Why are trade agreements more attractive in the presence of foreign direct investment?

Arbeitspapier

This paper argues that interests of nationals and owners of home-based foreign capital in the formation of a Trade Agreements (TA) are not antagonistic, except under rather particular assumptions on initial tariffs among potential members. Further, if initial tariffs are endogenously determined through an industry-lobbying process, then TA that would have been immiserising in the absence of Foreign Direct Investment (FDI), may be welfare-enhancing in the presence of foreign-owned firms. The rationale is linked to the effect that the entry of FDI has on the pre-TA tariff, through contributions to the incumbent government. These results may help explain recent integration programs between developed and developing countries.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: WTO Staff Working Paper ; No. ERAD-98-03

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Integration ; Multinational Firms; International Business
• Thema: Trade Agreement ; Foreign Direct ; Political Economy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Olarreaga, Marcelo
• Ereignis: Veröffentlichung
• (wer): World Trade Organization (WTO)
• (wo): Geneva
• (wann): 1998

Weitere Informationen

• DOI: doi:10.30875/ede7ca61-en
• Handle: http://hdl.handle.net/10419/90672
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ