Outward Foreign Direct Investment and Intermediate Goods Exports: Evidence from the USA
AbstractThis study examines the relationship between outward FDI stocks and final and intermediate goods exports in the US economy over the period from 1989 to 2003. Using finely disaggregated trade data, the panel data estimation indicates that the outward FDI stock and intermediate goods exports are complementary activities, verifying the hypothesis that fragmentation plays an important role in explaining intra-firm trade between different plants within the same multinational companies. In contrast, the results find a weak evidence of substitution effects between final goods exports and outward FDI stocks, providing partial support for the horizontal type FDI models.
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Bibliographic InfoArticle provided by CEPII research center in its journal Economie Internationale.
Volume (Year): (2007)
Issue (Month): 112 ()
Foreign direct investment; intermediate goods exports; final goods exports; panel econometrics;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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- Raphaël Chiappini, 2011. "FDI and trade: A Granger causality analysis in a heterogeneous panel," Economics Bulletin, AccessEcon, vol. 31(4), pages 2975-2985.
- 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.
- Raphaël Chiappini, 2013. "Do Overseas Investments Create or Replace Trade? New insights from a Macro-Sectoral Study on Japan," GREDEG Working Papers 2013-24, Groupe de REcherche en Droit, Économie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
- Raphaël Chiappini, 2013. "Do Overseas investments create or replace trade? New insights from a macro-sectoral study on Japan," Working Papers hal-00854109, HAL.
- 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.
- Raphaël Chiappini, 2011. "FDI and trade: A Granger causality analysis in a heterogeneous panel," Post-Print halshs-00853441, HAL.
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