Sangam: A Confluence of Knowledge Streams

Trade, FDI, and the Organization of Firms

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dc.creator Helpman, Elhanan
dc.date 2019-10-11T12:30:19Z
dc.date 2006
dc.date 2019-10-11T12:30:19Z
dc.date.accessioned 2022-05-18T11:04:04Z
dc.date.available 2022-05-18T11:04:04Z
dc.identifier Helpman, Elhanan. 2006. “Trade, FDI, and the Organization of Firms.” Journal of Economic Literature44 (3): 589–630. https://doi.org/10.1257/jel.44.3.589.
dc.identifier 0022-0515
dc.identifier 1547-1101
dc.identifier 2328-8175
dc.identifier http://nrs.harvard.edu/urn-3:HUL.InstRepos:41534607
dc.identifier 10.1257/jel.44.3.589
dc.identifier.uri http://localhost:8080/xmlui/handle/CUHPOERS/26609
dc.description New developments in the world economy have triggered research designed to better understand the changes in trade and investment patterns, and the reorganization Of production across national borders. Although traditional trade theory has much to offer in explaining parts of this puzzle, other parts required new approaches. Particularly acute has been the need to model alternative form of involvement of business firms in foreign activities because organizational change has been central in the transformation of the world economy. This paper reviews the literature that has emerged from these efforts. The theoretical refinements have focused on the individual firm, studying its choices in response to its own characteristics, the nature of the industry in which it operates, and the opportunities afforded by foreign trade and investment. Important among these choices are organizational features, such as sourcing strategies. But the theory has gone beyond the individual firm, studying the implications of firm behavior for the structure of industries. It provides new explanations for trade structure and patterns of foreign direct investment, both within and across industries, and has identified new sources of comparative advantage.
dc.description Version of Record
dc.format application/pdf
dc.language en_US
dc.publisher American Economic Association
dc.relation Journal of Economic Literature
dc.title Trade, FDI, and the Organization of Firms
dc.type Journal Article


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