Trade cost reduction and foreign direct investment

被引:18
|
作者
Mukherjee, Arijit [1 ,2 ]
Suetrong, Kullapat
机构
[1] Univ York, Dept Econ & Related Studies, York YO10 5DD, N Yorkshire, England
[2] CESifo, Munich, Germany
关键词
Export; FDI; Trade cost; MULTINATIONAL FIRMS; ECONOMIC-INTEGRATION; LIBERALIZATION; COMPETITION; TECHNOLOGY; FDI; POLICY; EXPORT;
D O I
10.1016/j.econmod.2012.06.008
中图分类号
F [经济];
学科分类号
02 ;
摘要
While the "proximity-concentration" theory suggests a positive relationship between trade cost and foreign direct investment (FDI), there is ample evidence showing a negative relationship between them. We show that the possibility of exporting back to the home country from a host country, which is often referred as "home-country export platform FDI", may generate a negative relationship between trade cost and FDI. Market demand and product market competition may play important roles in this respect. (C) 2012 Elsevier B.V. All rights reserved.
引用
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页码:1938 / 1945
页数:8
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