Publication: Do Deep Trade Agreements Boost Vertical FDI?
Date
2016-04-18
ISSN
Published
2016-04-18
Author(s)
Abstract
An increasing number of preferential
trade agreements (PTAs) and the rise of offshore production
are distinctive features of the modern world economy.
Exploiting the World Trade Organization (WTO) database on
the content of deep trade agreements, the authors build on
the existing literature to investigate whether deep trade
agreements between countries are related to vertical foreign
direct investment (FDI). Specifically, the authors show that
deeper trade agreements increase vertical FDI measured with
a proxy constructed in Osnago, Rocha, and Ruta with data on
foreign firm ownership and subsidiaries’ revenues available
in the ORBIS database.
Citation
“Osnago, Alberto; Rocha, Nadia; Ruta, Michele. 2016. Do Deep Trade Agreements Boost Vertical FDI?. © Published by Oxford University Press on behalf of the World Bank. http://openknowledge.worldbank.org/handle/10986/32237 License: CC BY-NC-ND 3.0 IGO.”