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Sebastian Tocar

Journal of Social Economics, Vol. 36, pp. 105-123. 20. Lee, S.-H., Shenkar, O., & Li, J. (2008), Cultural distance, investment flow, and control in cross-border cooperation. Strategic Management Journal, Vol. 29, pp. 1117–1125. 21. Mateev, M. (2008), Determinants of Foreign Direct Investment in Central and Southeastern Europe: New Empirical Tests. 8th Global Conference on Business & Economics. Florence, Italy. 22. Noorbakhsh, F., Paloni, A., & Youssef, A. (2001), Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence. World

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Andrzej Cieślik, Jan Jakub Michałek and Iryna Gauger

frameworks of the new trade theory through which economists study the relationship between productivity and international trade flows. In these models, the effects of trade liberalization vary across producers and depend on their productivity levels in particular. Aggregate productivity gains come from improved selection and increased competition that trade brings. A large number of empirical studies confirmed many of the predicted patterns predicted by the new trade theories that accounted for firm heterogeneity (e.g., Pavcnik, 2002 ; Bernard et al ., 2006 ; and