FDI and trade: complements and substitutes
AbstractThis paper presents a non-monotonic relationship between foreign direct investment and trade based on the idea that, although FDI eliminates trade costs on the final good, the investing firm has to bear increased trade costs on an intermediate good.
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Bibliographic InfoPaper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2006/03.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
Foreign Direct Investment; Trade; Firm Location.;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-19 (All new papers)
- NEP-IFN-2006-02-19 (International Finance)
- NEP-INT-2006-02-19 (International Trade)
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.:
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200124, School Of Economics, University College Dublin.
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- Helpman, Elhanan, 1984.
"A Simple Theory of International Trade with Multinational Corporations,"
Journal of Political Economy,
University of Chicago Press, vol. 92(3), pages 451-71, June.
- Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Scholarly Articles 3445092, Harvard University Department of Economics.
- José Pedro Pontes, 2003.
"A Theory of the Relationship Between Foreign Direct Investment and Trade,"
Working Papers Department of Economics
2003/11, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- José Pedro Pontes, 2004. "A theory of the relationship between foreign direct investment and trade," Economics Bulletin, AccessEcon, vol. 6(2), pages 1-8.
- José Pedro Pontes, 2004. "A theory of the relationship between foreign direct investment and trade," ERSA conference papers ersa04p47, European Regional Science Association.
- Bettina Becker & Nigel Pain, 2008.
"What Determines Industrial R&D Expenditure In The Uk?,"
University of Manchester, vol. 76(1), pages 66-87, 01.
- Nigel Pain, 2003. "What Determines Industrial R&D Expenditure in the UK?," NIESR Discussion Papers 131, National Institute of Economic and Social Research.
- repec:ebl:ecbull:v:6:y:2004:i:2:p:1-8 is not listed on IDEAS
- S. Lael Brainard, 1993. "A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration," NBER Working Papers 4269, National Bureau of Economic Research, Inc.
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