Mukherjee, Arijit; Suetrong, Kullapat - 2006
Recent evidences show the co-existence of lower trade cost and higher amount of foreign direct investment (FDI), which … country markets are important to the foreign firm, lower trade cost may increase FDI if the foreign and the host country firms … differ in technologies. Whether lower trade cost increases welfare is ambiguous, and depends on its effects on FDI. We also …