We present a theory of spatial development. Manufacturing and services firms located in a continuous geographic area choose each period how much to innovate. Firms trade subject to transport costs and technology diffuses spatially. We apply the model to study the evolution of the US economy in the last half-century and find that it can generate the reduction in the manufacturing employment shar...

What prevents sub-Saharan Africa from escaping poverty through the development of significant manufacturing industries? The first category of constraints are those external to firms, about which we have economic theories: scarcity of physical capital, taxes, poor infrastructure, lack of human capital, corruption, trade costs. A second category are those internal to firms, about which we know li...

It is the conventional wisdom that productivity spillovers from home based to foreign owned firms occur only in the economies of developed countries. This paper argues that there are exceptions to the conventional wisdom. Given the importance of indigenous knowledge in productivity enhancement, spillovers could occur from domestically owned to foreign owned firms in developing countries. Given ...

Manufacturing innovations are technologies and activities that improve and change the level of capacity, performance and quality in manufacturing permanently or over time. This policy brief explores the role of manufacturing innovations in different Nordic contexts, their link with production relocation decisions and performance implications. Manufacturing innovations are analyzed in terms of f...

The aim of this study is to investigate the effects of capital structure decisions on firms’ profitability in manufacturing sector in Turkey. The data used in this research corresponds to the financial statements of manufacturing companies collected between 2005 and 2011. Regression analysis was employed by using financial ratios obtained from financial statements of firms within the scope of a...

In this paper we consider three questions. Why do only some firms enter export markets? What are the benefits to the firm from export market entry? Why do some of these firms exit the market at a future date? Using data on UK manufacturing firms from 1988 to 2002 we find evidence that information spillovers between firms can raise the probability of entry and for a matched sample of firms there...

This paper presents new microeconomic evidence on the link between financial sector development, financial globalization and productivity. Using data of Mexican manufacturing firms operating in 1991, 1998 and 2000 it is found that in general, larger firms benefit from FDI in their same region of activity. However, domestic firms only enjoy productivity increases from FDI if they are relatively ...

Results: The analysis finds that cash flow sensitivity is a valid measure of financial constraints in the Indian manufacturing sector. Results according to splitting criteria found that investment decisions of standalone firms are more sensitive to cash flow than group affiliated firms. Further, splitting the firms according to market capitalization and tangible net worth reveals a higher degre...