Germany has introduced a comprehensive package of staggered business tax breaks to accelerate business investment and give new momentum to economic growth. The key components of the so-called investment booster program are a temporary tax write-off on machinery and other equipment investments to...

Foreign direct investment and the activities of multinational enterprises play an essential role in shaping employment outcomes, particularly in developing and emerging economies. With globalization and the expansion of global value chains, understanding how FDI influences labour markets has...

How would fundamental political change in Iran, leading to a democratic system with a free and rulesbased economic order, affect Germany and the EU economically? In the event of change, sanctions could be scaled back, allowing Iran to rejoin the global economy. This study quantifies the economic...

Russia's full-scale invasion of Ukraine in February 2022 has triggered profound structural changes in the country's economy, reshaping patterns of foreign trade, foreign direct investment and sectoral specialisation. This paper analyses the shifts in Ukraine's trade and investment structures...

This study provides sector-level insights to inform energy strategies consistent with SDG 7 and SDG 13. Drawing on a panel of 43 emerging and developing economies (1998-2020), we estimate a GMM panel vector autoregression (PVAR) linking foreign direct investment, sectoral GDP, energy demand, and...

Whether China can avoid the middle-income trap has been the subject of extensive research. Currently classified as an upper middle-income country, China increasingly exhibits similar characteristics as countries currently experiencing the middle-income trap. However, using evidence from China's...

This study analyzes the empirical link between German bilateral development finance and Foreign Direct Investment (FDI) at the sub-national (ADM2) level. We construct a unique dataset by merging geo-referenced development aid projects - implemented by KfW Development Bank - over more than two...

This paper analyses the role of loan guarantees in supporting the internationalisation of Indian firms through outward foreign direct investment (OFDI) since the mid-2000s. Despite a persistent domestic savings-investment gap and recurrent current account deficits, Indian OFDI has expanded...

Financial markets and foreign investments could play an effective role in determining the environment and income of GCC resource-rich economies. Therefore, the effects of Financial Market Development (FMD) and Foreign Direct Investment (FDI) on Carbon Intensity (CI) from oil, gas, gas flaring,...

Traditional theories of firm boundaries predict trade between vertically related units of the same firm. Using novel data that combine a comprehensive mapping of U.S. multinationals’ production networks with their customs filings, we uncover a strong positive relationship between input-output...

Using administrative longitudinal firm- and plant-level data from Mexico that links manufacturing firms to their customs records and covers the period 2014 - 2023, I examine whether US tariffs targeting China have contributed to a manufacturing revival in the southern part of North America....

This paper quantifies how demand and supply shocks transmit to yields in Colombia's sovereign bond market by estimating investor-level demand elasticities and translating them into equilibrium price effects. Using investor-security microdata and two complementary identification strategies, I...

In Latin America, Mexico (2020), Chile (2022) and Colombia (2022) have all officially committed to a feminist foreign policy (FFP). The introduction of a feminist approach to foreign policy should be seen in the context of a growing awareness of gender issues in international, regional and...

This study analyzes the empirical link between German bilateral development finance and Foreign Direct Investment (FDI) at the sub-national (ADM2) level. We construct a unique dataset by merging geo-referenced development aid projects - implemented by KfW Development Bank - over more than two...

The problem with FDI flows is that zero or negative flows are being ignored or handled differently. This paper modifies the heterogeneous firm model proposed by Helpman et al. (2008) and examines the determinants of the bilateral outward foreign direct investment (FDI) flows. Given the...

We describe a novel mechanism via which multinational enterprises (MNEs) can serve to propagate productivity and credit supply shocks across borders. We augment the costly-state-verification model of Bernanke et al. [1999] with the internal capital market constraint of an MNE to analyze the...

Background: Nearshoring has risen after shocks and policy shifts. We synthesize evidence in a compact loop linking triggers (trade frictions, supply-chain risk, new agreements) to location choices mediated by multidimensional proximity (geographic, institutional, organizational, social,...

This paper provides an integrated analysis of multinational companies' global production and innovation. We establish novel stylized facts using rich data on the network of production affiliates and patent activity of German multinationals. We rationalize these facts with a heterogeneous-firm...

Global firms have a higher share of female employees than domestic non-exporters. To explain this fact, this paper tests whether international trade and FDI are channels through which norms regarding gender (in)equality are transmitted from customers and investors to firms. We employ pooled...

Mit der Neuordnung der internationalen Lieferketten hat Mexiko als Standort für neue Auslandsinvestitionen an Bedeutung gewonnen. Das Land konnte vom Nearshoring profitieren, das heißt von der Verlagerung von Dienstleistungen oder Produktionsprozessen in die Nähe der Konsumentenmärkte. Damit...

Foreign direct investment (FDI) is often seen as a means to boost domestic investment and, hence, capital accumulation. Yet, the empirical support for such a positive investment effect of FDI is inconclusive. A possible reason is that FDI is often directed towards the financial sector, where...

Foreign direct investment (FDI) can potentially contribute to the structural transformation that will create jobs for Africa’s young and underemployed workforce. Yet, surprisingly little is known about the direct and indirect employment effects of greenfield investment, the most common form of...

Foreign direct investment (FDI) has become a driver of growth in both developed and developing countries, as it enables the transfer of know-how and advanced technologies to host economies. This policy note discusses how FDI can effectively support innovation and green growth within the European...

This paper investigates how the presence of foreign direct investment (FDI) contributes to domestic innovation with a focus on green technologies in the European regions between 2013 and 2018. Using a rich dataset combining patent data, firm-level data and FDI proxies, we identify a clear...

This study examines the interplay between trade policy, in particular non-tariff measures (NTMs), and revealed technological comparative advantage (RTA) at the NUTS 2 level as drivers of foreign direct investment (FDI) over time. Combining data from the Orbis database (Bureau Van Dijk), the NTMs...

The evolving macroeconomic landscape, shaped by the global financial crisis and the COVID-19 pandemic, poses significant challenges for economies worldwide. However, Central, Eastern, and Southeastern European (CESEE) countries have demonstrated resilience and rapid recovery during crises,...

This study examines the impact of inward foreign direct investment (FDI) on economic growth in South and Southeast Asia from 2006 to 2022, using a comprehensive panel dataset and multiple econometric techniques. The baseline estimation employs Feasible Generalized Least Squares (FGLS), with...

In this research, the direct and indirect effects of foreign direct investment (FDI) inflows on carbon dioxide (CO2) emissions in India are examined, covering the period from 1980 to 2014. To quantify the indirect outcome of the existence of FDI on CO2 emissions, in this study, the three...

This study investigates how Chinese ownership in European ports affects trade flows between China and Eurozone countries, set against the backdrop of recent global economic disruptions that have emphasized the crucial role of maritime trade and port efficiency. An augmented gravity model was...

This paper analyzes the macroeconomic evolution of the European Union member states that have adopted the Euro, compared to those that continue to use national currencies, with a specific focus on the Central and Eastern European countries during the period 2018-2024. Using a quantitative and...