We develop a tractable growth model to study the dynamic macroeconomic effects of multinational production (MP) across countries. In this model, MP is the vehicle of international idea diffusion: when firms produce in a foreign country, they contribute to the local stock of knowledge. We...

No one in the World and in particular the Economist's community could have gathered an understanding about the manner in which this Pandemic have erupted or shaken the economies. Developing countries particularly South Asian Economies, and within them, the Lower middle Income (LMI) countries...

The empirical debate on the role of international tourism on local economic growth is inconclusive and is characterized by two main opposing views: the Tourism-led economic growth hypothesis and the Economy-driven tourism growth hypothesis. The objective of the study was to establish the role of...

The paper studies Egypt's financial structure and its relation to total factor productivity (TFP) during the 1974–2002 period. It first highlights Egypt's economic performance; and then focuses on the main features of its financial sector: the banking system and the securities market. The effect...

Over the last decade, Spain has ceased being a net receiver of Foreign Direct Investment (FDI) and has become a net provider. Although more dynamic outflows partly explain this change, the decline in FDI inflows also played its part. Given the benefits associated to FDI, it is worth inquiring...

Fearing opportunistic takeovers during the economic upheaval caused by the Covid-19 pandemic, India put forth FDI restrictions resulting in the suspension of automatic route FDI from its border-sharing neighbours. Applying difference-in-difference methodology to bilateral greenfield project...

U.S. foreign trade has grown much more rapidly than GDP in recent decades. But there is no consensus as to why. More than half of U.S. foreign trade consists of arms-length and intra-firm trade activity by multinational corporations (MNCs). Thus, in order to better understand the growth of...

This paper develops two Sraffian supermultiplier models of two different kinds of economies that are dependent upon foreign direct investment (FDI): the 'export platform FDI-led' growth model and the 'tax haven FDI-led' growth model. The former is driven by the growth of the exports of...