Mukherjee, Arijit; Suetrong, Kullapat - In: Economic Modelling 29 (2012) 5, pp. 1938-1945
While the “proximity-concentration” theory suggests a positive relationship between trade cost and foreign direct investment (FDI), there is ample evidence showing a negative relationship between them. We show that the possibility of exporting back to the home country from a host country,...