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 WTO database on the content of deep trade agreements, we build on the existing literature to investigate whether deep trade agreements between countries are related to vertical foreign direct investment (FDI). Specifically, we show that deeper trade agreements increase vertical FDI measured with a proxy constructed in Osnago, Rocha and Ruta (2015) with data on foreign firm ownership and subsidiaries’ revenues available in the ORBIS database.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
