Migration, FDI, and the Margins of Trade

EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels

Abstract: The present study develops a simple analytically solvable heterogeneous firm model of trade, investment and migration; where foreign direct investment, international trade and labour migration are determined simultaneously. We estimate the theoretical model based on micro data for 4.5 million companies from the OECD countries. Our estimates confirm that entry costs and firm heterogeneity largely determine the flows of foreign direct investment, international trade and labour migration.

Keywords: Heterogeneous firms; foreign direct investment; international trade; labour migration (search for similar items in EconPapers)
JEL-codes: F22 O1 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2001-05-05
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Persistent link: https://EconPapers.repec.org/RePEc:eei:rpaper:eeri_rp_2001_05

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