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Immigration, FDI, and International Trade

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Author Info

  • Chong-Uk Kim

    ()
    (University of Oregon Economics Department (Student))

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    Abstract

    This 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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    File URL: http://economics.uoregon.edu/papers/UO-2006-3_Kim_Immigration.pdf
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    Bibliographic Info

    Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2006-3.

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    Length: 28
    Date of creation: 01 Sep 2004
    Date of revision: 01 Apr 2006
    Handle: RePEc:ore:uoecwp:2006-3

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    Related research

    Keywords: Foreign Direct Investment; Immigration; Imports;

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