This paper analyzes the effects of 3D printing technologies on the volume of trade and on the structure of foreign direct investment (FDI). A standard model with firm-specific heterogeneity generates three main predictions. First, 3D printers are introduced in areas with high economic activity...

Headquarters and their specialized component suppliers have a vital interest in establishing long-term collaborations. When formal contracts are not enforceable, such efficiency-enhancing cooperations can be established via informal agreements, but relational contracts have been largely ignored...

We develop a theoretical model of bilateral investment treaties (BITs) to analyze their effects on firm profits and government welfare with heterogeneous firms. We explicitly model the trade-off between attracting foreign direct investment (FDI) and protecting the government's scope to regulate....

We set up a general equilibrium model, in which offshoring to a low-income country can lead to job polarisation in the high-income country, with the number of jobs paying either very high or very low wages increasing, and jobs in the middle of the wage distribution disappearing. The firm...

Do investments in the Czech Republic lead to employment growth or employment losses in the German firms involved? To address this question, a unique database about German firms with foreign direct investments (FDI) in the Czech Republic and firms without FDI in any country has been established....

The effectiveness of European patent boxes in triggering R\&D and fostering new patentable innovations is the subject of a growing debate. These regimes are considered liable of tax-favouring already successful ideas, without imposing a nexus between the final location of the intellectual...

We revisit the effects of double tax treaties on foreign direct investment. Previous empirical studies provide somewhat counterintuitive results suggesting insignificant or even negative effects of tax treaties. Using a rich firm-level dataset provided by the German Central Bank we analyze the...

This paper scrutinizes the effects of investor-state dispute settlements (ISDS) and national treatment provisions in a two-period model where foreign investment is subject to domestic regulation and a holdup problem. It shows that ISDS can mitigate the holdup problem and increases aggregate...

This paper investigates transfer pricing as tax avoidance before and after reforms of anti-avoidance legislation. The reforms introduced and tightened obligatory documentation requirements for transfer prices to enforce that multinational enterprises (MNEs) set internal transfer prices at an...