Smoking Persistence Across Countries: An Analysis Using Semi-Parametric Dynamic Panel Data Models with Selectivity We study smoking persistence in ten countries using data from the European Community Household Panel. Such persistence may be due to true state dependence but may also reflect individual unobserved heterogeneity. We distinguish between the two by using semiparametric dynamic panel ...

This paper examines the effect of the presence of multinational companies on plant survival in the host country. We postulate that multinational companies can impact positively on plant survival through technology spillovers. We study the nature of the effect of multinationals using a Cox proportional hazard model which we estimate using plant level data for Irish manufacturing industries. Our ...

In this paper, I explore the effect of fragmentation of production processes on social welfare in the imperfectly competitive market. In particular, I examine the welfare properties of fragmentation from the viewpoint of industrialized countries. Firms located at a country decide whether they produce at home or move their production overseas. I show that there exists Nash equilibrium in which a...

This paper studies the entry decision of a multinational enterprise into a foreign market. Two alternative entry modes for a foreign direct investment are considered: Greenfield investment versus acquisition. In contrast to existing approaches, the acquisition price and the profits under both entry modes are endogenously determined. Interestingly, we find that the optimal entry mode decision is...

When multinational firms expand their operations in tax havens, do they divert activity from non-havens? Much of the debate on tax competition presumes that the answer to this question is yes. This paper offers a model for examining the relationship between activity in havens and non-havens, and discusses the implications of recent evidence in light of that model. Properly interpreted, the evid...

This paper analyzes the effects of a potential spillover on technology transfer of a multinational enterprise and on the host country policy. In particular, we examine how both parties’ incentives can be controlled through the ownership structure in an international joint venture. In contrast to existing arguments we show that spillovers must not always have negative effects on technology trans...

Many developing countries are liberalizing their economies to allow higher equity participation by the foreign firms. We argue that the possibility of joint venture can reduce the number of technology transfers. Hence, joint venture can reduce the welfare of a host-country by creating higher market-concentration. However, higher profit generation under joint venture encourages the foreign firm ...

This paper extends the literature on productivity spillovers from inward FDI. We use comparable industry level data for 17 OECD countries and investigate the importance of horizontal and vertical spillovers, and differences between CEEC and other OECD countries. Results show that there is evidence for spillovers through vertical backward linkages between multinationals and domestic firms for al...

The paper considers maximum likelihood estimation of dynamic panel structural equation models with latent variables and fixed effects (DPSEM). This generalises the structural equation methods where latent variables are measured by multiple observable indicators and where structural and measurement models are jointly estimated to dynamic panel models with fixed effects. Analytical expressions fo...

This paper further tests Romer’s (1993) extension of Kydland and Prescott’s (1977) predictions for dynamic-inconsistency problems in open economies. In a panel data set of developed and developing countries from 1973 to 1998, I find that openness does not play a role in restricting inflation in the short-run. On the other hand, a fixed exchange-rate regime plays a significant role. The results ...