This paper examines whether and how foreign direct investment (FDI) may lead to cultural convergence across countries. Using gender culture as an example, we study whether FDI may change foreign a¢liates and domestic firms’ biases towards female workers in the host country. To guide our empirical exploration, we build a parsimonious multi-sector task-based model that features heterogeneity in f...

This paper suggests that the use of investment incentives focusing exclusively on foreign firms, although motivated in some cases from a theoretical point of view, is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for financial subsidies to inward FDI – spillovers of foreign technology and skills to local industry – is not an a...

Foreign Direct Investment (FDI) in developing countries is expected to foster technology transfer from foreign-owned to local firms. Using detailed panel data from Tunisian manufacturing firms, we show that technological spillovers generated by FDI, as a form of technology transfer, help firms move near the best practice frontier (production frontier) measured by the Schmidt and Sickles method....

This study examines the financing choices of firms operating in a weak institutional environment. We argue that in relationship-based systems, global financing and strong political connections are alternative means to create firm value. Well-connected firms might be less inclined to access global capital markets because (state-owned) domestic banks provide capital at low cost. Moreover, the exp...

2 ABSTRACT Cross-border venture capital investment has grown dramatically. Drawing upon observations about the liability of foreignness, previous research has shown that foreign venture capitalists (VCs) tend to partner with local VCs in order to offset information asymmetry and the liabilities of foreignness. Much of the literature has suggested that local VCs should help reduce operational un...

researchers in their reviewing of international market literature which practical experiences in iran indicate it demonstrate that to choose a foreign market there are two approaches: expansion and systematic approach. firms that use expansion approach, through the culturally and geographically similar markets starts working in international markets. however, in systematic approach, firms use a...

This draft is very preliminary and incomplete. Please do not quote or circulate without permission. Comments are welcome. Abstract Using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries, this paper finds preliminary evidence that foreign firms enjoy significant regulatory advantages—as perceived by the firms themselves—over domestic firms. ...

This paper studies the introduction of new varieties of goods in the Chinese manufacturing sector during the period 1998-2000. I first develop a monopolistic competition model with multiproduct firms in which firms are heterogeneous in two dimensions: the fixed cost of introducing varieties into the market and the variable cost of production. Using firm-level data for the Chinese manufacturing ...

Foreign Direct Investment, Black Economic Empowerment and Labour Productivity in South Africa The impact of foreign direct investment (FDI) on domestically owned firms in developing countries has been widely debated in the literature. It has been argued that FDI provides access to advanced technologies and other intangible assets which may spill over to the host country and allow domestic firms...

Despite the political sensitivity of foreign capital, existing work on the effect of foreign capital at the firm level is slim. This paper examines the effect of foreign equity ownership and management on firm performance using a panel of Korean firms for the period of 1993-2007 when foreign capital inflows increased dramatically. Empirical results show that foreign equity ownership positively ...