Modelling FDI based on a spatially augmented gravity model: Evidence for Central and Eastern European Countries
AbstractBased on a spatially augmented gravity model the current paper isolates spatial interrelationships in Foreign Direct Investment (FDI) to Central and Eastern European Countries (CEECs) not only across the destination but also across the origin country dimension of FDI. Results show that: (i) spatial interrelationships across destination countries are present and are consistent with the predom- inance of vertical-complex FDI in total FDI; (ii) spatial correlation across origin countries is given in earlier years of transition, while demonstration and competition effects cancel over the whole sample period; and (iii) agglomeration forces gain in importance for FDI to CEECs.
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Bibliographic InfoPaper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 239.
Length: 34 pages
Date of creation: Apr 2012
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Foreign Direct Investment; Spatial Econometrics; Central and Eastern Europe; Third country effects;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-EUR-2012-05-22 (Microeconomic European Issues)
- NEP-GEO-2012-05-22 (Economic Geography)
- NEP-INT-2012-05-22 (International Trade)
- NEP-TRA-2012-05-22 (Transition Economics)
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