We analyze a two-country model of Foreign Direct Investment (FDI). Two firms, each of which is originally situated in only one of the two countries, first decide whether to build a plant in the foreign country. Then, they decide whether to relocate R&D activities. Finally, they engage in product-market competition. Our main points are: first, FDI liberalization causes a relocation of R&D activi...

We develop a tractable two-country overlapping-generations model with domestic financial frictions and show that cross-country differences in financial development explain three recent empirical patterns of international capital flows. In our model, domestic financial frictions create two distinct distortions on the interest rates and production efficiency in the less financially developed coun...

We construct a two-country DSGE model with multiple stages of processing and localcurrency staggered price-setting to study cross-country quantity correlations driven by monetary shocks. The model embodies a mechanism that propagates a monetary surprise in the home country to lower the foreign price level while restraining the home price level from rising too quickly; and, it does so through re...

of numerous articles and books on foreign investment, international trade, and economic growth and development. Summary Outward investment is a way of maximizing the rents on the accumulated knowledge and skill of a country´s firms, or preserving them as long as possible when the country itself has lost its comparative advantage in their industries, and the industries, or parts of them must rel...

This paper fist examines three set of bivariate cointegrations between any two of current accounts, stock markets, and currency exchange markets in ten Asian countries. Furthermore, we examined the effect of country characters on this bivariate cointegration. Our findings suggest that for three sets of cointegration test, each sample country at least exists one cointegration. India consistently...

This paper examines whether country mutual funds respond differently to the up– and down-side conditions in its underlying risk factors, namely, return on the US market, the foreign benchmark and the foreign exchange market. Our sample includes 15 CEFs and 19 ETFs that are traded in the US financial markets and designed to mimic performances of certain foreign country benchmarks. Using a 3–fact...

1831 As a factor influencing productivity, a country's own research and development to generate new technology is more important than that of the average foreign country. It is generally difficult to separate the effect of importing intermediate goods with embodied technology from the effect of other channels of international technology transmission. According to this study, international trade...

BACKGROUND Between 2000 and 2010, Ireland became increasingly dependent on foreign-trained doctors to staff its health system. An inability to train and retain sufficient doctors to meet demand is the primary reason for the dependence on foreign-trained doctors. By 2008 the proportion of foreign-trained doctors was the second highest in the OECD. This increased dependence on international medic...

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...

extended abstract 1. introduction geopolitical genome is the potential of a country. as the genomics is the study of hundreds or perhaps thousands of simultaneous genetic reactions for identifying the main causes of disease and understanding the mechanism of an organism, the activation and extinguishing of the geopolitical genomes are those adopted policies based on the geographical and human p...