The Influence of Policies on Trade and Foreign Direct Investment

Giuseppe Nicoletti, Dana Hajkova and Kwang-Yeol Yoo work in the OECD Economics Department; Steve Golub and Daniel Mirza are, respectively, Professor of Economics at Swarthmore College (United States) and Research Fellow at the University of Nottingham (United Kingdom), and were consultants to the OECD Economics Department when this paper was written. The authors wish to thank Sveinbjörn Blöndal, Jørgen Elmeskov, Michael Feiner, Nigel Pain and the many colleagues in the OECD Economics Department and other OECD Directorates who contributed to improve this paper with their useful comments. Martine Levasseur and Janice Gabela provided excellent statistical and editorial assistance. The opinions expressed are personal and do not engage the OECD or its member countries. TABLE OF CONTENTS