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Vertical Specialization and New Determinants of FDI: Evidence from South and East Asia

Klimis Vogiatzoglou

Global Economic Review, 2007, vol. 36, issue 3, 245-266

Abstract: By estimating a dynamic panel-gravity model of bilateral foreign direcr investment (FDI), this article investigates the location determinants of inward FDI in South and East Asia and assesses their short-run and long-run effects. The econometric results highlight the importance of the vertical specialization-, trade-, and international integration-related location factors. The gravity-specific variables are also found to be significant location determinants, whilst some of the traditional determinants are found to have either a weak or statistically insignificant effect (except host-market size) on inward FDI in South and East Asia.

Keywords: Foreign direct investment (FDI); vertical specialization links; location determinants; South &East Asia; international economic integration (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (13)

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DOI: 10.1080/12265080701561984

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