Regional Integration and Foreign Direct Investment
This paper deals with the investment effects of regional integration agreements and discusses how such arrangements may affect inward and outward foreign direct investment flows in the integrating region. After setting up a conceptual framework for the analysis, we provide three studies focusing on different kinds of regional integration: North-North integration (Canada joining CUSFTA), North-South integration (Mexico's accession to NAFTA), and South-South integration (MERCOSUR). The main conclusion of the study is that the responses to an integration agreement largely depend on the environmental change brought about by the agreement and the locational advantages of the participating countries and industries. Moreover, the findings suggest that the most positive impact on FDI has occurred when regional integration agreements have coincided with domestic liberalization and macroeconomic stabilization in the member countries.
|Date of creation:||Apr 1997|
|Publication status:||Published as "Foreign District Investment and Employment: Home Country Experience in the United States and Sweden", Economic Journal (1997).|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- George N. Yannopoulos, 1990. "Foreign Direct Investment and European Integration: The Evidence from the Formative Years of the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 28(3), pages 235-259, 03.
- Diego Puga & Tony Venables, 1996.
"Trading arrangements and industrial development,"
LSE Research Online Documents on Economics
2284, London School of Economics and Political Science, LSE Library.
- Puga, Diego & Venables, Anthony J., 1997. "Trading arrangements and industrial development," Policy Research Working Paper Series 1787, The World Bank.
- Diego Puga & Anthony J. Venables, 1996. "Trading Arrangements and Industrial Development," CEP Discussion Papers dp0319, Centre for Economic Performance, LSE.
- V.N. Balasubramanyam & David Greenaway, 1992. "Economic Integration and Foreign Direct Investment: Japanese Investment in the EC," Journal of Common Market Studies, Wiley Blackwell, vol. 30(2), pages 175-194, 06.
- Fernández, Raquel, 1997.
"Returns to Regionalism: An Evaluation of Non-traditional Gains from RTAs,"
CEPR Discussion Papers
1634, C.E.P.R. Discussion Papers.
- Raquel Fernandez, 1997. "Returns to Regionalism: An Evaluation of Non-Traditional Gains from RTAs," NBER Working Papers 5970, National Bureau of Economic Research, Inc.
- Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
- Robert E. Lipsey & Magnus Blomstrom & Eric Ramstetter, 1995.
"Internationalized Production in World Output,"
NBER Working Papers
5385, National Bureau of Economic Research, Inc.
- Lipsey, Robert E. & Blomström, Magnus & Ramstetter, Eric, 1995. "Internationalized Production in World Output," SSE/EFI Working Paper Series in Economics and Finance 80, Stockholm School of Economics.
- Smith, Alasdair & Venables, Anthony J., 1988.
"Completing the internal market in the European Community : Some industry simulations,"
European Economic Review,
Elsevier, vol. 32(7), pages 1501-1525, September.
- Smith, Alasdair & Venables, Anthony J, 1988. "Completing the Internal Market in the European Community: Some Industry Simulations," CEPR Discussion Papers 233, C.E.P.R. Discussion Papers.
- Guy V. G. Stevens & Robert E. Lipsey, 1988.
"Interactions between domestic and foreign investment,"
International Finance Discussion Papers
329, Board of Governors of the Federal Reserve System (U.S.).
- Stevens, Guy V. G. & Lipsey, Robert E., 1992. "Interactions between domestic and foreign investment," Journal of International Money and Finance, Elsevier, vol. 11(1), pages 40-62, February.
- Robert E. Lipsey & Guy V.G. Stevens, 1988. "Interactions between Domestic and Foreign Investment," NBER Working Papers 2714, National Bureau of Economic Research, Inc.
- Gary Clyde Hufbauer & Jeffrey J. Schott, 1993. "NAFTA: An Assessment, Revised Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 70, January.
- Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
- Smith, Alasdair, 1992. "Measuring the effects of '1992'," Discussion Papers in Economics 07/92, Department of Economics, University of Sussex.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:6019. 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: ()
If references are entirely missing, you can add them using this form.