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dc.contributor.authorALLUB, Lian
dc.date.accessioned2015-07-28T12:46:15Z
dc.date.available2015-07-28T12:46:15Z
dc.date.issued2015
dc.identifier.issn1830-7728
dc.identifier.urihttps://hdl.handle.net/1814/36615
dc.description.abstractThe gains from openness to trade and multinational production (MP) depend largely on country size. A large country may attract more foreign firms by closing itself to trade, while a small country may attract a larger amount of MP if trade costs with its neighbors are low because it can be used as an export platform. I develop a model to study these effects, where firms face non-convex decisions of whether to serve a foreign country by exporting from the home country, exporting from a third country, or producing in the foreign country. I calibrate the model separately for South America and Europe. I find that the gains from openness in Europe are double those in South America, and that the distribution of these gains varies less with size in South America. I also find that MP is more important in explaining the gains from openness in large countries, but the export platform mechanism is more important in small countries. Finally, I find that trade and MP have important implications for the size distribution of firms.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.relation.ispartofseriesEUI MWPen
dc.relation.ispartofseries2015/16en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectTradeen
dc.subjectMultinational productionen
dc.subjectBridge multinational productionen
dc.subjectSouth Americaen
dc.subjectEuropeen
dc.subjectF12en
dc.subjectF15en
dc.subjectF23en
dc.titleAsymmetric effects of trade and FDI : South America versus Europeen
dc.typeWorking Paperen


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