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Agglomeration Effects in South-South FDI

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  • Alessia Amighini
  • Chiara Franco

Abstract

The progressive rise in the amount of South-South FDI flows has inspired a number of studies to account for possible determinants. Using firm-level data on FDI flows from 2003 until 2011, we examine what determines green field FDI among the group of low and middle income countries (South-South FDI), with special regard to the role played by agglomeration economies. We separately consider manufacturing and services sectors. Our main findings confirm the hypotheses according to which both country of origin agglomeration and industry agglomeration are relevant in explaining this type of flows.

Suggested Citation

  • Alessia Amighini & Chiara Franco, 2012. "Agglomeration Effects in South-South FDI," DEGIT Conference Papers c017_032, DEGIT, Dynamics, Economic Growth, and International Trade.
  • Handle: RePEc:deg:conpap:c017_032
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    File URL: http://degit.sam.sdu.dk/papers/degit_17/C017_032.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    FDI location; South-South FDI; agglomeration economies;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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