Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To … explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the … reason of growing trade in intermediate goods in the cross-section and the time-series framework. The evidence for …

if EU enlargement has had any diversion effects on trade between the EU and Russia at all, they have been minimal, while … robust growth in both the EU and Russia, as well as high oil and gas prices, has boosted trade. Likewise, FDI to and from …

is discouraged when trade costs fall. This seems to conflict with the experience of the 1990s, when trade liberalisation … and technological change led to dramatic reductions in trade costs yet FDI grew much faster than trade. Two possible … resolutions to this paradox are explored. First, horizontal FDI in trading blocs is encouraged by intra-bloc trade liberalisation …