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Agglomeration Effects in South-South FDI

Alessia Amighini () and Chiara Franco

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: The progressive rise in the amount of South-South FDI flows has inspired a number of studies to account for possible determinants. Using firm-level data on FDI flows from 2003 until 2011, we examine what determines green field FDI among the group of low and middle income countries (South-South FDI), with special regard to the role played by agglomeration economies. We separately consider manufacturing and services sectors. Our main findings confirm the hypotheses according to which both country of origin agglomeration and industry agglomeration are relevant in explaining this type of flows.

Keywords: FDI location; South-South FDI; agglomeration economies (search for similar items in EconPapers)
JEL-codes: F14 F21 F23 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2012-09
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