In this paper, we investigate the links between inward foreign direct investment and imports in Spain. We show that FDI in this country has been trade-oriented, encouraging greater imports. Foreign production thus magnifies its potential gains with the conventional benefits of trade. A...

Historically, outward foreign direct investment has been contemplated as an alternative way of firms' internationalization. In this line, a relational substitution between exports and foreign direct investment would be expected. However, this seems to contrast with recent developments in the...