[The purpose of this paper is to present a simple model, based on profit-maximizing behavior, that can be used to derive estimable equations for U.S. foreign direct investment in manufacturing. Our estimation of foreign-investment equations requires estimates of production functions for U.S. manufacturing subsidiaries abroad. Specifically, I estimate the production function to be a constant-returns-to-scale, homogeneous, transcendental logarithmic function. I also present evidence in the form of my estimated foreign-direct-investment equation that domestic and foreign markets may be imperfectly competitive.]

The purpose of this paper is to analyze and provide empirical evidence regarding the regulation of international trade flows. Our goal is to provide an explanation of the changes in the interindustry pattern of trade restrictions which emerged from the Kennedy Round of tariff negotiations. The principal conclusion of the analysis is that the pattern of protection which resulted from the Kennedy Round was shaped to minimize the domestic political disruption resulting from liberalization. Industries which faced significant import threats and whose characteristics enhanced their potential political influence were able to maintain tariff protection in the face of overall liberalization. The potential impact of the agreed-upon tariff reductions was partially undermined by the introduction of offsetting nontariff trade barriers (NTBs). In addition, NTBs were introduced systematically in industries that were becom

This paper provides an empirical analysis of the determinants of intraindustry trade. The authors demonstrat that two-way trade flows occur where conditions are favorable to international specialization consistent with the Stigler-Williamson analysis of the division of labor. The results are inconsistent wit h the prevailing product differentiation-cum-scale economies model of intraindustry trade. In addition, the authors show that intraindustr y trade has a significant impact on protectionist pressures. Exports of closely related products have the effect of mitigating the tariff- raising effects that imports would otherwise exert.