Effects of regional integration on FDI: An empirical approach
AbstractThis study uses an augmented gravity model to capture the effect of regional economic integration on Foreign Direct Investment (FDI) flows in the cases of the EU, NAFTA, MERCOSUR, and ASEAN. Three important conclusions emerge: (i) regional integration has had a positive and significant effect on FDI, which is a combination of investment creation and diversion; (ii) investment diversion does occur in a significant number of cases, and hence it is a legitimate cause for concern, especially among developing countries that are not part of a regional grouping with at least one developed country; and (iii) FDI acts as a substitute for trade in a significant number of cases, although in some cases, it complements trade.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Asian Economics.
Volume (Year): 19 (2008)
Issue (Month): 5-6 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/asieco
Foreign investment Trade;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baldwin, Richard & Seghezza, Elena, 1996.
"Trade-induced Investment-led Growth,"
CEPR Discussion Papers
1420, C.E.P.R. Discussion Papers.
- Richard E. Baldwin & Elena Seghezza, 1996.
"Testing for Trade-Induced Investment-Led Growth,"
NBER Working Papers
5416, National Bureau of Economic Research, Inc.
- Caroline L. Freund & John McLaren, 1999. "On the dynamics of trade diversion: evidence from four trade blocs," International Finance Discussion Papers 637, Board of Governors of the Federal Reserve System (U.S.).
- John H. Dunning & Peter Robson, 1987. "Multinational Corporate Integration and Regional Economic Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 26(2), pages 103-125, December.
- Magnus Blomstrom & Ari Kokko, 1997.
"Regional Integration and Foreign Direct Investment,"
NBER Working Papers
6019, National Bureau of Economic Research, Inc.
- Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," Working Paper Series in Economics and Finance 172, Stockholm School of Economics.
- Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," CEPR Discussion Papers 1659, C.E.P.R. Discussion Papers.
- Bassem Kahouli & Anis Omri & Anissa Chaibi, 2014. "Environmental Regulations, Trade, and Foreign Direct Investment: Evidence from Gravity Equations," Working Papers 2014-189, Department of Research, Ipag Business School.
- Cuyvers, Ludo & Soeng, Reth & Plasmans, Joseph & Van Den Bulcke, Daniel, 2011. "Determinants of foreign direct investment in Cambodia," Journal of Asian Economics, Elsevier, vol. 22(3), pages 222-234, June.
- Sudsawasd, Sasatra, 2010. "An empirical assessment of the relationship between competition policy and investment," Journal of Asian Economics, Elsevier, vol. 21(5), pages 466-475, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.