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What Drives Sector Allocation of Foreign Direct Investment in Iceland?

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  • Helga Kristjánsdóttir

    (University of Iceland)

Abstract

The objective of this paper is to examine how the driving forces of investment in a small country like Iceland differ from those in larger countries. Special attention is given to the dominating investment sector in Iceland due to its resource intensity. Estimates are based on 1989-1999 panel data on foreign direct investment in various sectors. This may help explain why the investment pattern in Iceland differs from the general case.

Suggested Citation

  • Helga Kristjánsdóttir, 2005. "What Drives Sector Allocation of Foreign Direct Investment in Iceland?," EPRU Working Paper Series 05-08, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:epruwp:05-08
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    File URL: http://web.econ.ku.dk/epru/files/wp/wp-05-08.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ronald B. Davies & Helga Kristjánsdóttir, 2010. "Fixed Costs, Foreign Direct Investment, and Gravity with Zeros," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 47-62, February.
    2. Helga Kristjánsdóttir, 2019. "Does Investment Replace Aid As Countries Become More Developed?," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(2).
    3. Muhammad Imtiaz Subhani & Amber Osman & Rabia Khokhar, 2011. "The new version of gravity model in explaining bilateral trade. “A comparative study for developed and developing nations”," EuroEconomica, Danubius University of Galati, issue 28, pages 41-54, May.

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    More about this item

    Keywords

    foreign direct investment; multinational corporations;

    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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