Foreign Direct Investment And Trade: A Generalized Spatial Two Stage Least Squares

Malick  Diarrassouba

Abstract


Within the generalized spatial two stage least squaresframework, this paper test for the relevance of third countryeffects for U.S. outward foreign direct investment (FDI), andalso  analyses  the  relationship  between  Foreign  direct investment  and  trade.  The empirical results indicate the significance of third  country  effects.  Additionally, I  find complementary  relationship  between  foreign  direct investment and trade.


Keywords


Foreign Direct Investment , Exports , Generalized Spatial Two¬stages Least Squares

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References


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