Arbeitspapier

Deep Trade Agreements and FDI in Partial and General Equilibrium: A Structural Estimation Framework

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) translate the partial DTA estimates into general equilibrium effects on FDI; and (iii) obtain partial DTA effects on trade and quantify the impact of DTAs on FDI through trade. We obtain sizable, positive, and statistically significant estimates of the effects of DTAs on both trade and FDI. A counterfactual analysis suggests that, in combination through direct and indirect channels, DTAs have contributed to a large but very asymmetric increase in inward vs. outward FDI.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 9985

Klassifikation
Wirtschaft
Trade: General
Economic Growth of Open Economies
Economic Growth and Aggregate Productivity: General
Thema
foreign direct investment (FDI)
trade liberalization
deep trade agreements

Ereignis
Geistige Schöpfung
(wer)
Larch, Mario
Yotov, Yoto V.
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Larch, Mario
  • Yotov, Yoto V.
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2022

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