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The determinants of FDI and the impact of the economic crisis on the implementation of RTAs: A static and dynamic gravity model

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Listed author(s):
  • Kahouli, Bassem
  • Maktouf, Samir

Abstract

Foreign Direct Investment has become one of the major challenges for the countries who participated in international economy. It affects the host country by increasing its national income, labor productivity and employment. It also has some spillover effects, including technology transfer, new management and modern production techniques. This work develops a static and dynamic gravity model to test the determinants of FDI between 14 investment partners and 39 host countries during the period 1990–2011 and evaluate the impact of the recent economic crisis on FDI. Our empirical estimates take into account the endogenous nature of the effects of integration and the existence of the dynamic effect.

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Article provided by Elsevier in its journal International Business Review.

Volume (Year): 24 (2015)
Issue (Month): 3 ()
Pages: 518-529

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Handle: RePEc:eee:iburev:v:24:y:2015:i:3:p:518-529
DOI: 10.1016/j.ibusrev.2014.10.009
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Keywords: FDI; GMM estimators; Gravity model; RTAs;

Find related papers by JEL classification:

  • F - International Economics
  • F - International Economics
  • C - Mathematical and Quantitative Methods
  • C - Mathematical and Quantitative Methods

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Cited by:

  1. Ramírez-Alesón, Marisa & Fleta-Asín, Jorge, 2016. "Is the Importance of Location Factors Different Depending on the Degree of Development of the Country?," Journal of International Management, Elsevier, vol. 22(1), pages 29-43.
  2. Kripfganz, Sebastian & Schwarz, Claudia, 2013. "Estimation of Linear Dynamic Panel Data Models with Time-Invariant Regressors," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79756, Verein für Socialpolitik / German Economic Association.
  3. Reddy, Kotapati Srinivasa, 2015. "The impact of the global financial crisis on border-crossing mergers and acquisitions: A continental/industry analysis," MPRA Paper 63563, University Library of Munich, Germany, revised 2015.
  4. Evgenie P. Zharikov & Alla A. Kravchenko & Olesya O. Sergeeva & Victor V. Stetsyuk, 2016. "Econometric Estimation of Bilateral Transboundary Trade between Russia and China," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1068-1071.
  5. Sara Amoroso & Mafini Dosso & Pietro Moncada-Paterno-Castello, 2015. "The impact of skill endowments and collective bargaining on knowledge-intensive greenfield FDI," JRC Working Papers on Corporate R&D and Innovation 2015-08, Joint Research Centre (Seville site).
  6. Ramasamy Murugesan & Murugesan Poovendhan, 2016. "Analysis of factors determining the inward FDI in top seven Indian states from top seven source countries using gravity model," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(3), pages 209-230.
  7. Narendar Rao & K. Reddy, 2015. "The impact of the global financial crisis on cross-border mergers and acquisitions: a continental and industry analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 309-341, December.
  8. Adina DORNEAN & Dumitru-Cristian OANEA, 2015. "Impact Of The Economic Crisis On Fdi In Central And Eastern Europe," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 16, pages 53-68, December.

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