The impact of 3D printing on trade and FDI

Ana Lucia Abeliansky, Inmaculada Martínez-Zarzoso and Klaus Prettner

No 262, University of Göttingen Working Papers in Economics from University of Goettingen, Department of Economics

Abstract: This paper analyzes the effects of 3D printing technologies on the volume of trade and on the structure of FDI. A standard model with firm-specific heterogeneity generates three main predictions. First, 3D printers are introduced in areas with high economic activity that also face high transport costs. Second, technological progress related to 3D printing machines leads to a gradual replacement of FDI that relies on traditional production structures with FDI based on 3D printing techniques. At this stage international trade stays unaffected. Finally, at later stages, with 3D printing machines being widely used, further technological progress in 3D printing leads to a gradual replacement of international trade. Empirical evidence indicates that countries subject to higher transport costs and with high levels of economic activity are indeed among the ones that import more 3D printers. Anecdotal evidence also supports the second and third predictions of the model.

Keywords: 3D printing; FDI; trade; technological change; transport costs (search for similar items in EconPapers)
JEL-codes: F10 F23 O33 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-int and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Working Paper: The impact of 3D printing on trade and FDI (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cegedp:262

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