Revisiting the investment development path (IDP): A non linear fluctuation approach
Saime Kayam () and
International Journal of Applied Econometrics and Quantitative Studies, 2009, vol. 9, issue 2
The investment development path (IDP) approach claims that countries go through five stages with respect to their net outward investment positions as they develop. Attempts to test its validity using time-series or cross-section estimation techniques were moderately successful and the functional specifications used did not reflect IDP structure well. In this study, we introduce a fluctuation function, which is obtained from the general solution of an exponential function reflecting a continuous compounding process. It has extra properties that help capture the idiosyncratic shape of IDP and gives parameter estimates that facilitate interpretation of the stage a country is at.
Keywords: investment development path; trigonometric function; nonlinear estimation (search for similar items in EconPapers)
JEL-codes: C23 F21 F23 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eaa:ijaeqs:v:9:y2009:i:1_12
Ordering information: This journal article can be ordered from
Access Statistics for this article
More articles in International Journal of Applied Econometrics and Quantitative Studies from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().