Host market characteristics, FDI, and the FDI - trade relationship
This paper empirically examines how a host nation's market characteristics, particularly its market maturity and role as an export platform, affect the amount of inward FDI it receives and its FDI - bilateral trade relationship with the FDI source. For the period 1989 - 1999, using Japanese outward FDI into 85 geographically and developmentally diverse countries, we find a positive and significant relationship between FDI inflows and the host's market maturity levels. However, the FDI - trade interaction between the host and the FDI source appears to vary inversely with the host country's market maturity level. In addition, after controlling for the host's market maturity, we find that the nature of the host's 'export platform' status also significantly impacts both inward FDI flows and the FDI - trade relationship.
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Volume (Year): 13 (2004)
Issue (Month): 2 ()
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References listed on IDEAS
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.:
- Leamer, E. & Levingsohn, J., 1994.
"International Trade Theory: The Evidence,"
368, Research Seminar in International Economics, University of Michigan.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003.
"Export versus FDI,"
Harvard Institute of Economic Research Working Papers
1998, Harvard - Institute of Economic Research.
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