International Macroeconomics Dynamics, Endogenous Tradability And Foreign Direct Investment With Heterogeneous Firms
- Topics:
- Foreign Direct Investment
- Tags:
- Currency & Foreign Exchange,
- Finance,
- Foreign Direct Investment,
- Foreign Direct Investment (FDI),
- Investment,
- John Hopkins University
- Source:
- John Hopkins University
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Overview: The author studies the aggregate implications of the entry of MultiNational Firms (MNFs) in a two country Dynamic Stochastic General Equilibrium model in which firms have heterogenous productivity in the sense of Melitz (2003). Unlike the extant open economy macroeconomics literature, this model endogenizes both Foreign Direct Investment and exports as possible strategies of inter-nationalization of production, a feature that substantially improves the match between model-simulated moments and business cycle data along two dimensions.
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Format: PDF | Size: 609KB | Date: Nov 2006 | Pages: 50







