| Title: |
FDI vs. Exports: Accounting for Differences in Export-Sales Intensities |
| Spanish title: |
Inversión Directa o Exportación: Diferencias de Intensidad |
| Number: |
523 |
| Authors: |
Miguel Ricaurte; Katherine Schmeiser |
| Language: |
English |
| Date: |
August 2009 |
| Abstract: |
Industry level data shows striking differences among sectors in ratios of exports to FDI
sales. We determine what is needed to endogenously generate this pattern of export and
FDI sales. By calibrating a model of monopolistic competitive firms, we find that
tradability of goods is not enough to capture the observed sectoral differences, as is
commonly assumed. We explore variants of the model and show that sector-specific taxes
on multinationals and home bias allow us to replicate these differences. |
| Document: |
dtbc523.pdf (593 Kb) |
Banco Central de Chile