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The investment development path in space

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  • Alexandros Ragoussis

    (OECD Statistics Directorate - OECD Statistics Directorate)

Abstract

Although spatial hypotheses are not new in the FDI literature, their examination in the dynamic context of the 'investment development path' (IDP) provides some new insights. In this paper, we examine proximity to markets at different stages of the IDP as a determinant of a country's own foreign direct investment (FDI) pattern. Our main contribution lies in the empirical estimation of the importance of spatial determinants for the emergence of inward and outward FDI. Our results support that distance to countries at higher stages up the IDP which are better integrated into the world FDI network, has a negative effect on the probability of transition from any stage of the IDP to the next. The magnitude of the impact is generally increasing in the stage of the surrounding markets.

Suggested Citation

  • Alexandros Ragoussis, 2011. "The investment development path in space," Post-Print hal-00670756, HAL.
    • Handle: RePEc:hal:journl:hal-00670756
    DOI: 10.1007/s10290-011-0089-7
    Note: View the original document on HAL open archive server: https://hal.science/hal-00670756
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    Cited by:

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    3. Konstantinos Lagos & Yuan Wang, . "The threshold effects of global economic uncertainty on foreign direct investment," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.

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    More about this item

    Keywords

    Foreign direct investment; Investment development path; F21; F23;
    All these keywords.

    JEL classification:

    • 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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