Multinational corporations (MNC) search increasingly for lead market knowledge andtechnological expertise around the globe. We investigate whether their subsidiaries gainaccess to these valuable sources of host country knowledge to the same degree as domesticrivals. We develop a theoretical...

After the German reunification, interregional subsidies accounted for approximatelyfour percent of gross fixed capital investment in the new federal states. We show thatbetween 1992 and 2005 infrastructure and (small) business aid had a negative netimpact on regional economic growth. This...

In this paper an index of financial competitiveness is calculated that corresponds to themarket-to-book ratio of inward FDI stocks. For a panel of five advanced economies from1980 to 2006 it is shown that price competitiveness, stable inflation rates and registeredpatents have a positive impact...

This paper investigates the role of corporate taxation with respect to a multinational'sinvestment decision, in which the multinational can pursue either a direct or an indirectinvestment strategy. The latter involves at least three corporate entities and opens upenhanced opportunities for...

This paper investigates how multinational firms choose the capital structure of theirforeign affiliates in response to political risk. We focus on two choice variables, theleverage and the ownership structure of the foreign affiliate, and we distinguish differenttypes of political risk, such as...