The Relationship Between Trade and Foreign Investment: Empirical Results for Taiwan and South Korea
AbstractThis paper presents empirical evidence for Taiwan and Korea bearing on whether outward foreign direct investment (FDI) and international trade of these nations are substitutes or complements, i.e., whether a greater stock of FDI held by a nation is associated with decreases or increases of its exports and imports. This is an issue that has long concerned policymakers in the large industrial nations, who have worried about possible negative effects of outward FDI upon the nation's balance of payments and employment of its work force. Thus, a number of empirical studies have been published regarding this issue for these countries, but not for developing or newly industrializing countries.
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Bibliographic InfoPaper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP98-7.
Date of creation: 1998
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- Pradhan, Jaya Prakash, 2007. "How Do Indian Multinationals Affect Exports from Home Country?," MPRA Paper 19022, University Library of Munich, Germany.
- Leandro Rothmuller, 2003. "Does FDI Matter for Trade in Brazil? An Application of the Gravity Model," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] c71, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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