The FDI-Trade Relationship: Are Developing Countries Different?
نویسندگان
چکیده
This paper empirically examines the extent to which the FDI – trade relationship is affected by host-country heterogeneities associated with the development (income) and market servicing roles of Japanese FDI host countries. Using the counts and values of Japanese aggregate FDI and trade flows into more than 100 geographically and developmentally diverse countries, it is shown that Japanese FDI in the 1990s was generally trade creating. However, the extent to which FDI complemented trade varied by geographic, developmental, and market servicing status of the host countries. Our study also indicates that higher factor costs and exchange rate volatility lowered the occurrence and value of Japanese FDI. We observe that Japanese FDI during the reference period was mostly tariff jumping.
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تاریخ انتشار 2002