FDI and Heterogeneous Firms: Evidence from BRIC Countries

Time Zones and FDI with Heterogeneous Firms

Based on Helpman et al. (2004) we propose a simple two-country (Home and Foreign) model with heterogeneous firms to capture the role of FDI via utilizing time zone differences. Two countries are located in different time zones and there is no overlap in daily working hours. It will be shown that productivities of the firms undertaking FDI are higher than the productivities of non-FDI f i r m s ...

Subsidies for FDI: Implications from a Model with Heterogeneous Firms∗

This paper analyzes the welfare effects of subsidies to attract multinational corporations when firms are heterogeneous in their productivity levels. I show that the use of a small subsidy raises welfare in the FDI host country, with the consumption gains from attracting more multinationals exceeding the direct cost of funding the subsidy program through a tax on labor income. This welfare gain...

Technological Spillovers From FDI : Evidence from Tunisian Manufacturing Firms

Foreign Direct Investment (FDI) in developing countries is expected to foster technology transfer from foreign-owned to local firms. Using detailed panel data from Tunisian manufacturing firms, we show that technological spillovers generated by FDI, as a form of technology transfer, help firms move near the best practice frontier (production frontier) measured by the Schmidt and Sickles method....

Home Country Effect of FDI Outflows from the BRIC Countries: Study of Domestic Investment

The recent phenomenon of rising outward foreign direct investment (OFDI) flows has raised serious policy concerns about its effects on the domestic investment and capital formation in the source countries. Does OFDI stimulate domestic investment or does it crowd it out? The concern arises because OFDI activities could shift not only some of the production activities from home to foreign destina...

Panel Causality Relationship Among FDI And Trade (Evidence From 16 Advanced Europe Countries)