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A REVIEW OF EMPIRICAL STUDIES ON FOREIGN DIRECT INVESTMENT AND TRADE

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Abstract (2. Language): 
In the first section, this article reviews the empirical evidence on the comparative behaviour of Japanese and US subsidiaries as well as the comparative behaviour of foreign-owned and locally-owned firms in developing countries. The next section reviews the long run impacts of Foreign Direct Investment (FDI) inflows from Japan and the US as well as the relationship between FDI AND trade in general. This study found that there are differences between Japanese and US subsidiaries and that FDI contributes the trade performance of host countries.
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