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What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows

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  • Sosa Andrés, Maximiliano
  • Nunnenkamp, Peter
  • Busse, Matthias

Abstract

Non-traditional source countries of FDI play an increasingly important role, notably in developing host countries. This raises the question of whether the location choices differ systematically between traditional and non-traditional source countries. We perform Logit and Poisson Pseudo Maximum Likelihood estimations to assess the determinants of bilateral FDI flows. We find that economic geography variables are more relevant for FDI from nontraditional sources. The risk aversion of non-traditional investors is not consistently weaker than that of traditional investors. Resource abundance and superior technology in the host countries represent minor pull factors of FDI from non-traditional sources. --

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Bibliographic Info

Article provided by Kiel Institute for the World Economy in its journal Economics: The Open-Access, Open-Assessment E-Journal.

Volume (Year): 7 (2013)
Issue (Month): 1 ()
Pages: 1-53

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Handle: RePEc:zbw:ifweej:20131

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Keywords: FDI flows; types of FDI; source-host country pairs; location choices; gravitytype models;

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Cited by:
  1. Hohenleitner, Ingrid & Hillmann, Katja, 2012. "Impact of Benefit Sanctions on Unemployment Outflow - Evidence from German Survey Data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 66055, Verein für Socialpolitik / German Economic Association.
  2. Dirk Christian Dohse & Robert Hassink & Claudia Klaerding, 2012. "Emerging multinationals, international knowledge flows and economic geography: a research agenda," Kiel Working Papers 1776, Kiel Institute for the World Economy.
  3. Peter Nunnenkamp & Maximiliano Sosa Andrés, 2013. "Ownership Choices of Indian Direct Investors: Do FDI Determinants Differ between Joint Ventures and Wholly-owned Subsidiaries?," Kiel Working Papers 1841, Kiel Institute for the World Economy.
  4. Peter Nunnenkamp & Maximiliano Sosa Andrés & Krishna Chaitanya Vadlamannati & Andreas Waldkirch, 2012. "What Drives India’s Outward FDI?," Kiel Working Papers 1800, Kiel Institute for the World Economy.
  5. Kamel ABDELLAH ( GREThA, CNRS, UMR 5113 & ISG, UNIVERSITE DE TUNIS) & Dalila NICET-CHENAF (GREThA, CNRS, UMR 5113) & Eric ROUGIER (GREThA, CNRS, UMR 5113), 2012. "FDI and macroeconomic volatility: A close-up on the source countries," Cahiers du GREThA 2012-21, Groupe de Recherche en Economie Théorique et Appliquée.

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