FY 2014/2015 Research Topic: C-23
Production Patterns of Multinational Firms: Horizontal and Vertical Multinationals with Traded Intermediates
One of the key factors behind the growth in global trade in recent decades is an increase in intermediate input as a result of the development of vertical production networks. It is widely recognized that the formation of production networks has resulted from the expansion of multinational enterprises’ (MNEs) activities. Developing economies have benefitted from the development of vertical production networks since these networks enable them to incorporate an appropriate portion of the production stages. This study aims to clarify the requirements of attracting MNEs to developing countries by using the extension model of Zhang and Markusen  under a numerical general equilibrium framework and to test validity of those requirements empirically.
April 2013 - March 2015