Intermediary Products: FDI Strategies, Imports, Exports, and Trade Balances in Developed Economies

Has the relationship between the dominant investment motives of multinational enterprises ( MNEs ) and national trade balances, imports, and exports changed over time? A 1996 study hypothesized and found that the MNE market versus resource seeking investment motives in developed countries ( DCs ) resulted in different aggregate impacts on national trade balances, imports, and exports. In this study, we ask whether the increased use of...