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Foreign Direct Investment: The Knowledge‐Capital Model And A Small Country Case

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  • Helga Kristjánsdóttir

Abstract

This research looks at how foreign direct investment (FDI) in a small open economy compares with that of larger countries. I apply several specifications of the knowledge‐capital model to unique FDI data from the isolated country of Iceland, allowing for comparison with previous analysis of larger and similarly open economies. Using this together with other techniques, I seek to explain investment determinants by geography, economic size and skilled labor availability. The results of these analysis show that popular specifications do not accurately predict the effects for a small country case.

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  • Helga Kristjánsdóttir, 2010. "Foreign Direct Investment: The Knowledge‐Capital Model And A Small Country Case," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(5), pages 591-614, November.
    • Handle: RePEc:bla:scotjp:v:57:y:2010:i:5:p:591-614
    DOI: 10.1111/j.1467-9485.2010.00532.x
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    Cited by:

    1. Arup Kumar Chattopadhyay & Debdas Rakshit & Payel Chatterjee & Ananya Paul, 2022. "Trends and Determinants of FDI with Implications of COVID-19 in BRICS," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(1), pages 43-59, January.
    2. Kox, Henk L.M., 2023. "Testing an extended knowledge-capital model of foreign direct investment," MPRA Paper 117266, University Library of Munich, Germany.
    3. Stack, Marie M. & Ravishankar, Geetha & Pentecost, Eric, 2017. "Foreign direct investment in the eastern European countries: Determinants and performance," Structural Change and Economic Dynamics, Elsevier, vol. 41(C), pages 86-97.

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