• Business
  • Published 2009

Intra-lndustry Foreign Direct Investment

  title={Intra-lndustry Foreign Direct Investment},
  author={Laura Alfaro and Andrew Charlton},
In this paper, we use a unique firm-level dataset to characterize global patterns of multinational activity. Traditionally, the literature has distinguished between two forms of, and motivations for, multinational firms locating activities abroad. "Horizontal" foreign investment is understood to mean situating production facilities so as to avoid trade costs (James R. Markusen 1984; S. Lael Brainard 1993) and "vertical" investment represents firms' attempts to take advantage of cross-border… CONTINUE READING


Publications citing this paper.