A knowledge-and-physical-capital model of international trade flows, foreign direct investment, and multinational enterprises

• 成果类型: Article
• 署名作者: Bergstrand, Jeffrey H.; Egger, Peter
• 署名单位: University of Notre Dame; University of Notre Dame; Leibniz Association; Ifo Institut; University of Munich; Leibniz Association; Ifo Institut
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2007.03.004
• 发表日期: 2007
• 页码: 278-308
• 关键词: foreign direct investment; international trade; multinational firms; gravity equation

摘要

This paper addresses two important issues at the nexus of the literatures on international trade, foreign direct investment (FDI), foreign affiliate sales (FAS), and multinational enterprises (MNEs). First, the introduction of a third internationally-mobile factor (physical capital) to the standard 2 x 2 x 2 knowledge capital model of MNEs with skilled and unskilled labor allows us to resolve fairly readily the puzzle in the modem MNE literature that foreign affiliate sales among two identical economies completely displace their international trade. Intra-industry trade and intra-industry FDI (and FAS) can coexist for national and multinational firms (with identical productivities) in identical countries. Second, the introduction also of a third country to the model suggests a formal N-country theoretical rationale for estimating gravity equations of bilateral FDI flows and FAS, in a manner consistent with estimating gravity equations for bilateral trade flows. (C) 2007 Elsevier B.V. All rights reserved.