International Trade, Foreign Direct Investment and Domestic Market Structure

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.

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	Rosenbaum, David I Professor of Economics Expertise: Antitrust Managerial Economics Public Utilities Economics CBA 360 P.O. Box 880489 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-2318 Fax: (402) 472-9700 drosenbaum1@unl.edu	Rosenbaum, David I	Economics
	MacPhee, Craig R Paul C. Burmeister College Professor of Economics Expertise: International - Asia International - Europe International Trade & Finance NAFTA Public Policy Analysis Economics CBA 353 P.O. Box 880489 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-2449 Fax: (402) 472-9700 cmacphee1@unl.edu	MacPhee, Craig R	Economics