EconPapers    
Economics at your fingertips  
 

Determinants of FDI for Spanish regions: evidence using stock data

Mariam Camarero (), Laura Montolio and Cecilio Tamarit
Additional contact information
Laura Montolio: University of Valencia and INTECO

Empirical Economics, 2020, vol. 59, issue 6, No 8, 2779-2820

Abstract: Abstract After decades of academic debate on the factors that determine FDI, the discussion still remains open. This article empirically investigates the determinants of FDI activity using Spanish regional data (NUTS 2) for the period 2004–2013. We apply the Poisson pseudo-maximum-likelihood estimator with country-origin fixed effects in a gravity framework and implement an exploratory factor analysis to avoid collinearity problems. The empirical analysis revealed the following allocation patterns: FDI locational strategies in the Spanish regions are determined significantly by the economic potential, competitiveness and agglomeration effects of the regions, and to a lesser extent, by the productive capacity. We also confirm the adequacy of using the stock of FDI in the empirical analysis and obtain an improved specification of the model compared to previous literature based on FDI flows. The results allow us to draw some policy implications about the prospective promotion of incoming FDI at the subnational level.

Keywords: Foreign direct investment determinants; PPML; Gravity model; Spanish regions (search for similar items in EconPapers)
JEL-codes: C23 F21 R12 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00181-019-01748-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Determinants of FDI for Spanish regions: Evidence using stock data (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:59:y:2020:i:6:d:10.1007_s00181-019-01748-8

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-019-01748-8

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-10-22
Handle: RePEc:spr:empeco:v:59:y:2020:i:6:d:10.1007_s00181-019-01748-8