IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Foreign Direct Investment and Intra-Industry Trade - the Case of the United States

Listed author(s):
  • Tina Yiping Chen
Registered author(s):

    The possible link between intra-industry trade (IIT) and foreign direct investment (FDI) has attracted a great deal attention from some economists, but there has been little empirical research on the subject. There are two schools of thought on how FDI might cause IIT. One theory is that MNEs mostly produce differentiated goods, while the second theory posits that most intra-industry trade is intra-firm trade from MNEs. This paper uses data on US firms from the US Department of Commerce to examine the link between FDI and IIT. The data shows that US intra-firm trade is growing hand in hand with US FDI, and suggests that there may be a causal linkage. By using Spearman’s correlation analysis, this paper shows that the direct linkage between US FDI and IIT seems positive and strong. However, the theory that intra-firm trade is causing a link between FDI and IIT does not seem to be supported by a regional breakdown of the data.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 303.

    in new window

    Length: 17 pages
    Date of creation: May 2000
    Handle: RePEc:csg:ajrcau:303
    Contact details of provider: Postal:
    Canberra ACT 2601

    Phone: (61-2) 6249 3780
    Fax: (61-2) 6249 3941
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:csg:ajrcau:303. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Akira Kinefuchi)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.