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Herding in foreign direct investment

Author

Listed:
  • Levis, Mario
  • Muradoğlu, Yaz Gulnur
  • Vasileva, Kristina

Abstract

This paper, to our knowledge, is the first to examine herding in foreign direct investment (FDI). We investigate it from two perspectives, first the number of countries investing in the host country and then the dollar volumes of those investments. Our results provide strong evidence of herding in FDI. We also show herding in the divestures of these investors. We show that herding in FDI is related to host country characteristics and governance parameters.

Suggested Citation

  • Levis, Mario & Muradoğlu, Yaz Gulnur & Vasileva, Kristina, 2023. "Herding in foreign direct investment," International Review of Financial Analysis, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:finana:v:86:y:2023:i:c:s1057521923000194
    DOI: 10.1016/j.irfa.2023.102503
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