Abstract:

The relationship between trade and direct investment, which is one of the main features of globalization are complex and can not be deducted from a purely theoretical analysis. The present paper seeks to lay the analytical foundation that would define the nature of the relationship - in terms of complementary or alternative - between trade and FDI. The purpose of our use of industry database is to explore these issues econometrically while analyzing and decomposing nature of the relationship between FDI and exports, for the manufacturing and non-manufacturing sector.