Immigration, FDI, and International Trade
AbstractThis paper examines the interactions among immigrants, inbound FDI, and imports in the U.S. In testing the patterns of international movements of factors of production, most existing analyses have omitted the role of international trade. On the other hand, research on the relationship between FDI and international trade has neglected the importance of international labor movements. This study uses a vector error correction model to consider all three variables. Using U.S. annual data from 1969 to 2000, I find that labor and FDI move in the same direction and labor movements cause FDI movements. In addition, I also find that inbound FDI and imports are substitutes.
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Bibliographic InfoPaper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2006-3.
Date of creation: 01 Sep 2004
Date of revision: 01 Apr 2006
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Foreign Direct Investment; Immigration; Imports;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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