The determinants of foreign direct investment: An extreme bounds analysis
Eight determining variables of FDI inflows are examined by applying extreme bounds analysis to a cross-sectional sample encompassing data on 140 countries. With GDP per capita serving as the free variable, seven variables are tried as the variables of interest in combination with three other variables. The results reveal that only two variables are robust: exports as a percentage of GDP and telephone lines per 1000 of the population. It is shown that a parsimonious model with a reasonably good predictive power contains the free variable, the two robust variables and two dummies.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shang-Jin Wei, 1997.
"How Taxing is Corruption on International Investors?,"
NBER Working Papers
6030, National Bureau of Economic Research, Inc.
- Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
- Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," William Davidson Institute Working Papers Series 63, William Davidson Institute at the University of Michigan.
- Granger, Clive W. J. & Uhlig, Harald F., 1990.
"Reasonable extreme-bounds analysis,"
Journal of Econometrics,
Elsevier, vol. 44(1-2), pages 159-170.
- Tom Doan, . "EBA: RATS procedure to perform Extreme Bounds Analysis," Statistical Software Components RTS00059, Boston College Department of Economics.
- Clive W. J. Granger & Harald F. Uhlig, 1988. "Reasonable extreme bounds analysis," Discussion Paper / Institute for Empirical Macroeconomics 2, Federal Reserve Bank of Minneapolis.
- Mumtaz Hussain & Oscar Brookins, 2001. "On the determinants of national saving: An extreme-bounds analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 150-174, March.
- Kravis, Irving B. & Lipsey, Robert E., 1982.
"The location of overseas production and production for export by U.S. multinational firms,"
Journal of International Economics,
Elsevier, vol. 12(3-4), pages 201-223, May.
- Irving B. Kravis & Robert E. Lipsey, 1980. "The Location of Overseas Production and Production for Export by U.S. Multinational Firms," NBER Working Papers 0482, National Bureau of Economic Research, Inc.
- Martin, Philippe & Ottaviano, Gianmarco, 1996.
"Growing Locations: Industry Location in a Model of Endogenous Growth,"
CEPR Discussion Papers
1523, C.E.P.R. Discussion Papers.
- Martin, Philippe & I.P. Ottaviano, Gianmarco, 1999. "Growing locations: Industry location in a model of endogenous growth," European Economic Review, Elsevier, vol. 43(2), pages 281-302, February.
- James Love & Francisco Lage-Hidalgo, 2000. "Analysing the determinants of US direct investment in Mexico," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1259-1267.
- Zhao, Laixun, 1998. "The Impact of Foreign Direct Investment on Wages and Employment," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 284-301, April.
- Cheng, Leonard K. & Kwan, Yum K., 2000. "What are the determinants of the location of foreign direct investment? The Chinese experience," Journal of International Economics, Elsevier, vol. 51(2), pages 379-400, August.
- Schneider, Friedrich & Frey, Bruno S., 1985. "Economic and political determinants of foreign direct investment," World Development, Elsevier, vol. 13(2), pages 161-175, February.
- Abdul F. M. Shamsuddin, 1994. "Economic Determinants of Foreign Direct Investment in Less Developed Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(1), pages 41-51.
- Lunn, John, 1980. "Determinants of U.S. direct investment in the E.E.C. : Further evidence," European Economic Review, Elsevier, vol. 13(1), pages 93-101, January.
- Hines, James R, Jr, 1996.
"Altered States: Taxes and the Location of Foreign Direct Investment in America,"
American Economic Review,
American Economic Association, vol. 86(5), pages 1076-94, December.
- James R. Hines Jr., 1993. "Altered States: Taxes and the Location of Foreign Direct Investment in America," NBER Working Papers 4397, National Bureau of Economic Research, Inc.
- Dermot Leahy & Catia Montagna, 1999.
"Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?,"
Dundee Discussion Papers in Economics
097, Economic Studies, University of Dundee.
- Leahy, Dermot & Montagna, Catia, 2000. "Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?," Economic Journal, Royal Economic Society, vol. 110(462), pages C80-92, March.
- Leahy, D. & Montagna, C., 1999. "Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?," Papers 99/15, College Dublin, Department of Political Economy-.
- Alexander Lehmann, 1999. "Country Risks and the Investment Activity of U.S. Multinationals in Developing Countries," IMF Working Papers 99/133, International Monetary Fund.
- Leamer, Edward E & Leonard, Herman B, 1983. "Reporting the Fragility of Regression Estimates," The Review of Economics and Statistics, MIT Press, vol. 65(2), pages 306-17, May.
- Xavier Sala-i-Martin, 1997.
"I just ran four million regressions,"
Economics Working Papers
201, Department of Economics and Business, Universitat Pompeu Fabra.
- Zhao, Laixun, 1995. "Cross-hauling direct foreign investment and unionized oligopoly," European Economic Review, Elsevier, vol. 39(6), pages 1237-1253, June.
- Bengoa, Marta & Sanchez-Robles, Blanca, 2003. "Foreign direct investment, economic freedom and growth: new evidence from Latin America," European Journal of Political Economy, Elsevier, vol. 19(3), pages 529-545, September.
- Chor-Yiu Sin & Wing-Fai Leung, 2001. "Impacts of FDI liberalization on investment inflows," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 253-256.
- Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
- Yang, Jeannie Yih Yun & Groenewold, Nicolaas & Tcha, Moonjoong, 2000. "The Determinants of Foreign Direct Investment in Australia," The Economic Record, The Economic Society of Australia, vol. 76(232), pages 45-54, March.
- Root, Franklin R & Ahmed, Ahmed A, 1979. "Empirical Determinants of Manufacturing Direct Foreign Investment in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 27(4), pages 751-67, July.
- Swenson, Deborah L., 1994. "The impact of U.S. tax reform on foreign direct investment in the United States," Journal of Public Economics, Elsevier, vol. 54(2), pages 243-266, June.
- Gilbert, Christopher L, 1986. "Professor Hendry's Econometric Methodology," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 283-307, August.
- Chakrabarti, Avik, 2001. "The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions," Kyklos, Wiley Blackwell, vol. 54(1), pages 89-113.
- McAleer, Michael & Pagan, Adrian, 1985.
"What Will Take the Con Out of Econometrics?,"
CEPR Discussion Papers
39, C.E.P.R. Discussion Papers.
- Harri Ramcharran, 1999. "Foreign direct investment and country risk: Further empirical evidence," Global Economic Review, Taylor & Francis Journals, vol. 28(3), pages 49-59.
- Ihrig, Jane, 2000. "Multinationals' response to repatriation restrictions," Journal of Economic Dynamics and Control, Elsevier, vol. 24(9), pages 1345-1379, August.
When requesting a correction, please mention this item's handle: RePEc:eee:mulfin:v:16:y:2006:i:2:p:199-211. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.