Exports, trade costs and FDI entry: evidence from Japanese firms

Impact of FDI on Domestic Firms’ Exports in China

Trade costs , firms and productivity $

This paper examines the response of U.S. manufacturing industries and plants to changes in trade costs using a unique new dataset on industry-level tariff and transportation rates. Our results lend support to recent heterogeneous-firm models of international trade that predict a reallocation of economic activity towards high-productivity firms as trade costs fall. We find that industries experi...

Exports versus FDI: do firms use FDI as a mechanism to smooth demand volatility?

In this paper, we first develop a simple two-period model of oligopoly to show that, under demand uncertainty, whether a firm chooses to serve foreign markets by exports or via foreign direct investment (FDI) may depend on demand volatility along with other well-known determinants such as size of market demand and trade costs. Although fast transport such as air shipment is an option for export...

Technological Spillovers From FDI : Evidence from Tunisian Manufacturing Firms

Foreign Direct Investment (FDI) in developing countries is expected to foster technology transfer from foreign-owned to local firms. Using detailed panel data from Tunisian manufacturing firms, we show that technological spillovers generated by FDI, as a form of technology transfer, help firms move near the best practice frontier (production frontier) measured by the Schmidt and Sickles method....

Panel Causality Relationship Among FDI And Trade (Evidence From 16 Advanced Europe Countries)