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International trade, foreign direct investment and productivity : an empirical investigation

This dissertation investigates the effects of foreign direct investment (FDI) and international trade on firm level decisions and examines the effect of policy changes on aggregate productivity and welfare in open economies. The first two chapters build an open economy model of FDI and
trade where heterogeneous firms make simultaneous foreign investment and export decisions. The theoretical model is estimated using Indonesian manufacturing data. The estimated model is then used to perform a variety of counterfactual experiments to assess the positive and normative effects of international barriers to trade and FDI. I find that the impact of FDI on aggregate productivity is at least three times the impact of international trade on aggregate productivity.

The third chapter, co-authored with Hiroyuki Kasahara, investigates whether importing intermediate goods improves plant performance. While addressing the issue of simultaneity between productivity shocks and the decision to import intermediates, we estimate the impact of the use of foreign intermediates on plants' productivity using plant-level Chilean manufacturing panel data. We find that by importing foreign intermediates, manufacturing plants can improve productivity. / Thesis (Ph.D, Economics) -- Queen's University, 2008-06-20 10:21:01.069

Identiferoai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:OKQ.1974/1245
Date25 June 2008
CreatorsRodrigue, Joel
ContributorsQueen's University (Kingston, Ont.). Theses (Queen's University (Kingston, Ont.))
Source SetsLibrary and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada
LanguageEnglish, English
Detected LanguageEnglish
TypeThesis
Format897344 bytes, application/pdf
RightsThis publication is made available by the authority of the copyright owner solely for the purpose of private study and research and may not be copied or reproduced except as permitted by the copyright laws without written authority from the copyright owner.
RelationCanadian theses

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