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How Far Away is an Intangible? Services FDI and Distance

  • Ronald B Davies

    (University College Dublin)

  • Amélie Guillin

    (University College Dublin)

Foreign direct investment (FDI) in services has grown significantly in recent years. Evidence of spatial relationships in FDI decisions have been provided for goods man- ufacturing by utilizing physical distance-based measures of trade costs. This paper investigates spatial interactions for services FDI using several distance measures, in- cluding physical distance, genetic distance, and transport time. Across different mea- sures of distance, the traditional determinants of outbound FDI activity remain valid for services. We also find spatial interdependence for services FDI that is generally supportive of complex vertical motivations.

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File Function: First version, 2011
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Paper provided by School of Economics, University College Dublin in its series Working Papers with number 201120.

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Length: 27 pages
Date of creation: 30 Sep 2011
Date of revision:
Handle: RePEc:ucn:wpaper:201120
Contact details of provider: Postal: UCD, Belfield, Dublin 4
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Web page: http://www.ucd.ie/economics

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