Markusen, James R.; Venables, Anthony J.; Eby Konan, Denise - Institutet för Näringslivsforskning (IFN) - 1996
This paper contributes to research endogenizing multinational firms in general-equilibrium trade models. We attempt to … trade costs are moderate to high. In some cases, foreign investment or trade liberalization leads to a reversal in the … direction of trade. Investment liberalization can also lead to an increase in the volume of trade and produces a strong tendency …