1 option
A Linder Hypothesis for Foreign Direct Investment / Pablo D. Fajgelbaum, Gene M. Grossman, Elhanan Helpman.
- Format:
- Book
- Author/Creator:
- Fajgelbaum, Pablo D.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w17550.
- NBER working paper series no. w17550
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2011.
- Summary:
- We study patterns of FDI in a multi-country world economy. We develop a model featuring non-homothetic preferences for quality and monopolistic competition in which specialization is purely demand-driven and the decision to serve foreign countries via exports or FDI depends on a proximity-concentration trade-off. We characterize the joint patterns of trade and FDI when countries differ in income distribution and size and show that FDI is more likely to occur between countries with similar per capita income levels. The model predicts a Linder Hypothesis for horizontal FDI, which is consistent with the patterns we find using establishment-level data on multinational activity.
- Notes:
- Print version record
- October 2011.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.