dc.contributor.author | ALLUB, Lian | |
dc.date.accessioned | 2015-07-28T12:46:15Z | |
dc.date.available | 2015-07-28T12:46:15Z | |
dc.date.issued | 2015 | |
dc.identifier.issn | 1830-7728 | |
dc.identifier.uri | https://hdl.handle.net/1814/36615 | |
dc.description.abstract | The 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.mimetype | application/pdf | en |
dc.language.iso | en | en |
dc.relation.ispartofseries | EUI MWP | en |
dc.relation.ispartofseries | 2015/16 | en |
dc.rights | info:eu-repo/semantics/openAccess | en |
dc.subject | Trade | en |
dc.subject | Multinational production | en |
dc.subject | Bridge multinational production | en |
dc.subject | South America | en |
dc.subject | Europe | en |
dc.subject | F12 | en |
dc.subject | F15 | en |
dc.subject | F23 | en |
dc.title | Asymmetric effects of trade and FDI : South America versus Europe | en |
dc.type | Working Paper | en |