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Export Performance and the Role of Foreign Direct Investment Author info | Abstract | Publisher info | Download info | Related research | Statistics Pain, Nigel
Wakelin, Katharine
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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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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:62-88Contact details of provider:
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