More Intra-Region Direct Investment through Economic Integration?

• 영문명: More Intra-Region Direct Investment through Economic Integration? Modelling the Experience of the EU s Single Market
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Stefanie A. Haller
• 간행물 정보: 『Journal of Economic Integration』제25권 제3호, 427~456쪽, 전체 30쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2010.09.30

영문 초록

I apply the fixed versus variable cost trade-off associated with a multinational firm`s choice between investing abroad and exporting to a setting where the multinational is located inside an economically integrating region. I find that reducing obstacles to investment unambiguously favours setting up plants. When trade barriers decrease, typically, there will be consolidation of investment or a switch to exports. If, however, distance to destination markets matters for the multinational, export platform investment in one country will be induced. This highlights that export platform investment may be a supply option even inside an integrating region once countries are not assumed to be homogenous. Overall, the predictions of the model are indicative of some of the developments in trade and direct investment among EU countries during the Single Market Programme.

목차

Ⅰ. Introduction

Ⅱ. Trade and Foreign Direct Investment during the EU’s Single Market Programme

Ⅲ. The Model

Ⅳ. The Supply Decision of the MNE as a Monopolist

Ⅴ. The Supply Decision when the MNE Faces Competition

Ⅵ. Concluding Remarks

키워드

Multinational Firm Foreign Direct Investment Trade Regional Economic Integration