We investigate the hypothesis that workers in foreign-owned establishments face greater job insecurity. Using linked employer employee data from Germany, we examine whether foreign-owned establishments are more likely to exit production, and whether workers in foreign-owned establishments face higher separation rates, net of establishment exit. We find that, after controlling for the different ...

This paper applies the panel fixed effects with vector decomposition estimator to three FDI datasets to estimate the impact of time-invariant variables on FDI while including fixed effects. We find that the omission of fixed effects significantly biases several of these variables, especially those proxying for trade costs and culture. After including fixed effects, we find that many time-invari...

This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers and acquisitions, rather than greenfield investment. In this framework, we show that differences in residence based taxes do not necessarily distort international ownership patterns. Moreover, tax competition yields globally efficient levels of source based corporate income taxes...

Though the Multilateral Agreement on Investment (MAI) has failed, the original draft is likely to serve as a basis for future negotiations. This article gives a critical assessment of the draft from an industrial economics point of view. First, I summarize the contents of the agreement which is relevant for market structure and competition. Then I develop the industrial economics approach, whic...

The negative effects of intellectual property protection (IPP) on trade volume have been found in the literature when market power effects dominate market expansion effects. Because both effects will increase profits, IPP will induce entry without ambiguity. However, using product-level entry data, negative effects on market supply are found after controlling for country-specific effects. An ex...

FDI Impact on Firm Performance in Enlarged Europe: Evidence from a Meta-Regression Analysis This paper combines, explains and summarizes recent findings from the empirical literature focusing on the FDI’s effect on firms’ performances by collecting all the relevant firm level quantitative studies to run a regression of regressions focused on Enlarged Europe. The results show that there exists a...

In this paper the authors examine the relationship between local corruption and multinational investment. They construct a model of regulatory capture that highlights the interaction between a corrupt regulator, a local dominant …rm and a multinational …rm. The model suggests that entry by a multinational could have a variety of e¤ects on corruption, both positive and negative. These include: d...

This paper presents a model tha t measures the impact of political risk on portfolio investment when the political risks are multivariate and correlated across countries. The multivariate approach generalizes the single country model but retains most of its characteristics in terms of its ability to price political risk based on the stochastic process of exposure to loss and the expected freque...

The increasing speed of globalisation has created both opportunities and challenges to many transitional economies. This paper analyses the impact of foreign direct investment (FDI) on the productivity of the State-Owned Enterprises (SOEs) and concludes that SOE reform is inevitable. The SOEs’ obligations to provide social welfare should be removed to enable them to compete on an equal footing ...

Studies have found the impact of foreign direct investments (FDI) on productivity growth to be firm-industry-host economy specific. However, the impact of FDI may differ with the existing market conditions in the economy and also with respect to the source of the FDI. The paper examines the impact of FDI on productivity growth of the Indian industry in the period of low market demand conditions...