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Is foreign direct investment attracted to 'knowledge creators'?

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  • Catherine Co
  • John List

Abstract

The effect of 'knowledge creators' on location patterns of new foreign plants entering the USA from 1986 to 1993 is analysed. The empirical results from a conditional logit model suggest a link exists between knowledge bases, measured by patent counts, and the location decisions of foreign plants. In the limit, these results imply that a 1% increase in patent counts is associated with an increase in the probability of attracting a new foreign plant by as much as 1.874%.

Suggested Citation

  • Catherine Co & John List, 2004. "Is foreign direct investment attracted to 'knowledge creators'?," Applied Economics, Taylor & Francis Journals, vol. 36(11), pages 1143-1149.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1143-1149
    DOI: 10.1080/0003684042000176810
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    References listed on IDEAS

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    Cited by:

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    2. Chih‐Hai Yang & Yi‐Yin Wu & Hui‐Lin Lin, 2010. "Outward Investment To China And Local Innovation Of Taiwanese Manufacturing Firms," The Japanese Economic Review, Japanese Economic Association, vol. 61(4), pages 538-557, December.
    3. Trifkovic, Neda, 2015. "Vertical Coordination and Aquaculture Farm Performance: The Case of Catfish Sector in Vietnam," 2015 Conference, August 9-14, 2015, Milan, Italy 211930, International Association of Agricultural Economists.
    4. Samina Sabir & Ahsan Khan, 2018. "Impact of Political Stability and Human Capital on Foreign Direct Investment in East Asia & Pacific and South Asian Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(3), pages 245-256, September.
    5. Mahony, Greg & Sadleir, Chris, 2011. "Metagovernance and the Role of Cultural Norms in the Regulation of Foreign Direct Investment: Trans-Tasman FDI Regimes," Working Paper Series 4082, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    6. repec:vuw:vuwscr:19188 is not listed on IDEAS
    7. Imad Moosa, 2009. "The determinants of foreign direct investment in MENA countries: an extreme bounds analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1559-1563.
    8. Yeabsley, John & Nixon, Chris, 2017. "Is peak globalisation upon us? Globalisation is much more than trade in goods," NZIER Working Paper 2017/1, New Zealand Institute of Economic Research.
    9. Sriyalatha Kumarasinghe & Yasuo Hoshino, 2009. "Entry Mode Strategies and Performance of Japanese MNCs in Australia and New Zealand: the Role of Japanese Employees," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 1(1), pages 87105-87105, December.
    10. Mahony, Greg & Sadleir, Chris, 2011. "Metagovernance and the Role of Cultural Norms in the Regulation of Foreign Direct Investment: Trans-Tasman FDI Regimes," Working Paper Series 19188, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    11. Theodore H. Moran, 2015. "The Role of Industrial Policy as a Development Tool: New Evidence from the Globalization of Trade-and-Investment," Policy Papers 71, Center for Global Development.
    12. Huilin Lin & Ryh-Song Yeh, 2005. "The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry," Applied Economics, Taylor & Francis Journals, vol. 37(15), pages 1789-1799.

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