Multinational sales have grown at high rates over the last two decades, outpacing the remark-able expansion of trade in manufactures. Con-sequently, the trade literature has sought to incorporate the mode of foreign market access into the “new ” trade theory. This literature…
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Economics · Foreign direct investment · International economics · International trade · Monetary economics · Macroeconomics
# Export Versus FDI with Heterogeneous Firms
> OpenAlex Metadata Hub · https://openalex.org/W2099167504
## Bibliographic
- **DOI:** 10.1257/000282804322970814
- **Year:** 2004
- **Citations:** 4067
- **Open Access:** No (closed)
- **License:** —
- **Source:** https://doi.org/10.1257/000282804322970814
## Authors
- Elhanan Helpman
- Marc J. Melitz
- Stephen Yeaple
## Abstract
Multinational sales have grown at high rates over the last two decades, outpacing the remark-able expansion of trade in manufactures. Con-sequently, the trade literature has sought to incorporate the mode of foreign market access into the “new ” trade theory. This literature rec-ognizes that firms can serve foreign buyers through a variety of channels: they can export their products to foreign customers, serve them through foreign subsidiaries, or license foreign firms to produce their products. Our work focuses on the firm’s choice be-tween exports and “horizontal ” foreign direct investment (FDI). Horizontal FDI refers to an investment in a foreign production facility that
## Keywords
Economics, Foreign direct investment, International economics, International trade, Monetary economics, Macroeconomics
## Concepts
- Economics
- Foreign direct investment
- International economics
- International trade
- Monetary economics
- Macroeconomics
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*Metadata only — full text not imported unless Open Access license permits.*
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Tóm lược học thuật (đã diễn giải): Multinational sales have grown at high rates over the last two decades, outpacing the remark-able expansion of trade in manufactures. Con-sequently, the trade literature has sought to incorporate the mode of foreign market access into the “new ” trade theory. This literature rec-ognizes that firms can serve foreign buyers through a variety of channels: they can export their products to foreign customers, serve them through foreign subsidiaries, or license foreign firms to produce their products. Our work focuses on the firm’s choice be-tween exports and “horizontal ” foreign direct investment (FDI). Horizontal FDI refers to an investment in a foreign production facility that
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1. Multinational sales have grown at high rates over the last two decades, outpacing the remark-able expansion of trade in manufactures.
2. Con-sequently, the trade literature has sought to incorporate the mode of foreign market access into the “new ” trade theory.
3. This literature rec-ognizes that firms can serve foreign buyers through a variety of channels: they can export their products to foreign customers, serve them through foreign subsidiaries, or license foreign firms to produce their products.
4. Our work focuses on the firm’s choice be-tween exports and “horizontal ” foreign direct investment (FDI).
5. Horizontal FDI refers to an investment in a foreign production facility that
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