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A non-monotonic relationship between FDI and trade

Article ID Journal Published Year Pages File Type
5062501 Economics Letters 2007 5 Pages PDF
Abstract
This paper presents a non-monotonic relationship between foreign direct investment and trade based on the idea that, although FDI eliminates trade costs on the final good, the investing firm has to bear increased trade costs on an intermediate good.
Keywords
F23R30L12Tradeforeign direct investmentFirm location
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
A non-monotonic relationship between FDI and trade
Authors
José Pedro Pontes,
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Journal
Economics Letters
Journal: Economics Letters
Related Categories
F23
R30
L12
Trade
foreign direct investment
Firm location
Economics and Econometrics
Economics, Econometrics and Finance (General)
Finance
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