Economic and Financial Impacts of East-West Trade and FDI
Researchers: Richard Frensch (Osteuropa-Institut), Jan Hanousek (CERGE Prague), Stephan Huber (Osteuropa-Institut und IAAEG, Trier) und Evћen Kočenda (CERGE Prague)
Keywords: Trade and und FDI, European integration, gravity
Funding: Osteuropa-Institut and Grantová agentura České republiky (Czech Science Foundation)
Project duration: July 2010 -
East-West trade and investment flows across Europe have been studied from various perspectives including the trade contribution to economic growth, sectoral specialization, the effects on labor markets etc. A dynamic analysis of the effects of trade and investment on sectoral and corporate levels along with financial effects is an aspect that is missing in the field, and in this project we aim to address these issues. For this, we argue that foreign direct investment (FDI) can be traced as an origin of trade flows. Companies established on the basis of the FDI are very frequently projected and built as primarily export production facilities.
As a fundamental research contribution we will extend gravity model type specification to account for effect on sectoral and corporate levels. Estimations of these extensions with unique real world data will deliver empirical assessment and a dynamic analysis of the effects of trade and investment on sectoral and corporate levels along with financial effects.
Project publications
Frensch, R., European trade in parts and components: searching (for a trade model for searching) for offshoring evidence. Working Paper 280, OEI Regensburg, 2010
Hanousek, J., Kocenda, E., and M. Maurel, Direct and indirect effects of FDI in emerging European markets: a survey and meta-analysis. Forthcoming in Economic Systems, 2011.
Uzagalieva, A., Kocenda, E., and A. Menezes, Technological Imitation and Innovation in New European Union Markets. CESifo Working Paper No. 3039, 2010.