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Bilateral foreign direct investment in forest industry between the U.S. and Canada

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  • Nagubadi, Rao V.
  • Zhang, Daowei
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    Abstract

    In this study we examine the trends and various factors influencing bilateral foreign direct investment (FDI) in the U.S. and Canadian forest industry between 1989 and 2008. Using panel data analysis methods, we find that bilateral FDI is positively influenced by depreciation of host country's real exchange rates and exchange rate volatility, and home country's forest product imports and exports and round wood production, and negatively by home country's GDP, current outward FDI position in the rest of the world, and current domestic capital expenditure has no effect on the FDI in the forest industry. These results imply that both imports and exports are complementary to outward FDI and that bilateral FDI is a substitute of FDI to the rest of the word.

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    Bibliographic Info

    Article provided by Elsevier in its journal Forest Policy and Economics.

    Volume (Year): 13 (2011)
    Issue (Month): 5 (June)
    Pages: 338-344

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    Handle: RePEc:eee:forpol:v:13:y:2011:i:5:p:338-344

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    Web page: http://www.elsevier.com/locate/forpol

    Related research

    Keywords: Foreign direct investment Forest products trade Real exchange rate Exchange rate volatility Domestic capital expenditure;

    References

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    Cited by:
    1. Zhang, Yijing & Toppinen, Anne & Uusivuori, Jussi, 2014. "Internationalization of the forest products industry: A synthesis of literature and implications for future research," Forest Policy and Economics, Elsevier, vol. 38(C), pages 8-16.

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