Economics, Econometrics and Finance
6 years ago

FDI liberalization in APEC regions brings greater benefits than trade.

Interactions Between Direct Investment and Trade in the Asia-Pacific Region
Hiro Lee, Dominique van der Mensbrugghe

Paper Summary

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The article explores how trade and foreign investment work together in the Asia-Pacific region. The researchers used a model to see how opening up trade and investment could affect economies in the region. They found that allowing more foreign investment would benefit APEC countries more than just focusing on trade. In the manufacturing sector, trade and foreign investment were shown to help each other out in the APEC regions.