Contributions

  • Noy, Ilan. - Contributor
  • National Bureau of Economic Research. - Contributor

Publication

2005 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts

Language

English

Word Count

7,000 words, Guess

Page Count

28 pages

Identifiers

Description

"The purpose of this paper is to investigate the intertemporal linkages between FDI and disaggregated measures of international trade. We outline a model exemplifying some of these linkages, describe several methods for investigating two-way feedbacks between various categories of trade, and apply them to the recent experience of developing countries. After controlling for other macroeconomic and institutional effects, we find that the strongest feedback between the sub-accounts is between FDI and manufacturing trade. More precisely, applying Geweke (1982)%u2019s decomposition method, we find that most of the linear feedback between trade and FDI (81%) can be accounted for by Granger-causality from FDI gross flows to trade openness (50%) and from trade to FDI (31%). The rest of the total linear feedback is attributable to simultaneous correlation between the two annual series"--National Bureau of Economic Research web site.

Subjects

Series Statement

  • NBER working paper series -- working paper 11403.
  • Working paper series (National Bureau of Economic Research) -- working paper no. 11403.

Links

Other Editions

  • FDI and trade--two way linkages?National Bureau of Economic Research2005

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