Multinational Corporations and Pacific Regionalism
The purpose of this paper is twofold. The first is to determine empirically whether there is a unique regional model of foreign direct investment (FDI) somewhere in the AsiaPacific region, driven by complex network behaviour of multinational corporations. The second is to determine empirically whether the investment provisions of preferential trade agreements (PTAs) have had any influence on this regional investment behaviour. The results suggest that the answer to the first question is affirmative and the answer to the second is negative. They show that when FDI and trade are sufficiently driven by fundamentals, as in Asia, the resulting network patterns of investment do not need to be boosted by investment provisions of PTAs. Further, the network patterns can be sufficiently strong to insulate a country from investment diversion when the FDI source countries play the PTA game elsewhere. So the investment provisions of PTAs pose neither a threat nor a promise to FDI in the Asian region. But a very real threat may come from the trade provisions of PTAs.
|Date of creation:||Jan 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.eaber.org
More information through EDIRC
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.:
- Eduardo Levy Yeyati & Ernesto Stein & Christian Daude, 2004.
"The FTAA And The Location Of FDI,"
Working Papers Central Bank of Chile
281, Central Bank of Chile.
- Eduardo Levy Yeyati & Christian Daude & Ernesto Stein, 2002. "The FTAA and the Location of FDI," Business School Working Papers diecisiete, Universidad Torcuato Di Tella.
- Eduardo Levy Yeyati & Ernesto H. Stein & Christian Daude, 2003. "The FTAA and the Location of FDI," Research Department Publications 4341, Inter-American Development Bank, Research Department.
When requesting a correction, please mention this item's handle: RePEc:eab:tradew:21836. 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: (Shiro Armstrong)
If references are entirely missing, you can add them using this form.