Foreign Direct Investment in Producer Services: Theory and Empirical Evidence

Horst Raff and Marc von der Ruhr ()

Applied Economics Quarterly (formerly: Konjunkturpolitik), 2007, vol. 53, issue 3, 299-321

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.

Keywords: foreign direct investment; producer services; multinational enterprises (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Date: 2007
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Working Paper: Foreign Direct Investment in Producer Services: Theory and Empirical Evidence (2001)
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