@techreport{NBERw6231,
 title = "Trade versus Investment Liberalization",
 author = "James R. Markusen",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "6231",
 year = "1997",
 month = "October",
 URL = "http://www.nber.org/papers/w6231",
 abstract = {Despite several theoretical contributions and considerable informal empirical evidence" to the contrary, a notion that trade and investment are substitutes persists in trade policy" analysis.  This paper considers the liberalization of commodity trade versus liberalization" allowing direct investment versus the two together.  For a relatively skilled-labor-scarce" economy, I show that trade and investment liberalization are quite different together are in a sense complements.  The intuition may be that direct investment provides such" a country with crucial inputs (knowledge-intensive producer services) without which the" country cannot effectively exploit its abundant factors in certain industries."},
}