http://www.tradediversion.net/archives/2009/03/offshoring-to-your-next-door-neighbor.html Commentary on development, globalization, and trade by Jonathan Dingel Tue, 07 Feb 2012 12:16:24 -0800 http://wordpress.org/?v=2.8 hourly 1 http://www.tradediversion.net/archives/2009/03/offshoring-to-your-next-door-neighbor.html/comment-page-1#comment-56212 Mi Dai Wed, 18 May 2011 21:58:19 +0000 http://www.tradediversion.net/?p=1153#comment-56212 interesting. Seems the relation between proximity and FDI value should be different for horizontal FDI and vertical FDI? The main incentive to conduct horizontal FDI is to save trade cost so FDI should decrease with proximity. In Figure 1 I do find some developed countries, where horizontal FDI from the U.S. firms should dominate. a little bit puzzling if what the author captures here is horizontal FDI instead of vertical ones. interesting. Seems the relation between proximity and FDI value should be different for horizontal FDI and vertical FDI? The main incentive to conduct horizontal FDI is to save trade cost so FDI should decrease with proximity. In Figure 1 I do find some developed countries, where horizontal FDI from the U.S. firms should dominate. a little bit puzzling if what the author captures here is horizontal FDI instead of vertical ones.

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