FDI and trade: complements and substitutes
This paper presents a non-monotonic relationship between foreign direct investment and trade based on the idea that, although FDI eliminates trade costs on the final good, the investing firm has to bear increased trade costs on an intermediate good.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL|
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
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- Helpman, Elhanan, 1984.
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AccessEcon, vol. 6(2), pages 1-8.
- José Pedro Pontes, 2003. "A Theory of the Relationship Between Foreign Direct Investment and Trade," Working Papers Department of Economics 2003/11, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
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- Nigel Pain, 2003.
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211, National Institute of Economic and Social Research.
- Bettina Becker & Nigel Pain, 2008. "What Determines Industrial R&D Expenditure In The Uk?," Manchester School, University of Manchester, vol. 76(1), pages 66-87, 01.
- J. Peter Neary, 2002.
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- repec:ebl:ecbull:v:6:y:2004:i:2:p:1-8 is not listed on IDEAS
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