A Note on Foreign Direct Investment and Exports in Vertically Differentiated Industries
7 Pages Posted: 16 Feb 2010
Date Written: January 5, 2010
We examine the FDI versus exports decision of a multiproduct monopolist firm which supplies vertically differentiated products, and show that the proximity-concentration trade-off can generate FDI-export coexistence.
Keywords: FDI, vertical product differentiation, multiproduct monopoly
JEL Classification: F12, F23
Suggested Citation: Suggested Citation