A firm can serve overseas customers by exporting or by producing in the foreign market. Thus, ceteris paribus, one might expect increases in overseas investment to displace exports. However, most empirical work has found a positive relation between the two variables. The authors use a panel...

Growing international trade and increasing congestion focus attention on trade facilitation. Ocean ports are a central and necessary component in facilitating trade. Yet, there is only limited comprehensive information available on the efficiency of ports or evidence of the effect of port...

Recently the horizontal and vertical models of foreign direct investment (FDI) have been synthesized into the knowledge-capital (KK) model. Empirical tests, however, find that the horizontal model cannot be rejected in favor of the KK model. I suggest this is because the empirical specifications...

Fixed costs play a crucial role in current models of foreign direct investment (FDI), yet they are almost entirely ignored in empirical treatments of FDI. We fill this gap by using a 1989-2001 panel of FDI flows into Iceland to examine the determinants of fixed costs for multinational firms and...

It is well established that the threat of antidumping duties can help sustain collusion between a foreign firm and its domestic counterpart. However, when the foreign firm is a multinational with a subsidiary in the domestic country, that subsidiary can undermine efforts for protection, thereby...