This paper develops a quality ladder model in which the technology gap between the North and the South is endogenously determined. Foreign direct investments (FDI) occur cyclically: New FDI arrives if and only if the technology gap reaches some threshold. A stronger intellectual property rights (IPR) in the South discourages imitation and reduces the FDI cycle length. A smaller market size and ...

Following the notion of skill-biased FDI fl ows from developed to less developed regions, high-skilled workers are likely to benefi t from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional confl ict that might turn into heterogeneous attitudes toward FDI infl ows in line with skill. In this paper ...

In an international oligopoly model, this paper investigates interaction between trade liberalization in goods and liberalization in service FDI. Since some services are market-specific and have non-tradable nature, a foreign firm has a higher cost in service provisions compared to its domestic competitor and it can overcome the disadvantage by either outsourcing services to the domestic compet...

Foreign investors access local knowledge by co-locating with other foreign direct investment (FDI) firms. However, different aspects of local knowledge can be obtained from different local businesses. Thus, some foreign investors co-locate with FDI firms from the same country of origin, while others co-locate with foreign industry peers. We argue that, relative to industry FDI agglomeration, co...

The previous literature provides a highly ambiguous picture on the impact of trade and investment agreements on FDI. Most empirical studies ignore the actual content of BITs and RTAs, treating them as "black boxes", despite the diversity of investment provisions constituting the essence of these agreements. We overcome this serious limitation by analyzing the impact of modalities on the admissi...

Head, Keith, and Ries, John—Judging Japan’s FDI: The verdict from a dartboard model We evaluate Japan’s inward and outward FDI performance using theoretical benchmarks based on the premise that management teams headquartered around the world bid for the production facilities located in each country. Our model incorporates the assumption that bids are inversely proportionate to distance. It accu...

This paper examines the effect of foreign direct investment (FDI) on growth by focusing on the complementarities between FDI inflows and financial markets. In our earlier work, we found that FDI is beneficial for growth only if the host country has well-developed financial institutions. In this paper, we investigate whether this effect operates through factor accumulation and/or improvements in...

Previous studies suggest that in amyotrophic lateral sclerosis (ALS) the abductor pollicis brevis (APB) and first dorsal interosseous (FDI) are more severely involved than abductor digiti minimi (ADM). To elucidate the pattern, frequency, extent, and specificity of such dissociated muscle atrophy in ALS, compound muscle action potentials recorded from APB, FDI, and ADM were analyzed in 77 ALS p...

OBJECTIVE To derive normative values for ulnar nerve conduction study of the active recording electrode on the first dorsal interosseous muscle (FDI) and the reference electrode on the proximal phalanx of the thumb. METHOD Ulnar nerve motor conduction study with FDI and abductor digiti minimi muscle (ADM) recording was performed in 214 hands of 107 healthy subjects. Ulnar NCS was performed wi...

The name “Foreign Direct Investment” usually brings to mind a significant contribution of FDI to domestic investment. However, there has been a lot of skepticism concerning the contribution of inward FDI to domestic investment. As noted by Froot (1993), FDI (the purchase by a domestic resident of a controlling stake in a foreign company) actually requires neither capital flows nor investment in...