The Determining Factors of Foreign Direct Investment in Spain and the rest of the OECD: Lessons for CEECs
This paper – using an estimation of an econometric model with panel data – investigates the determining factors in bilateral direct investment flows between OECD countries (except for the more recently-incorporated former communist countries of Central and Eastern Europe, or CEECs) over the past decade. Although the research seeks to explore the general patterns in OECD countries, it also attempts to detect the possible patterns specific to the Spanish case, which could prove particularly useful in drawing inferences for the CEECs. The findings suggest that international flows of direct investment between developed countries are explained not so much by factor endowment differences as by other variables suggested in Dunning’s ‘ownership-location-internalisation’ (OLI) model.
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