David L. Carr

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NBER Working Papers and Publications

February 2004Competition for Multinational Investment in Developing Countries: Human Capital, Infrastructure, and Market Size
with James R. Markusen, Keith Maskus
in Challenges to Globalization: Analyzing the Economics, Robert E. Baldwin and L. Alan Winters, editors
October 1998Estimating the Knowledge-Capital Model of the Multinational Enterprise
with James R. Markusen, Keith E. Maskus: w6773
What we term the firm includes three principal assumptions. First, services of knowledge-based and knowledge-generating activities, such as R&D, can be geographically separated from production and supplied to production facilities at low cost. Second, these knowledge-intensive activities are skilled-labor intensive relative to production. These characteristics give rise to vertical multinationals, which fragment production and locate activities according to factor prices and market size. Third, knowledge-based services have a (partial) joint-input characteristic that they can be supplied to additional production facilities at low cost. This characteristic gives rise to horizontal multinationals, which produce the same goods or services in multiple locations. In this paper, we note ho...

Published: Carr, David L., James R. Markusen and Keith E. Maskus. "Estimating The Knowledge-Capital Model Of The Multinational Enterprise," American Economic Review, 2001, v91(3,Jun), 693-708. citation courtesy of

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