Authors:

  • Pol Antras

Excerpt

Regional Trade Integration and Multinational Firm Strategies. Pol Antras, C. Fritz Foley, April 2009, Book Chapter. "This paper analyzes the effects of the formation of a regional trade agreement on the level and nature of multinational firm activity. We examine aggregate data that captures the response of U.S. multinational firms to the formation of the ASEAN free trade agreement. Observed patterns guide the development of a model in which heterogeneous firms from a source country decide how to serve two foreign markets. Following a reduction in tariffs on trade between the two foreign countries, the model predicts growth in the number of..." Link