Research

International Trade Foreign Direct Investments, and Domestic Market Performance

We develop a model to estimate simultaneously import shares, export shares, outward foreign direct investment and domestic profits for a large sample of U.S. manufacturing industries. In our model, trade barriers alter the ability of domestic market structure to influence domestic performance. The results indicate that trade flows behave as expected in response to factor intensity. Profits are disciplined by imports and enhanced by exports. Concentration reduces both import and export shares but economies of scale increase them. Exports are complements rather than substitutes for foreign direct investment.

Publication Information
Article Title: International Trade Foreign Direct Investments, and Domestic Market Performance
Journal: Eastern Economic Journal (1996)
v. 22 iss. 1 pp. 63-74
Author(s): MacPhee, Craig R
Researcher Information
    
MacPhee, Craig R
MacPhee, Craig R
Emeritus
Expertise:
  • Emerging Markets and Transition Economies
  • Import Tariffs and Tax Policies
  • International Trade & Finance
Economics
CBA 353
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2319
Fax: (402) 472-9700
cmacphee1@unl.edu