A non-monotonic Relationship between FDI and Trade

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.

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Year of publication:	2006
Authors:	Pontes, José Pedro
Institutions:	Fakultät Wirtschaftswissenschaften, Technische Universität Dresden
Subject:	Foreign Direct Investment \| Trade \| Theory of Location

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Extent:	application/pdf
Series:	Dresden Discussion Paper Series in Economics. - ISSN 0945-4829.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 05/06
Classification:	L12 - Monopoly; Monopolization Strategies ; R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location ; F23 - Multinational Firms; International Business
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009226260