Engemann, Martina; Lindemann, Henrike - 2013
. This pattern of vertical specialization does not only affect trade between countries but it is also of importance for … foreign direct investment (FDI). In this paper, we therefore adopt the idea of Kremer (1993) and Costinot et al. (2011) of a … sequential production process which is subject to mistakes to the theory of FDI. Using firm-level panel data on German outward …