We build a dynamic general equilibrium model with 2 countries, horizontal and vertical multinational activity and endogenous domestic and foreign investment. It is found that horizontal multinational activity always leads to a complementary relationship between domestic and foreign investment....

We build a dynamic general equilibrium model with 2 countries, horizontal and vertical multinational activity and endogenous domestic and foreign investment. It is found that horizontal multinational activity always leads to a complementary relationship between domestic and foreign investment....

Investigates the dynamic welfare effects of exposure to trade in a new trade model. This book uses a new trade model to explore which country-specific conditions give rise to horizontal or vertical multinational activity. It analyzes the role of goods trade and horizontal multinational firms in...