The impact of foreign direct investment on international trade

John Cantwell, C. Bellak

Research output: Contribution to journalReview article

2 Citations (Scopus)

Abstract

The article reviews theoretical approaches and empirical results of the impact of foreign direct investment (FDI) on trade. Conventional trade theory suggests either trade creating or trade replacing effects. Resource-based, local market-oriented and internationally integrated investments are distinguished, with particular reference to affiliate learning and technological upgrading. The article concludes that, with the growth of international trade controlled by multinational companies (MNCs) and of internationally integrated intra-MNC networks, there is a steadily increasing complementarity between FDI and international trade.

Original languageEnglish (US)
Pages (from-to)120-127
Number of pages8
JournalJournal of International Relations and Development
Volume3
Issue number2
StatePublished - Jan 1 2000
Externally publishedYes

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foreign direct investment
international trade
direct investment
world trade
foreign investment
complementarity
market
resources
learning
resource

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development
  • Political Science and International Relations

Cite this

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The impact of foreign direct investment on international trade. / Cantwell, John; Bellak, C.

In: Journal of International Relations and Development, Vol. 3, No. 2, 01.01.2000, p. 120-127.

Research output: Contribution to journalReview article

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