Patterns of foreign direct investment in poor countries

Hildegunn Kyvik Nordås

Journal of International Trade & Economic Development, 2002, vol. 11, issue 3, pages 247-265

Abstract: This paper introduces endogenous adoption costs for productive assets in a Ramsey-type growth model with international capital flows. There are two classes of productive assets: owner-specific and location-specific. Adoption costs are an increasing function of the level of technology embodied in the investor's owner-specific assets and a declining function of the host country's location-specific assets. In this setting, the observed pattern of international capital flows is consistent with diminishing returns to capital. Further, our model predicts that the sectoral allocation of foreign direct investment is similar in rich and poor countries.

Keywords: Foreign Direct Investment; Economic Growth; Industrial Structure; Adoption Costs (search for similar items in EconPapers)
Date: 2002
View list of references

Downloads: (external link)
http://taylorandfrancis.metapress.com/link.asp?tar ... &id=FCKNKMJTDNGJ4TUE (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Patterns of Foreign Direct Investment in Poor Countries (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:jitecd:v:11:y:2002:i:3:p:247-265

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Journal of International Trade & Economic Development is edited by Pasquale M. Sgro and Bharat R. Hazari

More articles in Journal of International Trade & Economic Development from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().