Is foreign direct investment attracted to 'knowledge creators'?

Catherine Co and John List

Applied Economics, 2004, vol. 36, issue 11, 1143-1149

Abstract: The effect of 'knowledge creators' on location patterns of new foreign plants entering the USA from 1986 to 1993 is analysed. The empirical results from a conditional logit model suggest a link exists between knowledge bases, measured by patent counts, and the location decisions of foreign plants. In the limit, these results imply that a 1% increase in patent counts is associated with an increase in the probability of attracting a new foreign plant by as much as 1.874%.

Date: 2004
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DOI: 10.1080/0003684042000176810

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