The Knowledge-Capital Model and Small Countries

Helga Kristjánsdóttir ()

No 05-09, EPRU Working Paper Series from Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics

Abstract: In this paper, Knowledge-Capital model estimates for a small country are compared to estimates obtained for larger economies. The model is based on unique panel data on foreign direct investment in Iceland. Estimates obtained for the Knowledge-Capital model differ considerable from what has been obtained in earlier research, indicating that the driving forces behind foreign direct investment in small countries appear to be different from those in large countries.

Keywords: foreign direct investment; knowledge-capital (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn
Date: Written 2005-08
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