Export Versus FDI and the Communication of Complex Information

摘要: Abstract Traditional proximity-concentration models of the decision to serve foreign markets through exports or FDI sales tend overemphasize physical transport costs and market size while underemphasizing cost transmitting information. I augment those with importance interacting customers communicating complex information within firms use these characteristics predict location production. Goods services requiring direct communication consumers are more likely be produced in destination market. Activities firm occur at multinational's headquarters for export, especially when has weak institutions. These predictions tested using firm-level data from Bureau Economic Analysis US Direct Investment Abroad Benchmark Survey Multinationals combined task-level Department Labor's Occupational Information Network. The approach developed this paper performs well both manufacturing service industries is robust a variety specifications.