This paper outlines recent themes in the literature on foreign direct investment with particular reference to the links between foreign investment and trade. A discussion of the research into the recent surge of foreign direct investment is also presented. The paper emphasises the need for appropriate data to test recent theoretical developments with special attention paid to the aggregation of the data in order to distinguish between vertical and horizontal foreign direct investment and, at the product level, to distinguish between trade in final and intermediate goods. Moreover, the country coverage of empirical studies needs to be extended, in particular to include FDI from European Union countries.
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Paper provided by University of Exeter, School of Business and Economics in its series Discussion Papers with number
00/05.
Length: 48 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:exetec:00/05
Contact details of provider: Postal: School of Business and Economics University of Exeter Streatham Court Rennes Drive Exeter EX4 4PU Phone: (01392) 263218 Fax: (01392) 263242 Web page: http://www.exeter.ac.uk/sobe/ More information through EDIRC
Find related papers by JEL classification: F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business F10 - International Economics - - Trade - - - General
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