This paper quantifies the relationships between deep trade liberalization and foreign direct investment. To this end, it focuses on the effects of deep trade agreements. The analysis relies on a structural framework that simultaneously enables (i) estimating the direct impact of deep trade...

This paper examines the complementarity between international trade and investment policies. A simple two country model demonstrates that export-platform FDI induces unilateral tariff liberalization by the FDI-source country, suggesting that international capital mobility may substitute...

We quantify the relationships between deep trade liberalization and foreign direct investment (FDI). To this end, we focus on the effects of Deep Trade Agreements (DTAs), and we rely on a structural framework that simultaneously enables us to (i) estimate the direct impact of DTAs on FDI, (ii)...