PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2018 | nr 2 (41) | 91--112
Tytuł artykułu

Leader-Follower Model of Reciprocal FDI and International Trade

Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
In this paper we develop a two-country leader-follower model of reciprocal horizontal foreign direct investment (FDI) and international trade. First, we identify the conditions necessary for exporting and FDI depending on trade costs and the cost of foreign investment. Then, we demonstrate how various types of equilibriums may emerge in the short run and the long run depending on various combinations of the parameters of the model. Our model predicts that in the short run equilibriums the levels of output supplied by the home (foreign) firm to the home country market are bigger (smaller) compared to the long-run equilibriums. Therefore, the first mover advantage should be gradually disappearing over time. In addition, our model suggests several empirically testable hypotheses concerning the behavior of total output and prices in the industry after trade and investment liberalization.(original abstract)
Rocznik
Numer
Strony
91--112
Opis fizyczny
Twórcy
  • University of Warsaw, Poland
Bibliografia
  • Antràs, P., Yeaple, S. R., Multinational Firms and the Structure of International Trade [in:] Helpman E., Rogoff K. and Gopinath G. (eds.), Handbook of International Economics, vol. 4, pp. 55-130. Elsevier, Amsterdam, 2015.
  • Barba Navaretti, G., Venables, A., Multinational Firms in the World Economy. Princeton University Press, Princeton, 2004.
  • Bernard, A. B., Jensen, J. B., Redding, S. J., Schott, P. K., The Empirics of Firm Heterogeneity and International Trade, "Annual Review of Economics" 4, pp. 283-313, 2012.
  • Bergstrand, J. H., Egger, P., A Knowledge and Physical Capital Model of International Trade Flows, Foreign Direct Investment and Multinational Enterprises, "Journal of International Economics" 73(2), pp. 278-308, 2007.
  • Bergstrand, J. H., Egger, P., Shouldn't Physical Capital also Matter for Multinational Enterprise Activity?, "Review of International Economics" 21(5), pp. 945-965, 2013.
  • Brander, J., Intra-industry Trade in Identical Commodities, "Journal of International Eco-nomics" 11, pp. 1-14, 1981.
  • Brander, J., Krugman, P., A 'Reciprocal Dumping' Model of International Trade, "Journal of International Economics" 15, pp. 313-321, 1983.
  • Caves, R., Multinational Enterprise and Economic Analysis, 3rd edition. Cambridge University Press, Cambridge, 2007.
  • Chen, Y., Horstmann, I. J., Markusen, J. R., Physical Capital, Knowledge Capital, and the Choice between FDI and Outsourcing, "Canadian Journal of Economics" 45(1), pp. 1-15, 2012.
  • Cieślik, A., Horizontally Integrated MNE and Plant Heterogeneity, "Bank i Kredyt" 44(6), pp. 605-622, 2013.
  • Cieślik, A., Imperfect Competition, Productivity Differences and Proximity-Concentration Trade-offs, "Ekonomia" 40, pp. 7-30, 2015a.
  • Cieślik, A., North-North FDI, Exporting and the First Mover Advantage, "Bank i Kredyt", 46(2), pp. 109-128, 2015b.
  • Cieślik, A., Exports versus FDI in Smith-Motta Framework, "Equilibrium. Quarterly Journal of Economics and Economic Policy", 11(2), pp. 189-218, 2016.
  • Cieślik, A., Ryan, M., Productivity Differences and Foreign Market Entry in an Oligopolistic Industry, "Open Economies Review" 23(3), pp. 531-557, 2012.
  • Greenaway, D., Kneller, R., Firm Heterogeneity, Exporting and Foreign Direct Investment, "Economic Journal" 117 (517), pp. 134-161, 2007.
  • Girma, S., Kneller, R., Pisu, M., Exports versus FDI: An Empirical Test, "Review of World Economics" 141(2), pp. 193-218, 2005.
  • Helpman, E., Melitz, M., Yeaple, S., Export versus FDI with Heterogeneous Firms, "American Economic Review" 94, pp. 300-316, 2004.
  • Horstmann, I., Markusen, J., Strategic Investments and the Development of Multinationals, "International Economic Review" 28, pp. 109-121, 1987.
  • Horstmann, I., Markusen, J., Endogenous Market Structure in International Trade, "Journal of International Economics" 32, pp. 109-129, 1992.
  • Kleinert, J., The Role of Multinational Enterprises in Globalization. Springer, Berlin-Heidelberg, 2004.
  • Krugman, P., Increasing Returns, Monopolistic Competition, and International Trade, "Journal of International Economics", vol. 9, no. 4, pp. 469-479, 1979.
  • Krugman, P., Scale Economies, Product Differentiation and the Pattern of Trade, "American Economic Review" 70(5), pp. 950-959, 1980.
  • Krugman, P., The 'New Theories' of International Trade and Multinational Enterprise [in:] Audretsch, D. B., Kindleberger, Ch. P., (eds.), The Multinational Corporation in the 1980s. MIT Press, Cambridge, MA, 1983.
  • Lieberman, M. B., Montgomery, D. B., First Mover Advantages, "Strategic Management Journal" 19, pp. 1111-1125, 1998.
  • Markusen, J. R., Multinationals, Multi-plant Economies and the Gains From Trade, "Journal of International Economics", vol. 16, no. 3-4, pp. 205-226, 1984.
  • Markusen, J., Multinational Firms and the Theory of International Trade. MIT Press, Cambridge, MA, 2002.
  • Markusen, J. R., Multinational firms [in:] Bernhofen, D., Falvey, R., Greenaway, D., Kreicke-meier, U. (eds.), Palgrave Handbook of International Trade. Palgrave Macmillan, 2013.
  • Markusen, J. R., Stähler, F., Endogenous Market Structure and Foreign Market Entry, "Review of World Economics" 147(2), pp. 195-215, 2011.
  • Markusen, J. R., Strand, B., Adapting the Knowledge-capital Model of the Multinational Enterprise to Trade and Investment in Business Services, "World Economy" 32(1), pp. 6-29, 2009.
  • Markusen, J. R., Venables, A. J., Multinational Firms and the New Trade Theory, "Journal of International Economics", vol. 46, no. 2, pp. 183-203, 1998.
  • Markusen, J. R., Venables, A. J., The Theory of Endowment, Intra-Industry and Multinational Trade, "Journal of International Economics", vol. 52, no. 2, pp. 209-234, 2000.
  • Melitz, M., The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity, "Econometrica" 71, pp. 1695-1725, 2003.
  • Melitz, M. J., Redding, S. J., Heterogeneous Firms and Trade [in:] Helpman, E., Rogoff, K., Gopinath, G. (eds.), Handbook of International Economics, vol. 4, pp. 1-54. Elsevier, Amsterdam, 2015.
  • Motta, M., Multinational Firms and the Tariff Jumping Argument, "European Economic Review" 36, pp. 1557-1571, 1992.
  • Smith, A., Strategic Investment, Multinational Corporations and Trade Policy, "European Economic Review" 31, pp. 89-96, 1987.
  • Stackelberg, H., von, Marktform und Gleichgewicht. Julius Springer, Vienna, 1934.
  • Sutton, J., Sunk Costs and Market Structure. MIT Press, Cambridge, MA, 1991.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171531780

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.