A novel linked employer-employee data set documents that expanding multinational enterprises retain more domestic jobs than competitors without foreign expansions. In contrast to prior research, a propensity score estimator allows enterprise performance to vary with foreign direct investment (FDI) and shows that the foreign expansion itself is the dominant explanatory factor for reduced worker ...

We examine the economic justification for providing investment subsidies to foreign-owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering subsidies to multinationals may be in the national interest if the investment raises the net value of domestic production. Whe...

We compare the survival of new domestic and foreign owned firms. We analyze the determinants of the survival of new firms and investigate whether foreigness accounts for significant differences in the survival of new foreign and new domestic firms. We find survival to be determined by ownership advantages, size and growth strategies, the internal organization of firms, and by industry character...

The relationship between ethnic and faith communities in the United States and domestic forces relating to a converging and diverging social contract on the one hand, and US foreign, security and military policies in national, regional and global contexts on the other hand, constitutes the key focus of this paper and the ongoing research upon which it is based. Theories related to American ethn...

A domestic power faces an enemy and commits terrorist atrocities to increase the likelihood of victory. A foreign patron can grant aid to the power but prefers fewer or no atrocities. The domestic power responds by acquiescing in the creation of uncontrollable paramilitaries that commit even more atrocities. Once the paramilitaries are set up, aid flows and the atrocity level is high. Now suppo...

How does an unexpected domestic monetary expansion a¤ect the foreign economy: Does it induce an increase or a decline in foreign production? And is it ’beggar-thy-neighbour’, or does it raise foreign welfare? Empirical evidence from VARs indicates that monetary policy has positive international transmission e¤ects on both foreign output and aggregate demand. A two-country dynamic general equili...

This paper examines whether policies to promote foreign direct investment (FDI) make economic sense. The discussion focuses on whether existing academic research suggests that the benefits of FDI are sufficient to justify the kind of policy interventions seen in practice. For small open economies, efficient taxation of foreign and domestic capital depends on their relative mobility. If foreign ...

In an interconnected world, economic and political interests inevitably reach beyond national borders. Since policy choices generate external costs, foreign state non-state actors have interest in influencing actions other sovereign countries to their advantage. Foreign influence is a strategic choice aimed at internalizing these externalities takes three principal forms: (i) voluntary agreemen...