The Impact of the Process of Economic Integration on the Relationships between Foreign Direct Investment (FDI) and Trade: Cases of Japan and U.S. in European Union
Restricted accessResearch articleFirst published online September, 2004
The Impact of the Process of Economic Integration on the Relationships between Foreign Direct Investment (FDI) and Trade: Cases of Japan and U.S. in European Union
In the traditional trade model, FDI and trade were substituting each other because the major objectives of the traditional model were finished goods. However, the introduction of intra-firm trade goods by multinational enterprises (MNEs), and the process of the international economic integration expanded the trade model to embrace the possibility of complementarities between FDI and trade. Accordingly, this study tries to find out the relationships between FDI and trade in the past decades by comparing the FDI and trade records of Japanese and MNEs of the United States.
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