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 Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon. in its series Working Papers with number 2006/03.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: Department of Economics, School of Economics and Management (ISEG), Technical University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila.iseg.utl.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, Production Analysis, and Firm Location - - - General
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- J. Peter Neary, 2001.
"Foreign Direct Investment and the Single Market,"
Development Working Papers
160, Centro Studi Luca d\'Agliano, University of Milano.
- repec:ebl:ecbull:v:6:y:2004:i:2:p:1-8 is not listed on IDEAS
- Helpman, Elhanan, 1984.
"A Simple Theory of International Trade with Multinational Corporations,"
3445092, Harvard University Department of Economics.
- 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.
- José Pedro Pontes, 2004.
"A theory of the relationship between foreign direct investment and trade,"
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.
- José Pedro Pontes, 2003. "A Theory of the Relationship Between Foreign Direct Investment and Trade," Working Papers 2003/11, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
- 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.
- Horstmann, Ignatius J. & Markusen, James R., 1992. "Endogenous market structures in international trade (natura facit saltum)," Journal of International Economics, Elsevier, vol. 32(1-2), pages 109-129, February.
- Pain, Nigel & Wakelin, Katharine, 1998. "Export Performance and the Role of Foreign Direct Investment," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(0), pages 62-88, Supplemen.
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