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Impact of aggregation on measuring FDI spillovers: a Monte Carlo appraisal

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  • Sun, Sizhong

Abstract

Using a Monte Carlo experiment, this paper explores the impact of data aggregation on measuring the FDI spillovers. We find the aggregation significantly covers up the spillovers, which is further exacerbated by the correlation between the foreign presence and the explanatory variable at the disaggregate level. However, if the FDI at the level of aggregation is proportional to its domestic counterparts, then the aggregation does not affect the measurement of spillovers.

Suggested Citation

  • Sun, Sizhong, 2009. "Impact of aggregation on measuring FDI spillovers: a Monte Carlo appraisal," MPRA Paper 15340, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15340
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    More about this item

    Keywords

    Aggregation; Spillovers; FDI;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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