This Paper estimates the cross-price elasticity of exports with respect to investment costs for bilateral relations between 36 countries. We show that the effect of reducing foreign direct investment costs on exports depends on country characteristics and trade costs as predicted by the Markusen...

This paper explores the relationship between the location of production and the trade performance of eleven OECD countries since 1971. The paper augments a standard export demand model, which includes relative prices, market size, and measures of relative innovation, with indicators of both...

This paper attempts to implement empirically a Schumpeterian model of international trade. After briefly discussing the literature on trade and technology, we formulate a model in which 'real' factors such as R&D expenditures, investment and wage costs have an impact on bilateral trade flows...

This paper tests an empirical model of the determinants of bilateral OECD trade, with particular emphasis on the role of innovation. Variation in the relationship across countries and sectors is analysed; two innovation proxies and actual data on innovations are used. A positive relationship is...