We study the distributional effects of globalization within a model of heterogeneous agents where both managerial talent and knowledge of the local economic environment are required in order to become a successful entrepreneur. Agents willing to set up a firm abroad incur a learning cost that...

The novel coronavirus demands untold amounts of public spending even as it has destroyed untold amounts of economic value, yet the fortunes of some taxpayers will multiply in the process. The authors consider proposals to rebuild revenue coffers using excess profits taxes and argue that, owing...

Uncertainty incentivizes investors to wait-and-see and to hold back their investments. This paper investigates whether more liquid types of foreign direct investment are more affected by policy uncertainty than less liquid ones. Utilizing election data and the newly developed World Uncertainty...

Today's most pressing constitutional question is posed by a global economic system whose expansive tendencies seem no longer controllable. The current financial/debt crisis has triggered diverse reactions in the political arena ranging from the reformist ordo‐liberal approach followed by...

We test for pollution haven effects in outward foreign direct investment (FDI) for different sectors using a comprehensive and exhaustive dataset for outward FDI from the Netherlands, one of the most environmentally stringent countries and a major source of global FDI. Our evidence suggests that...

While FDI is generally assumed to represent long-term investments within the “real” economy, approximately 30-50% of global FDI is accounted for by networks of offshore shell companies created by corporations and wealthy individuals for tax and other purposes. To date, there has been limited...

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...

Member countries of the Organisation of Petroleum Exporting Countries (OPEC) are always in the news regarding the prices and supply of crude oil to the international market. One of the economic reasons for this is liquidity and the desire to accumulate international reserves by the respective...

Intra-firm trade, from parents to affiliates, has been combined with standard models of multinational production (MP) to deliver gravity-style predictions for foreign affiliates' sales. Nonetheless, the evidence shows that intra-firm trade is concentrated among a small set of large multinational...