| Summary: | 碩士 === 逢甲大學 === 國際經營與貿易學系 === 106 === This paper researches the effect of Horizontal and Vertical Direct Investment (HFDI and VFDI) on home country international trade including exports, imports, net exports. Using Country-level data including 12 different United States’ manufacturing and service sectors whose affiliates are located in 20 different countries from 2009 to 2014, we find a complementary relationship between two types of Foreign Direct Investment (FDI) and home country international trade. In the result, a positive and statistically significant correlation of HFDI and VFDI with home trade activity is found. In this case, VFDI has estimated a greater impact on trade than HFDI. We also have a conclusion that HFDI is not an alternative of export, other home countries can prefer using horizontal oriented FDI to enhance their balance trade.
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