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Export Performance and the Role of Foreign Direct Investment

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Author Info
Pain, Nigel
Wakelin, Katharine

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Abstract

This paper explores the relationship between the location of production and the trade performance of eleven OECD countries since 1971. The paper augments a standard export demand model, which includes relative prices, market size, and measures of relative innovation, with indicators of both inward and outward investment levels. Common long-run parameters are accepted for market size, relative prices, and relative patenting, but not for the direct investment effects. The sign and magnitude of the direct investment effects vary by country. Outward investment has a generally negative impact on trade shares, while inward investment has a generally positive one. Copyright 1998 by Blackwell Publishers Ltd and The Victoria University of Manchester

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Publisher Info
Article provided by Blackwell Publishing in its journal The Manchester School of Economic & Social Studies.

Volume (Year): 66 (1998)
Issue (Month): 0 (Supplement)
Pages: 62-88
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Handle: RePEc:bla:manch2:v:66:y:1998:i:0:p:62-88

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  1. Ping Zheng & Pamela Siler & Gianluigi Giorgioni, 2004. "FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach," Journal of Chinese Economic and Business Studies, Taylor and Francis Journals, vol. 2(1), pages 55-71, January. [Downloadable!] (restricted)
  2. Isabel Faeth, 2005. "Determinants of FDI in Australia: Which Theory Can Explain it Best?," Department of Economics - Working Papers Series 946, The University of Melbourne. [Downloadable!]
  3. Fragkiskos Filippaios & Constantina Kottaridi, 2008. "Complements or Substitutes? New Theoretical Considerations and Empirical Evidence on the Imports and FDI Relationship," Working Papers 0026, University of Peloponnese, Department of Economics. [Downloadable!]
  4. Le Thanh THUY, 2007. "Does Foreign Direct Investment Have an Impact on the Growth in Labor Productivity of Vietnamese Domestic Firms?," Discussion papers 07021, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  5. Desirée Van Welsum, 2004. "In Search of ‘Offshoring’: Evidence from U.S. Imports of Services," Birkbeck Working Papers in Economics and Finance 0402, Birkbeck, Department of Economics, Mathematics & Statistics. [Downloadable!]
  6. Mitze, Timo & Alecke, Björn & Untiedt, Gerhard, 2008. "Trade, FDI and Cross-Variable Linkages: A German (Macro-)Regional Perspective," MPRA Paper 12245, University Library of Munich, Germany. [Downloadable!]
  7. Katerina Smidkova & Ray Barrell & Dawn Holland, 2002. "Estimates of Fundamental Real Exchange Rates for the Five EU Pre-Accession Countries," Working Papers 2002/03, Czech National Bank, Research Department. [Downloadable!]
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  8. José Pedro Pontes, 2004. "A theory of the relationship between foreign direct investment and trade," ERSA conference papers ersa04p47, European Regional Science Association. [Downloadable!]
    Other versions:
  9. Gu, Weishi & Awokuse, Titus O. & Yuan, Yan, 2008. "The Contribution of Foreign Direct Investment to China's Export Performance: Evidence from Disaggregated Sectors," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6453, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Katerina Smidkova & Ales Bulir, 2004. "Would Fast Sailing Towards the Euro Be Smooth?: What Fundamental Real Exchange Rates Tell Us About Acceding Economies," Macroeconomics 0408002, EconWPA. [Downloadable!]
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  11. Jungnickel, Rolf & Keller, Dietmar, 2003. "German FDI and Integration of Production in the EU," Discussion Paper Series 26376, Hamburg Institute of International Economics. [Downloadable!]
  12. Kateřina Šmídková & Aleš Bulíř, 2005. "Would Fast Sailing Towards The Euro Be Smooth? What Fundamental Real Exchange Rates Tell Us," Prague Economic Papers, University of Economics, Prague, vol. 2005(4), pages 291-316. [Downloadable!] (restricted)
  13. Johnson, Andreas, 2006. "FDI and Exports: the case of the High Performing East Asian Economies," Working Paper Series in Economics and Institutions of Innovation 57, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  14. Ray Barrell & Dawn Holland & Nigel Pain & Mihaly Andras Kovacs & Zoltan Jakab & Katerina Smidkova & Urmas Sepp & Uros Cufer, 2004. "An Econometric Macro-model of Transition: Policy Choices in the Pre-Accession Period," Macroeconomics 0403004, EconWPA. [Downloadable!]
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  15. Jose Pedro Pontes, 2006. "FDI and trade: complements and substitutes," Working Papers 2006/03, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  16. Sarianna M. Lundan, 2007. "The Home Country Effects of Internationalisation," Discussion Papers 1100, The Research Institute of the Finnish Economy. [Downloadable!]
  17. Maria Rosaria Alfano, 2005. "Tax Competition in EU implies EMTR different: some effects on FDI and Economic Growth Rate," Public Economics 0510015, EconWPA. [Downloadable!]
  18. Timo Mitze & Björn Alecke & Gerhard Untiedt, 2009. "Trade-FDI Linkages in a System of Gravity Equations for German Regional Data," Ruhr Economic Papers 0084, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  19. Petr Kral, 2004. "Identification and Measurement of Relationships Concerning Inflow of FDI: The Case of the Czech Republic," Working Papers 2004/05, Czech National Bank, Research Department. [Downloadable!]
  20. Cuyvers L. & Plasmans J. & Soeng R. & Van den Bulcke D., 2008. "Determinants of Foreign Direct Investment in Cambodia: Country-Specific Factor Differentials," Working Papers 2008003, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
  21. Mariam Camarero & Cecilio Tamarit, 2003. "Estimating exports and imports demand for Manufactured goods: The role of FDI," European Economy Group Working Papers 22, European Economy Group. [Downloadable!]
  22. Amiti, Mary & Wakelin, Katharine, 2002. "Investment Liberalization and International Trade," CEPR Discussion Papers 3492, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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