학술저널
Foreign Direct Investment and Host-Country Trading Blocs
Foreign Direct Investment and Host-Country Trading Blocs
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제15권 제4호
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2000.12565 - 584 (20 pages)
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We consider the impact of preferential trade agreements (PTAs) on horizontal foreign direct investment (FDI) coming from parent countries outside the PTA. While easier access to a larger market due to a PTA may justify new FDI, preexisting investments may be rationalized as firms concentrate production in a single plant in the PTA. Which effect dominates depends on the extent of pre-PTA tariff jumping. The number of firms in the industry and non-PTA welfare may rise or fall. PTA welfare increases regardless of PTA-induced changes in inward FDI.
Ⅰ. Introduction
Ⅱ. The General Model
Ⅲ. Solving the Model
Ⅳ. Conclusions
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