EconPapers    
Economics at your fingertips  
 

Trade and Investment in the Global Economy

James Anderson, Mario Larch and Yoto Yotov

No 6625, CESifo Working Paper Series from CESifo

Abstract: We develop a dynamic multi-country trade model with foreign direct investment (FDI) in the form of non-rival technology capital. The model nests structural gravity subsystems for FDI and trade, with accumulation/decumulation of phyisical and technology capital in transition to the steady state. The empirical importance of the FDI channel is demonstrated comparing actual aggregate cross-section data for 89 countries in 2011 to a hypothetical world without FDI. The gains from FDI amount to 9% of world’s welfare and to 11% of world’s trade, unevenly distributed among winners and losers. Net exports of FDI substitute for export trade in the results.

Keywords: foreign direct investment; trade; trade liberalization; capital accumulation (search for similar items in EconPapers)
JEL-codes: F10 F43 O40 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp6625.pdf (application/pdf)

Related works:
Working Paper: Trade and Investment in the Global Economy (2017) Downloads
Working Paper: Trade and Investment in the Global Economy (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6625

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe (wohlrabe@ifo.de).

 
Page updated 2025-01-21
Handle: RePEc:ces:ceswps:_6625