The attempt to examine the relationship between FDI and trade has a long history in international trade. There is little corresponding empirical research examining the impact of FDI flows on the two margins. FDI may expand trade through two channels, the extensive margin (the range of existing...

Using income growth to explain trade flows has a long history in international trade. This paper examines the income elasticities for the categories of goods to be consistent with the theoretical implications, using the trade flows between China and Korea over the sample period of 1991-2008. The...