A knowledge-and-physical-capital model of international trade flows, foreign direct investment, and multinational enterprises

Journal of International Economics

Volumn 73, Issue 2, 2007, Pages 278-308

  Bergstrand, Jeffrey H ^a,b   Egger, Peter ^b,c,d  

^a UNIVERSITY OF NOTRE DAME   (United States)

^b CESIFO   (Germany)

^c UNIVERSITY OF MUNICH   (Germany)

^d IFO INSTITUTE   (Germany)

Author keywords

Foreign direct investment; Gravity equation; International trade; Multinational firms

Indexed keywords

BILATERAL AGREEMENT; FOREIGN DIRECT INVESTMENT; INTERNATIONAL TRADE; MODELING; MULTINATIONAL ENTERPRISE; TRADE FLOW;

EID: 34548725704     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2007.03.004     Document Type: Article

References (41)

1. Anderson J.E., and van Wincoop E. Gravity with gravitas: a solution to the border puzzle. American Economic Review 93 1 (2003) 170-192 (March)
2. Anderson J.E., and van Wincoop E. Trade costs. Journal of Economic Literature 42 3 (2004) 691-751 (September)
3. Baier S.L., and Bergstrand J.H. The growth of world trade: tariffs, transport costs, and income similarity. Journal of International Economics 53 1 (2001) 1-27 (February)
4. Baier S.L., and Bergstrand J.H. Do free trade agreements actually increase members' international trade?. Journal of International Economics 71 1 (2007) 72-95 (February)
5. Baier S.L., Dwyer G., and Tamura R. How important are capital and total factor productivity for economic growth?. Economic Inquiry 44 1 (2004) 23-49 (January)
6. Baldwin R.E., and Ottaviano G. Multiproduct multinationals and reciprocal FDI dumping. Journal of International Economics 54 (2001) 429-448
7. Barba Navaretti G., and Venables A.J. Multinational Firms in the World Economy (2004), Princeton University Press, Princeton, NJ
8. Bergstrand J.H., and Egger P. A theoretical and empirical model of international trade and foreign direct investment with outsourcing: part I, developed countries. Working Paper (2004) April
9. Bergstrand J.H., and Egger P. A knowledge-and-physical-capital model of international trade, foreign direct investment, and foreign affiliate sales: developed countries. Working Paper (2006) Jan
10. Blonigen B.A. In search of substitution between foreign production and exports. Journal of International Economics 53 1 (2001) 81-104 (February)
11. Blonigen B.A. A review of the empirical literature on FDI determinants. Atlantic Economic Journal 33 4 (2005) 383-403 (December)
12. Blonigen B.A., Davies R.B., and Head K. Estimating the knowledge-capital model of the multinational enterprise: comment. American Economic Review 93 3 (2003) 980-994
13. Blonigen, Bruce A., Davies, Ronald B.,Waddell, Glen R., Naughton, H., in press. FDI in space: spatial autoregressive relationships in foreign direct investment. European Economic Review.
14. Borga M., and Yorgason D.R. Direct investment positions for 2001: country and industry detail. Survey of Current Business (2002), U.S. Department of Commerce 25-35 July
15. Braconier H., Norback P.-J., and Urban D. Reconciling the evidence on the knowledge-capital model. Review of International Economics 13 4 (2005) 770-786 (September)
16. Carr D., Markusen J.R., and Maskus K.E. Estimating the knowledge-capital model of the multinational enterprise. American Economic Review 91 3 (2001) 693-708 (June)
17. Egger P. A note on the proper econometric specification of the gravity equation. Economics Letters 66 1 (2000) 25-31
18. Ekholm, Karolina, Forslid, Rikard, Markusen, James R., in press. Export-platform foreign direct investment. Journal of the European Economic Association.
19. Feenstra R.C. Advanced International Trade: Theory and Evidence (2004), Princeton U. Press, Princeton, NJ
20. Frankel J.A. Regional Trading Blocs in the World Economic System (1997), Institute for International Economics, Washington, DC
21. Goldin C., and Katz L.F. The origins of technology-skill complementarity. Quarterly Journal of Economics 113 3 (1998) 693-732
22. Grazalian P.L., and Furtan W.H. The border effects: recognizing the role of FDI. Working Paper (2005), University of Saskatchewan
23. Griliches Z. Capital-skill complementarity. Review of Economics and Statistics 51 4 (1969) 465-468 (Nov.)
24. Head K., and Ries J. Overseas investment and firm exports. Review of International Economics 9 1 (2001) 108-122 (February)
25. Head K., and Ries J. Increasing returns versus national product differentiation as an explanation for the pattern of U.S-Canada Trade. American Economic Review 91 4 (2001) 858-876 (September)
26. Helpman E. Trade, FDI, and the organization of firms. Journal of Economic Literature 44 3 (2006) 589-630 (September)
27. Helpman E., and Krugman P. Market Structure and Foreign Trade (1985), MIT Press, Cambridge, MA
28. Helpman E., Melitz M., and Yeaple S. Export versus FDI with heterogeneous firms. American Economic Review 94 1 (2004) 300-316 (March)
29. Kleinert J., and Toubal F. Gravity for FDI. Working Paper (2005), Georg-August-Universitat Gottingen
30. Lai H., and Zhu S.C. U.S. exports and multinational production. Review of Economics and Statistics 88 3 (2006) 531-548 (August)
31. Lipsey R.E. Home and host country effects of FDI. NBER Working Paper vol. 9293 (2002) October
32. Markusen J.R. The boundaries of multinational enterprises and the theory of international trade. Journal of Economic Perspectives 9 2 (1995) 169-189 (Spring)
33. Markusen J.R. Multinational Firms and the Theory of International Trade (2002), MIT Press, Cambridge, MA
34. Markusen J.R., and Venables A.J. The theory of endowment, intra-industry, and multi-national trade. Journal of International Economics 52 (2000) 209-234 (December)
35. Martin P., and Rey H. Financial supermarkets: size matters for asset trade. Journal of International Economics 64 2 (2004) 335-361 (December)
36. McCulloch R. US direct foreign investment and trade. In: Erdilek A. (Ed). Multinationals as Mutual Invaders: Intra-Industry Direct Foreign Investment (1985), St. Martin's Press, New York 129-151
37. McCulloch R. New perspectives on foreign direct investment. In: Froot K. (Ed). Foreign Direct Investment (1993), University of Chicago Press, Chicago 37-53
38. Mundell R. International trade and factor mobility. American Economic Review 47 3 (1957) 321-335
39. John M., and Grubert H. Empirical asymmetries in foreign direct investment and taxation. Journal of International Economics 62 2 (2004) 337-358 (March)
40. Shim K. Border effects and FDI: can FDI explain the border puzzle?. Working Paper (2005), U. of Virginia
41. Slaughter M.J. Production transfer within multinational enterprises and American wages. Journal of International Economics 50 2 (2000) 449-472 (April)