search query: @author Ottaviano, G. I. P. / total: 3
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| Author: | Baldwin, R. E. Ottaviano, G. I. P. |
| Title: | Multiproduct multinationals and reciprocal FDI dumping |
| Journal: | Journal of International Economics
2001 : AUG, VOL. 54:2, p. 429-448 |
| Index terms: | Foreign investment Multinational companies Products Dumping |
| Freeterms: | FDI |
| Language: | eng |
| Abstract: | Global patterns of foreign direct investment (FDI) and trade are remarkably similar, yet mainstay theory has them as substitutes. In the paper, a model where multiproduct, final-goods firms simultaneously engage in intra-industry FDI and intraindustry trade are examined. The logic behind this two-way FDI is analogous to that of two-way trade in the Brander-Krugman reciprocal-dumping model. Namely, multiproduct firms use trade costs to reduce inter-variety competition by placing production of some varieties abroad. Since the varieties are differentiated, all varieties are sold in all markets. |
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