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A Simple and Flexible Dynamic Approach to Foreign Direct Investment Growth: The Canada-United States Relationship in the Context of Free Trade

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Foreign Direct Investment, China and the World Economy

Abstract

In the post-war period the world economy has seen the rise and expansion of regional trading blocs and regional economic integration.1 The prime example has been the evolution of the European Union since the early 1950s; also significant has been the creation of the Asia-Pacific Economic Cooperation Area in 1989, and development of the North American free trade area, dating also from 1989. This paper will focus on the Canada-United States relationship. While the intentions of the partners to a free trade agreement are clear in the case of trade, the effect on foreign direct investment (FDI) is ambiguous. The question this paper addresses is that of how the North American free trade agreements have affected US foreign investment behaviour in Canada.

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© 2010 Peter J. Buckley, Jeremy Clegg, Nicolas Torsans and Kevin T. Reilly

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Buckley, P.J., Clegg, J., Forsans, N., Reilly, K.T. (2010). A Simple and Flexible Dynamic Approach to Foreign Direct Investment Growth: The Canada-United States Relationship in the Context of Free Trade. In: Foreign Direct Investment, China and the World Economy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230248328_17

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