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Export-Platform FDI: Cannibalization or Complementarity? / Pol Antràs, Evgenii Fadeev, Teresa C. Fort, Felix Tintelnot.
- Format:
- Book
- Author/Creator:
- Antràs, Pol.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w32081.
- NBER working paper series no. w32081
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2024.
- Summary:
- We develop a model of export-platform foreign direct investment (FDI) in which final goods are produced only with labor and there are no fixed costs of exporting. We derive a simple condition that determines whether an MNE's plants are substitutes or complements. This condition is shaped by the relative size of (i) the cross-firm elasticity of demand the MNE faces for its goods and (ii) the within-firm elasticity of labor substitution across the MNE's plants. In two extensions of the model, we show that this complementarity is enhanced by firm-level (rather than plant-level) fixed costs of exporting and of sourcing inputs.
- Notes:
- Print version record
- January 2024.
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