EconPapers    
Economics at your fingertips  
 

Determinants of Capital Intensive and R&D Intensive Foreign Direct Investment

Martin Gonzalez-Eiras () and Jose Prado ()

No 753, Seminar Papers from Stockholm University, Institute for International Economic Studies

Abstract: We study the determinants of capital intensity and technology content of foreign direct investment, an important economic driving force for developing countries. For this purpose, we use sectoral industry data on U.S. foreign investment abroad, and data on host countries' institutional characteristics, like investment climate, protection of property rights, labor standards and constitutional arrangements. Our regressions show that better protection of property rights has a significant positive effect on R&D but not on capital intensive capital flows. There is evidence that an increase in workers' bargaining power results in a reduction of capital and technologically intensive foreign investment. And although the evidence with respect to constitutional arrangements is not very strong, presidential regimes appear to be less able than parliamentary ones to deliver policies attracting R&D intensive capital flows. This is consistent with recent research on the effects of constitutional arrangements on economic growth.

Keywords: FDI (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2007-08-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://su.diva-portal.org/smash/get/diva2:344507/FULLTEXT01 (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: https://EconPapers.repec.org/RePEc:hhs:iiessp:0753

Access Statistics for this paper

More papers in Seminar Papers from Stockholm University, Institute for International Economic Studies Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Hanna Christiansson ().

 
Page updated 2020-02-22
Handle: RePEc:hhs:iiessp:0753