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Foreign direct investment in the Asian economies

Author

Listed:
  • Guglielmo Maria Caporale

    (Brunel University)

  • Carlos Pestana Barros
  • Bruno Damasio

Abstract

This paper analyses FDI in 27 Asian countries in the period 2003-2011using a panel data quantile regression method and taking into account the heterogeneity in the data. Robustness tests are carried out by allowing for the endogeneity of the GDP growth rate (Harding and Lamarche, 2009). Overall, there is clear evidence of heterogeneity as indicated by the differences in the relative importance of the factors affecting FDI in the various countries. Moreover, the analysis by quantile confirms that bigger economies tend to attract more sizeable FDI inflows than smaller ones, as one would expect.

Suggested Citation

  • Guglielmo Maria Caporale & Carlos Pestana Barros & Bruno Damasio, 2013. "Foreign direct investment in the Asian economies," NCID Working Papers 10/2013, Navarra Center for International Development, University of Navarra.
    • Handle: RePEc:nva:unnvaa:wp10-2013
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    1. Hong Hiep Hoang & Michaël Goujon, 2018. "Determinants of Intra-Region and Extra-Region Foreign Direct Investment Inflow in ASEAN: A Spatial Econometric Analysis," Post-Print hal-01918889, HAL.

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    More about this item

    Keywords

    Panel quantile models; Foreign Direct Investment (FDI); Asian countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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