Comparison between FDI motivations in goods and services

Amélie Guillin

Economics Bulletin, 2011, vol. 31, issue 4, 2744-2756

Abstract: Foreign direct investment (FDI) in goods and in services has grown substantially in the last decades, even if the importance of FDI in services has occured later. Not accounting for third-country effect misleads the determinants of FDI activity. This paper investigates the difference between FDI determinants for goods and services considering dependence in space. Using sales of US affiliates between 1983 and 2007, I find evidence of spatial interdependence in both activities, goods and services. Multinational enterprises motivations vary across regions more than across activities.

Keywords: Foreign direct investment; Spatial econometric techniques. (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2011-10-03
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