. We analyze the welfare consequences of this...
Persistent link: https://www.econbiz.de/10005086722
In a small open economy with heterogeneous firms, in which tariffs determine the mass of active firms, free trade optimality depends positively on the level of firm heterogeneity and negatively on transportation costs. The benefits from temporary protection depend on the level of backwardness:...
Persistent link: https://www.econbiz.de/10005086723