Abstract
The article reviews theoretical approaches and empirical results of the impact of foreign direct investment (FDI) on trade. Conventional trade theory suggests either trade creating or trade replacing effects. Resource-based, local market-oriented and internationally integrated investments are distinguished, with particular reference to affiliate learning and technological upgrading. The article concludes that, with the growth of international trade controlled by multinational companies (MNCs) and of internationally integrated intra-MNC networks, there is a steadily increasing complementarity between FDI and international trade.
| Original language | English |
|---|---|
| Pages (from-to) | 120 - 127 |
| Number of pages | 8 |
| Journal | Journal of International Relations and Development (formerly: The International Trade Journal) |
| Issue number | 2 |
| Publication status | Published - 2000 |