Baldwin, Richard; Ottaviano, Gianmarco - C.E.P.R. Discussion Papers - 1998
The global pattern of foreign direct investment (FDI) is quite similar to the world trade pattern. In particular, intra …-industry FDI between rich nations is almost as pervasive as intra-industry trade among rich nations. In the ‘standard …’ multinational corporation (MNC) model (of Markusen, Venables, Brainard, and others), FDI is driven by a trade-off between proximity …