A Non-monotonic Relationship between FDI and Trade
JOURNAL
YEAR
Sep 21, 2007
TYPE
Articles in journals
AUTHORS
Pontes, J.
VOL Nº
95
PAGES
4
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.