Foreign direct investment and trade in transition countries: Tracing links. A sequel
This paper deals with the interactions between outward investments of western multinationals and export performance of their affiliates in transition countries. It argues that multinationals make an important contribution to increasing, diversifying and up-grading trade, because they are able to open the access to advanced technologies and, thereby, to international markets. The paper reviews the theoretical arguments, presents and extracts some stylized facts and discusses the policy implications of our research.
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