 Home Country Bias in Foreign Direct InvestmentColin White and Miao Fan Chapter 4 in Risk and Foreign Direct Investment, 2006, pp 41-59 from Palgrave Macmillan Abstract: Abstract This chapter analyses in what sense and why the aggregate level of foreign direct investment is lower than might be anticipated. It begins by pointing out the ambiguities of definition and the limitations of the estimates made of FDI. It goes on to explore the degree to which all economic actors, whether they are individuals, governments or companies, prefer their own. This applies to where a person works, where he/she places savings, or to the origin of the goods and services consumed by that person. It also applies to where a company invests in productive facilities, who it employs and where it purchases. It explores three arguments advanced to establish such a bias, analysing in turn the arguments based on deficiencies in market integration, the tendency for equality between national savings and national investment, and a pronounced domestic orientation in the composition of portfolios of financial assets. The chapter defines home country bias, indicates how it might be measured and seeks to explain it. It concludes by making a link between country risk and home country bias in FDI. Keywords: Foreign Direct Investment; Home Country; Market Integration; Capital Mobility; Portfolio Investment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62483-2_4 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.