@techreport{oai:ir.ide.go.jp:00037660,
 author = {Oyamada, Kazuhiko and Uchida, Yoko},
 month = {Mar},
 note = {application/pdf, IDP000517_001, To prepare an answer to the question of how a developing country can attract FDI, this paper explored the factors and policies that may help bring FDI into a developing country by utilizing an extended version of the knowledge-capital model. With a special focus on the effects of FTAs/EPAs between market countries and developing countries, simulations with the model revealed the following: (1) Although FTA/EPA generally ends to increase FDI to a developing country, the possibility of improving welfare through increased demand for skilled and unskilled labor becomes higher as the size of the country declines; (2) Because the additional implementation of cost-saving policies to reduce firm-type/trade-link specific fixed costs ends to depreciate the price of skilled labor by saving its input, a developing country, which is extremely scarce in skilled labor, is better off avoiding the additional option; (3) If a country hopes to enjoy larger welfare gains with EPA, efforts to increase skilled labor in the country, such as investing in education, may be beneficial.},
 title = {Is FTA/EPA effective for a developing country to attract FDI? : simulation analysis based on an extended knowledge-capital model},
 year = {2015}
}