Wholesale affiliates account for a significant share of the foreign earnings of multinational firms. Yet little is known about them since empirical work on multinationals typically focuses on manufacturing affiliates. Instead, it has been presupposed that wholesale affiliates are a form of exporting by the parent company, and not a form of foreign direct investment. This paper presents evidence...

This paper aims at assessing the nature of foreign direct investment (FDI) in transition countries. We provide an empirical application of the knowledge-capital model of multinationals (MNEs) to an original panel of a¢ liates of MNEs in seven transition countries. We succeed in proving that the strategies of MNEs are heterogeneous by looking at FDI ‡ows by sectors of activity and by source coun...

This note presents a simple, partial equilibrium model of the supply of offshore tax havens, when multinationals are capable of sheltering some of their worldwide income. It provides a few contrasting predictions to those in “Tax Competition with Parasitic Tax Havens” by Slemrod and Wilson. Slemrod and Wilson model tax sheltering as a production process which uses up scarce resources in the tax...

Article history: Received 9 December 2013 Received in revised form 25 January 2014 Accepted 26 January 2014 Available online 15 February 2014 In the past two decades, emerging market multinationals (EMMs) have been trying to catch up with developed market multinationals (DMMs) and are increasingly making their presence felt on the global competitive landscape. It is essential for DMMs to monito...

Extractive industries are spread across mining of metal and minerals, oil gas, among others. Multinationals in these sectors confronted with different challenges ranging from corruption, political risk, economic uncertainty, sunk costs, the long-gestation periods to execute projects. As a result, tax payment behaviour subsidiaries extractive sector could be dependent not only on factors, but al...

0 7 4 0 7 4 5 9 / 0 1 / $ 1 0 . 0 0 © 2 0 0 1 I E E E Software engineers have recognized the profound influence of business globalization for some time, generating alarmist reactions in some quarters and moving others to try to capture and emulate models that have met with success. More recently, attention has turned toward trying to understand the factors that enable multinationals and virtual...

This paper argues that multinational companies can impact positively on the survival of plants in the host country through technology spillovers. We study this effect empirically by estimating a Cox proportional hazard model on plant level data for Irish manufacturing. Our results show that, ceteris paribus, the presence of multinationals has a life enhancing effect on indigenous plants in high...

Under pressure from pharmaceutical multinationals, among others, the government of India removed the phase-lag rule and now allows foreign pharmaceutical companies to conduct drug trials in India simultaneously with same-phase trials in other countries. The old rule was designed to protect Indians from being used as guinea pigs in the testing of unproved drugs of foreign origin; trials of domes...

This paper investigates whether knowledge accumulating activities, such as exporting, R&D, or worker training, can enhance plants’ productivity. To this end we use plant level panel data for Irish manufacturing. Our results importantly indicate that productivity enhancing effects of these factors are found only for domestic firms, but not for foreign multinationals located in Ireland. We postul...