Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/22732 
Year of Publication: 
2006
Series/Report no.: 
Dresden Discussion Paper Series in Economics No. 05/06
Publisher: 
Technische Universität Dresden, Fakultät Wirtschaftswissenschaften, Dresden
Abstract: 
This paper presents a non-monotonic relationship between foreign direct investment and trade based on the idea that, although FDI eliminates trade costs on the final good, the investing firm has to bear increased trade costs on an intermediate good.
Subjects: 
Foreign Direct Investment
Trade
Theory of Location
JEL: 
L12
R3
F23
Document Type: 
Working Paper

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