Title :
Intra-industrial Trade and Horizontal FDI: A Unified Model
Author :
Zhen-dong, SU ; Li, LIU
Author_Institution :
Dalian Univ. of Technol., Dalian
Abstract :
On the basis of previous research literature, this paper constructs a unified general equilibrium model of intra-industrial trade which can endogenize horizontal foreign direct investment (FDI) by introducing the horizontal multinational enterprises (MNEs) into the model of the new trade theory to illuminate the rationale for coexistence of intra-industrial trade and horizontal FDI between developed countries from the perspective of the theory. Based on the analysis of general equilibrium and its inframarginal comparative statics of local equilibrium structures of the model, this paper deeply analyzes such theoretical problems as the choice on the specific mode of openness made by north developed countries while opening to each other and the relationship between intra-industrial trade and horizontal FDI of north developed countries.
Keywords :
econometrics; economic indicators; foreign exchange trading; international trade; investment; organisational aspects; country price index; horizontal foreign direct investment; horizontal multinational enterprise; inframarginal comparative statics; intraindustrial trade; statistical analysis; unified general equilibrium model; Conference management; Costs; Engineering management; Fault detection; International trade; Investments; Research and development; Software development management; Technology management; Technology transfer; a unified general equilibrium model of trade and FDI; developed countries; horizontal FDI; intra-industrial trade;
Conference_Titel :
Management Science and Engineering, 2007. ICMSE 2007. International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-7-88358-080-5
Electronic_ISBN :
978-7-88358-080-5
DOI :
10.1109/ICMSE.2007.4422033