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Understanding bilateral FDI flows in developing Asia

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  • Rabin Hattari
  • Ramkishen S. Rajan

Abstract

Unlike trade flows, there has been little to no detailed examination of foreign direct investment (FDI) flows between Asian economies. This paper uses bilateral FDI flows data to investigate trends in intra-Asian FDI flows over the period 1990-2005. It employs an augmented gravity model to identify the main determinants of intra-Asian FDI flows. Possible drivers of FDI flows, including transactional and informational distance (proxied by distance), real sector variables, financial variables and quality of institutions are examined. Copyright © 2009 The Authors. Journal compilation © 2009 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd..

Suggested Citation

  • Rabin Hattari & Ramkishen S. Rajan, 2009. "Understanding bilateral FDI flows in developing Asia," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 23(2), pages 73-93, November.
  • Handle: RePEc:bla:apacel:v:23:y:2009:i:2:p:73-93
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    File URL: http://hdl.handle.net/10.1111/j.1467-8411.2009.01232.x
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    References listed on IDEAS

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    Cited by:

    1. Lipsey, Robert E. & Sjöholm, Fredrik, 2011. "South–South FDI and Development in East Asia," Asian Development Review, Asian Development Bank, vol. 28(2), pages 11-31.
    2. Nikolaos Antonakakis & Gabriele Tondl, 2011. "Do determinants of FDI to developing countries differ among OECD investors? Insights from Bayesian Model Averaging," FIW Working Paper series 076, FIW.
    3. Hattari, Rabin & S. Rajan, Ramkishen, 2011. "How Different are FDI and FPI Flows?: Distance and Capital Market Integration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 499-525.
    4. Spyros Arvanitis & Heinz Hollenstein & Tobias Stucki, 2015. "The Characteristics of FDI Activities Located in Different Host Regions – A Study Based on Firm-Level Data," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 151(IV), pages 261-298, December.
    5. repec:taf:oaefxx:v:3:y:2015:i:1:p:1095851 is not listed on IDEAS
    6. Metaxas, Theodore & Kechagia, Polyxeni, 2012. "F.D.I. through the imitation procedure The case of China: A Note," MPRA Paper 40886, University Library of Munich, Germany.
    7. Dilip K Das, 2014. "The Role of China in Asia's Evolution to Global Economic Prominence," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(1), pages 216-229, January.
    8. repec:bla:glopol:v:7:y:2016:i:4:p:510-520 is not listed on IDEAS
    9. Garrett, Jinzhuo Z., 2016. "Explaining asymmetries in bilateral FDI flows," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 155-171.
    10. Pat McAllister & Anupam Nanda, 2016. "Does Real Estate Defy Gravity? An Analysis of Foreign Real Estate Investment Flows," Review of International Economics, Wiley Blackwell, vol. 24(5), pages 924-948, November.
    11. Cavoli, Tony, 2014. "Substitutes or complements? The interactions between components of capital inflows for Asia," Journal of Asian Economics, Elsevier, vol. 31, pages 32-41.
    12. Sharvesh Digumber & Hemavadi Soondram & Bhavish Jugurnath, 2017. "Tax Policy and Foreign Direct Investment: Empirical Evidence from Mauritius," International Business Research, Canadian Center of Science and Education, vol. 10(3), pages 42-56, March.

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