Foreign Direct Investment And International Trade In A Continuum Ricardian Trade Model
- Topics:
- Foreign Direct Investment
- Tags:
- Currency & Foreign Exchange,
- Elsevier,
- Finance,
- Foreign Direct Investment,
- Foreign Direct Investment (FDI),
- Investment,
- Welfare
- Source:
- Elsevier
FREE Registration is required
Overview: The authors has developed a continuum Ricardian trade model to capture both North - South trade and technology transfer via Foreign Direct Investment (FDI) by MultiNational Enterprises (MNEs). It is shown that there is a unique range of products produced in the South by MNEs. In the case of an infinitely elastic supply of expatriates, if the ability of Southern workers in absorbing Northern technology increases, then; The range of MNE production increases; Northern worker's welfare and Southern workers' welfare change in opposite directions; and the world aggregate welfare increases under certain conditions. Paper explores issues such as North - South wage gaps, FDI policies and the product cycle.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 233KB | Date: May 2004 | Pages: 25
