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Foreign Direct Investment and Regional Trade Agreements

Foreign Direct Investment and Regional Trade Agreements »

Source: Foreign Direct Investment and Regional Trade Agreements : The Market Size Effect Revisited

Volume/Issue: 2004/206

Series: IMF Working Papers

Author(s): Florence Jaumotte

Publisher: INTERNATIONAL MONETARY FUND

Publication Date: 01 November 2004

ISBN: 9781451874631

Keywords: Regional trade agreements, Market size, Scale economies, fdi, domestic market, direct investment,

The paper investigates whether the market size of a regional trade agreement (RTA) is a determinant of foreign direct investment (FDI) received by countries participating in the RTA. This hypothesis is tested on a...