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The Determinants of Foreign Direct Investment in Services

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  • Bala Ramasamy
  • Matthew Yeung

Abstract

This paper has two main objectives: first, to consider country specific determinants that attract services FDI, and second, to compare the importance of these determinants vis‐à‐vis traditional determinants that attract manufacturing FDI. Using OECD countries as our sample, and 1980 to 2003 as our time period, we consider the determinants of inward FDI in a panel setting. Our results provide empirical evidence to support the view that no new theories may be necessary to explain the determinants of services FDI.

Suggested Citation

  • Bala Ramasamy & Matthew Yeung, 2010. "The Determinants of Foreign Direct Investment in Services," The World Economy, Wiley Blackwell, vol. 33(4), pages 573-596, April.
    • Handle: RePEc:bla:worlde:v:33:y:2010:i:4:p:573-596
    DOI: 10.1111/j.1467-9701.2009.01256.x
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