Foreign Direct Investment and Trade in the Asia-Pacific Region: Complementarity, Distance and Regional Economic Integration

Bang Jeon and Susan F. Stone
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Susan F. Stone: Productivity Commission of Australia, Postal: Productivity Commission of Australia,

Journal of Economic Integration, 2000, vol. 15, 460-485

Abstract:

This paper investigates the relationship between FDI and trade in the Asia-Pacific economies by examining the bilateral flows of trade and FDI in a cross-sectional study. The estimation results based on the gravity model show a significant and positive relationship between trade and FDI, implying a comple mentary relationship. Estimated coefficients also imply that trade has a larger impact on FDI flows than such investment has on bilateral trade flows. It is evident that the distance between the home country and the host country is a significant resistance factor for trade, but not for FDI. The estimation results.

Keywords: Complementarity Between FDI and Trade; APEC (search for similar items in EconPapers)
JEL-codes: F15 F21 O53 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0141

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