Review of World Economics

, Volume 131, Issue 4, pp 737–747 | Cite as

Trade effects of foreign direct investment: Evidence for Taiwan with four ASEAN countries

  • An-loh Lin


Trade Effects of Foreign Direct Investment: Evidence for Taiwan with Four ASEAN Countries. —This paper examines the trade effects of foreign direct investment (FDI) between Taiwan and each of the following four ASEAN countries: Indonesia, Malaysia, the Philippines, and Thailand. Regression results show that Taiwan's outward FDI has a significant positive effect on exports to and imports from the host country, whereas no such effects were consistently found for inward FDI from the same country.



Die Auswirkungen ausländischer Direktinvestitionen auf den Auβenhandel: Befunde für Taiwan und vier ASEAN-Länder. —Der Verfasser untersucht die Wirkungen auf den Handel, die von ausländischen Direktinvestitionen zwischen Taiwan und jedem der folgenden vier ASEAN-Länder ausgehen: Indonesien, Malaysia, die Philippinen und Thailand. Regressionsergebnisse zeigen, daβ taiwanesische Direktinvestitionen in den vier Ländern eine signifikante positive Wirkung auf Exporte in das Gastland und auf Importe aus diesem Land haben, während durchweg keine solchen Wirkungen bei Direktinvestitionen des Gastlandes in Taiwan festgestellt wurden.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Adler, M., and G.V.G. Stevens (1974). The Trade Effects of Direct Investment.Journal of Finance, Vol. 29, pp. 655–676.CrossRefGoogle Scholar
  2. Chen, T. (1992). Taiwan's Direct Foreign Investment: Patterns and Effects on Trade. 1992 Proceedings of Kyushu University International Symposium on which Direction the Asia-Pacific Is Moving Towards, pp. 240–272. Fukuoka: Kyushu University, Japan.Google Scholar
  3. {iaIMF} (various issues).Direction of Trade Statistics. Washington, D.C.: International Monetary Fund.Google Scholar
  4. (various issues).International Financial Statistics. Washington, D.C.: International Monetary Fund.Google Scholar
  5. Kojima, K. (1973). A Macroeconomic Approach to Foreign Direct Investment.Hitotsubashi Journal of Economics, Vol. 14, pp. 1–21.Google Scholar
  6. — (1982). Macroeconomic Versus International Business Approach to Direct Foreign Investment.Hitotsubashi Journal of Economics, Vol. 23, pp. 1–19.Google Scholar
  7. Lin, A., W. Lien, and H. Lai (1994).An Econometric Analysis of Taiwan's Foreign Direct Investment. Taipei: Chung-Hua Institution for Economic Research.Google Scholar
  8. Lipsey, R. E., and M.Y Weiss (1981). Foreign Production and Exports in Manufacturing Industries.Review of Economics and Statistics, Vol. 63, pp. 488–494.CrossRefGoogle Scholar
  9. Markusen, J. R. (1983). Factor Movements and Commodity Trade as Complements.Journal of International Economics, Vol. 14, pp. 341–356.CrossRefGoogle Scholar
  10. Mundeil, R. A. (1957). International Trade and Factor Mobility.American Economic Review, Vol. 47, pp. 321–335.Google Scholar
  11. Ozawa, T. (1971).Transfer of Technology from Japan to Developing Countries. New York: United Nations.Google Scholar
  12. ROC (Republic of China) (1993 a).Monthly Statistics of Exports and Imports. Taipei: Department of Statistics, Ministry of Finance, Republic of China.Google Scholar
  13. — (1993b).Taiwan Statistical Data Book. Taipei: Council for Economic Planning and Development, Republic of China.Google Scholar
  14. — (1993c).Statistics on Overseas Chinese and Foreign Investment, Technical Cooperation, Outward Investment, and Outward Technical Cooperation. Taipei: Investment Commission, Ministry of Economic Affairs, Republic of China.Google Scholar
  15. Schmitz, A., and P. Helmberger (1970). Factor Mobility and International Trade: The Case of Complementarity.American Economic Review, Vol. 60, pp. 761–767.Google Scholar

Copyright information

© Institut fur Weltwirtschaft an der Universitat Kiel 1995

Authors and Affiliations

  • An-loh Lin

There are no affiliations available

Personalised recommendations