THE UNITED-STATES EXPORT AND FOREIGN DIRECT-INVESTMENT LINKAGE IN CANADIAN MANUFACTURING-INDUSTRIES

The objectives of this article are to: 1) explore the linkage between export penetration of a host country's markets and foreign direct investment activity in those markets, and 2) provide a possible rationale for the direct investment-cum-export penetration linkage. Results indicate that the U.S. originating foreign direct investment market share and U.S. export market share in Canada are mutually good "predictors" of each other. Results also support the arguments that the direct investment-export profile may be dependent to some degree upon: the amount of processing intensity that characterizes a particular industry's production systems; the occupational orientation of its research and development staff; the advertising media usage profile that characterizes the industry; and the size of the firms that typify the given industry.