Pontes, José Pedro2024-04-112024-04-112006Pontes, José Pedro .(2006). “A non-monotonic relationship between FDI and trade”, Dresden Discussion Paper Series in Economics: No. 05/06, Technische Universität Dresden, in ECONSTOR at https://hdl.handle.net/10419/22732 . (Search PDF in 2024).0945-4829http://hdl.handle.net/10400.5/30724This paper presents a non-monotonic relationship between foreign direct investment and trade based on the idea that, although FDI eliminates trade costs on the final good, the investing firm has to bear increased trade costs on an intermediate good.engForeign Direct InvestmentTradeTheory of LocationA non-monotonic relationship between FDI and tradeworking paper