Economics at your fingertips  


Mariam Camarero (), Laura Montolio and Cecilio Tamarit
Additional contact information
Laura Montolio: University of Valencia, Department of Applied Economics II, Av. dels Tarongers, s/n Eastern Department Building E-46022 Valencia, Spain

No 1907, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: Despite the sound theoretical foundations of FDI gravity models and its popularity in empirical studies, there is a lack of consensus regarding the econometric specification and the estimation of the gravity equation. This paper provides a comprehensive empirical evidence of the determinants of German outward FDI comparing several estimation methods in their multiplicative form. We use four versions of the Generalized Linear Model (GLM), namely, Poisson Pseudo Maximum Likelihood(PPML), Gamma Pseudo Maximum Likelihood (GPML), Negative Binomal Pseudo Maximum Likelihood (NBPML) and Gaussian-GLM. The results of the empirical application indicate that NBPML is the best performing estimator followed by GPML.

Keywords: FDI determinants; Outward Foreign Direct Investment; Germany; Gravity models; Generalized linear models (search for similar items in EconPapers)
JEL-codes: C13 C33 F21 F23 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-ecm, nep-eec, nep-int and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) First version, 2019 (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Working Papers from Department of Applied Economics II, Universidad de Valencia Contact information at EDIRC.
Bibliographic data for series maintained by Vicente Esteve ().

Page updated 2022-01-14
Handle: RePEc:eec:wpaper:1907