Linkages amongst Foreign Direct Investment, Trade and Trade Policy: An Economic Analysis with Applications to the Food Sector
AbstractOur models show that, in OECD countries, tariffs and domestic support, which raise domestic market input prices, can have an effect on how FDI is distributed geographically. FDI may be used to jump tariffs. Investors in a home country may invest in a host country to exploit the preferential tariffs, as from an RTA, which the host has with a third country. Domestic support to agriculture, an input sector into the food sector, can encourage outward investment and discourage inward investment. FDI and trade appear to complement one another. Therefore, policies that open trade may increase FDI and vice versa.
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 InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21064.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lionel Fontagné, 1999. "Foreign Direct Investment and International Trade: Complements or Substitutes?," OECD Science, Technology and Industry Working Papers 1999/3, OECD Publishing.
- Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
- Barrell, Ray & Pain, Nigel, 1996. "An Econometric Analysis of U.S. Foreign Direct Investment," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 200-207, May.
- Chakrabarti, Avik, 2003. "A theory of the spatial distribution of foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 12(2), pages 149-169.
- Bolling, H. Christine & Neff, Steven & Handy, Charles R., 1998. "U.S. Foreign Direct Investment in the Western Hemisphere Processed Food Industry," Agricultural Economics Reports 34017, United States Department of Agriculture, Economic Research Service.
- Munisamy Gopinath & Daniel Pick & Utpal Vasavada, 1999.
"The Economics of Foreign Direct Investment and Trade with an Application to the U.S. Food Processing Industry,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 81(2), pages 442-452.
- Gopinath, Munisamy & Pick, Daniel H. & Vasavada, Utpal, 1998. "The Economics Of Foreign Direct Investment And Trade With An Application To The U.S. Food Processing Industry," Working Papers 51205, International Agricultural Trade Research Consortium.
- Marchant, Mary A. & Saghaian, Sayed H. & Vickner, Steven S., 1999. "Trade And Foreign Direct Investment Management Strategies For U.S. Processed Food Firms In China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 2(02).
- Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
- West, D. & Vaughan, O., 1995. "Multinational Firms, Investment and Trade in Canada's Food and Beverage Industry: Policy Implications," Papers 7/95, Gouvernement du Canada - Agriculture Canada.
- Marilyne Huchet-Bourdon & Anna Lipchitz & Audrey Rousson, 2009.
"Aid for Trade in Developing Countries: Complex Linkages for Real Effectiveness,"
African Development Review,
African Development Bank, vol. 21(2), pages 243-290.
- Maryline Huchet-Bourdon & Anna Lipchitz & Audrey Rousson, 2008. "Aid for trade in developing countries: complex linkages for real effectiveness," Post-Print hal-00729834, HAL.
- Wilson, Norbert L.W., 2007. "What a Difference a Day Makes: An Estimate of Potential Gains from Trade Facilitation," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9958, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.