search query: @indexterm International trade / total: 2170
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| Author: | Amiti, M. Wakelin, K. |
| Title: | Investment liberalization and international trade |
| Journal: | Journal of International Economics
2003 : OCT, VOL. 61:1, p. 101-126 |
| Index terms: | Exports Foreign investment International trade Liberalization |
| Language: | eng |
| Abstract: | This paper estimates the cross-price elasticity of exports with respect to investment costs for bilateral relations between 36 countries. The authors show that the effect of reducing foreign direct investment costs on exports depends on country characteristics and trade costs. When countries differ in relative factor endowments and trade costs are low, investment liberalization stimulates exports, whereas when countries are similar in terms of relative factor endowments and size, and trade costs are moderate to high, investment liberalization reduces exports. |
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