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Relative Factor Abundance and FDI Factor Intensity in Developed Countries

Author

Listed:
  • Alfons Palangkaraya

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Andreas Waldkirch

    (Colby College)

Abstract

This study looks at the link between the patterns of trade-revealed comparative advantage and net inward foreign direct investment in five developed countries: France, Italy, Japan, the United Kingdom, and the United States. Despite assertions that market access is the primary motive for foreign direct investment flows among developed countries, the study confirms an earlier study which found a significant role of comparative advantage in determining inflows of foreign direct investment in developed countries, especially in the services industry.

Suggested Citation

  • Alfons Palangkaraya & Andreas Waldkirch, 2006. "Relative Factor Abundance and FDI Factor Intensity in Developed Countries," Melbourne Institute Working Paper Series wp2006n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2006n12
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2006n12.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

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

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