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Trade Cost and Technology Difference: the Influence of South-South and South-North Agreements on FDI

YU Shun-hong(Zhejiang School of Administration,Hangzhou 311121,China)  
The quantity and quality of FDI inflow differs due to the trade cost and technology after South-South and South-North RTAs are concluded.Based on the knowledge-capital model and the regression model using the data of OECD and ASEAN countries,it is found that South-North RTAs can bring more FDI than South-South.The best choice for developing countries is the South-North RTA.
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