Transaction And Transfer Efficiencies And The Size Of Fdi
AbstractThis paper develops a general equilibrium model with endogenous international economic structure and international division of labor to identify the forces that determine the size of foreign direct investment (FDI). It shows that the volume of FDI is affected positively by host country's transaction efficiency for final goods and ordinary labor, source country's transaction efficiency for managerial and technical professionals, as well as international transfer efficiency for cross-border movement of managerial and technical professionals; and negatively by difficulty in the production of intermediate goods and international transaction efficiency for traded goods. While consistent with some established hypotheses, the findings have cleared up some misunderstandings in the literature on FDI. It has methodological and theoretical contributions and its findings have rich policy implications in the era of globalization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal Division of Labor & Transaction Costs.
Volume (Year): 02 (2007)
Issue (Month): 02 ()
Contact details of provider:
Web page: http://www.worldscinet.com/dltc/dltc.shtml
Find related papers by JEL classification:
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- D - Microeconomics
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- F - International Economics
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- L - Industrial Organization
- O - Economic Development, Technological Change, and Growth
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If references are entirely missing, you can add them using this form.