Markusen, James R.; Rutherford, Thomas F.; Tarr, David G. - 2022
own. These intermediate services are often non-traded, or costly to trade, and are best transferred through foreign direct … quite different from those that impact on trade in goods. We develop a model of these services in this paper. Results show … pattern of trade in goods can reverse when FDI is permitted, and (3) the optimal tax on FDI (which we do not advocate as a …