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We analyze whether firms that establish their first affiliate in a foreign country have a different pattern of growth …
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Gravity equations explaining foreign affiliates' sales are ad hoc and hence, estimated coeffcients are hard to interpret. We therefore provide the theoretical underpinnings of the gravity equation applied to the analysis of sales of foreign affiliates of multinational firms. We argue that the...
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Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers through the entry of multinational firms can be particularly beneficial to domestic firms because of their technological superiority. Yet, the importance of foreign firm's...
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We propose a multi-country general equilibrium model with three sectors and heterogeneous firms to analyze the linkages … each other and one "workbench country" that specializes on the production of an intermediate good and engages in inter …-industry trade with each of the advanced countries. We show analytically that a closer integration of a "workbench country" into the …
Persistent link: https://www.econbiz.de/10003951208
The business literature has long recognized the importance of multinationals’ distribution networks. The empirical analysis of distribution-oriented FDI has, however, received little attention which is at least partly due to the lack of appropriate data. We outline a slightly modified version...
Persistent link: https://www.econbiz.de/10003954210
Recent initiatives to hold back cross-border mergers and acquisitions for ‘strategic’ reasons have made headline news. We discuss whether the initiatives may mark the start of a new protectionist era. We argue that standard globalization indicators show no such signs. However, an increasing...
Persistent link: https://www.econbiz.de/10003581535