Reverse importing and asymmetric trade and FDI: a networks explanation

• 成果类型: Article
• 署名作者: Greaney, TM
• 署名单位: University of Hawaii System; University of Hawaii Manoa
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(03)00018-7
• 发表日期: 2003
• 页码: 453-465
• 关键词: Multinational corporations; Intra-industry trade; Foreign direct investment; reverse imports; networks

摘要

This paper considers the impact of business and social networks on international trade and FDI. I propose that differences in the strength of network effects across countries can produce asymmetric trade and investment flows that may lead to trade friction. A firm from a country with strong network effects has a cost advantage in selling to buyers from its own country. This advantage results in lower inward FDI, lower total imports but larger volumes of reverse imports into the country with strong network effects. The model's predictions match observed asymmetric trade and investment flows that sometimes lead to US-Japan trade friction. (C) 2003 Elsevier B.V. All rights reserved.