Economics, Econometrics and Finance
6 years ago

Global FDI Patterns Unveiled: How Multinationals Drive Trade Dynamics

1 view
RePEc: Research Papers in Economics
Multiproduct Multinationals and Reciprocal FDI Dumping
Richard Baldwin, Gianmarco I.P. Ottaviano

Paper Summary

The article discusses how foreign direct investment (FDI) between rich nations mirrors their trade patterns. The traditional model of multinational corporations (MNCs) doesn't fully explain this correlation. The researchers introduce a new model where MNCs engage in both FDI and trade within the same industry.

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