Foreign Direct Investment in Developed Economies: A Comparison between European and non - European Countries
We analyse the determinants of foreign direct investment (FDI) by multinational corporations (MNCs) in developed economies. We compare between EU and non-EU countries, in the context of an estimated equation derived from economic theory, which compares the main demand and supply-side determinants of FDI. We contribute to the literature in three ways. First, by employing different proxies for demand and supply-side factors. Second, by comparing between European and non-European developed countries. Third, by testing for the relative importance of total factor productivity (TFP) as a determinant of FDI. Our results are in line with theoretical predictions, but point to the importance of TFP as the determinant par excellence of FDI in developed countries. They also highlight differences even within developed European and non-European counties.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||2009|
|Contact details of provider:|| Postal: Whitaker Square, Sir John Rogerson's Quay, Dublin 2|
Phone: (353-1) 863 2000
Fax: (353-1) 863 2100
Web page: http://www.esri.ie
More information through EDIRC
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.:
- Altzinger, Wilfried, 1998.
"Austria's foreign direct investment in Central and Eastern Europe. "supply based" or "market driven"?,"
Department of Economics Working Paper Series
1566, WU Vienna University of Economics and Business.
- Wilfried Altzinger, 1998. "Austria's Foreign Direct Investment in Central and Eastern Europe: 'Supply Based' or 'Market Driven'?," Department of Economics Working Papers wuwp057, Vienna University of Economics and Business, Department of Economics.
- David Hendry & Hans-Martin Krolzig, 2000.
"Computer Automation of General-to-Specific Model Selection Procedures,"
Economics Series Working Papers
3, University of Oxford, Department of Economics.
- Krolzig, Hans-Martin & Hendry, David F., 2001. "Computer automation of general-to-specific model selection procedures," Journal of Economic Dynamics and Control, Elsevier, vol. 25(6-7), pages 831-866, June.
- Hans-Martin Krolzig, 2000. "Computer Automation of General-to-Specific Model Selection Procedures," Econometric Society World Congress 2000 Contributed Papers 0411, Econometric Society.
- Hans-Martin Krolzig & David Hendry, 1999. "Computer Automation of General-to-Specific Model Selection Procedures," Computing in Economics and Finance 1999 314, Society for Computational Economics.
- Busse, Matthias & Groizard, Jose Luis, 2006.
"Foreign direct investment, regulations, and growth,"
Policy Research Working Paper Series
3882, The World Bank.
- Pye, Robert, 1998. "Foreign direct investment in Central Europe:: Experiences of major Western investors," European Management Journal, Elsevier, vol. 16(4), pages 378-389, August.
- Andrew Mold, 2003. "The Impact of the Single Market Programme on the Locational Determinants of US Manufacturing Affiliates: An Econometric Analysis," Journal of Common Market Studies, Wiley Blackwell, vol. 41(1), pages 37-62, 03.
- 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 1076-1094, 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.
- James R. Markusen & Anthony J. Venables, 1997.
"Foreign Direct Investment as a Catalyst for Industrial Development,"
NBER Working Papers
6241, National Bureau of Economic Research, Inc.
- Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
- Agnès Bénassy-Quéré & Lionel Fontagné & Amina Lahrèche-Révil, 2001. "Foreign Direct Investment and Company Taxation in Europe," Economics Working Papers 004, European Network of Economic Policy Research Institutes.
- John H Dunning & Christos N Pitelis, 2008. "Stephen Hymer's contribution to international business scholarship: an assessment and extension," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(1), pages 167-176, January.
- Head, Keith & Mayer, Thierry, 2002.
"Market Potential and the Location of Japanese Investment in the European Union,"
CEPR Discussion Papers
3455, C.E.P.R. Discussion Papers.
- Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
- Li, Xiaoying & Liu, Xiaming, 2005. "Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship," World Development, Elsevier, vol. 33(3), pages 393-407, March.
- Williamson, Peter J, 1986. "Multinational Enterprise Behaviour and Domestic Industry Adjustment under Import Threat," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 359-368, August.
- Michael Gast & Roland Herrmann, 2008. "Determinants of foreign direct investment of OECD countries 1991-2001," International Economic Journal, Taylor & Francis Journals, vol. 22(4), pages 509-524.
- Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
- Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
- Ozturk, I., 2007. "Foreign Direct Investment – Growht Nexus: A Review of The Recent Literature," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 4(2), pages 79-98.
When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:dynreg44. 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: (Sarah Burns)
If references are entirely missing, you can add them using this form.