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Foreign Direct Investment and the Single Market.

Abstract:

This Paper extends the theory of multinational corporations, identifying three distinct influences of internal trade liberalization by a group of countries on the level and pattern of inward foreign direct investment (FDI). First, the tariff-jumping motive encourages plant consolidation. Second, the export platform motive favours FDI with only a single union plant relative to exporting, and may induce a firm that has never exported to invest. Finally, reduced internal tariffs increase competi...

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Volume:
3419
Series:
Discussion Papers
Publication date:
2002-01-01
URN:
uuid:6748d0ac-2b38-4022-891a-1864e6e5f280
Local pid:
oai:economics.ouls.ox.ac.uk:11738
Language:
English

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