A non-monotonic Relationship between FDI and Trade

The Interactive Relationship between Regional Trade Integration and Foreign Direct Investment

E conomic integration among countries has continued to deepen over the past decade. This is especially visible at the regional level, with the escalation of Regional Integration Agreements (RIAs) ranging from Free Trade Areas (FTAs) to Customs Unions (CUs). Nowadays, many developing countries have entered a new regional integration agreement with developed and developing countries. S...

Revisiting the Nexus of FDI and Employment in International Trade: Evidence from the Emerging Construction Service Sector

T his study examines the relationship between Foreign Direct Investment (FDI) and employment in the Indonesia construction service sector. The method used in this study is Panel VECM Granger. The data used are the data of FDI inflow and employment in the construction sector in some provinces, namely North Sumatra, Riau, Jakarta, West Java, East Java, and...

Sustaining The Goose That Lays The Golden Egg: A Continuous Treatment Of Technological Transfer

This paper proposes a simple model of the trade-offs perceived by innovating firms when investing in countries with limited intellectual property rights (IPR). The model allows for a continuous treatment of technology transfer and production cost gains occurring through FDI. While it does not consider possible changes in rates of innovation caused by changes in intellectual property rights in d...

Panel Causality Relationship Among FDI And Trade (Evidence From 16 Advanced Europe Countries)

Risk, Firm Heterogeneity, and Dynamics of FDI Entry

We study the dynamics of FDI entry under a setting with firm heterogeneity and FDI uncertainty. The risk of FDI failure depends positively on the complexity of production technology, negatively on the quality of infrastructure in the host country, and evolves over time with the extent of knowledge diffusion. The incorporation of FDI uncertainty leads to a non-monotonic relationship between tech...