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What Drives Sector Allocation of Foreign Direct Investment in Iceland?

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  • Helga Kristjánsdóttir

    (University of Iceland)

Abstract

The objective of this paper is to examine how the driving forces of investment in a small country like Iceland differ from those in larger countries. Special attention is given to the dominating investment sector in Iceland due to its resource intensity. Estimates are based on 1989-1999 panel data on foreign direct investment in various sectors. This may help explain why the investment pattern in Iceland differs from the general case.

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File URL: http://www.econ.ku.dk/epru/files/wp/wp-05-08.pdf
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Bibliographic Info

Paper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 05-08.

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Length: 41 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:kud:epruwp:05-08

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Keywords: foreign direct investment; multinational corporations;

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  1. Bruce A. Blonigen & Ronald B. Davies & Keith Head, 2002. "Estimating The Knowledge-Capital Model of the Multinational Enterprise: Comment," University of Oregon Economics Department Working Papers 2002-13, University of Oregon Economics Department, revised 01 Mar 2002.
  2. World Bank, 2002. "World Development Indicators 2002," World Bank Publications, The World Bank, number 13921, October.
  3. David L. Carr & James R. Markusen & Keith E. Maskus, 2003. "Estimating the Knowledge-Capital Model of the Multinational Enterprise: Reply," American Economic Review, American Economic Association, vol. 93(3), pages 995-1001, June.
  4. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
  5. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 451-71, June.
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