Abstract:
This paper examines the pattern of foreign direct investment (FDI) in producer services. Specifically we construct a model to explain the stylized fact that producer-service FDI tends to follow FDI by downstream industries. Our point is that this may be the result of informational barriers to entry into foreign markets. The preconditions of the model are shown to be consistent with panel data on U.S. FDI in 25 host countries from 1976 to 1995.
Applied Economics Quarterly (formerly: Konjunkturpolitik) is edited by Christian Wey and Klaus F. Zimmermann
More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot, Berlin Series data maintained by Deborah Anne Bowen ().
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