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Relative Factor Abundance and FDI Factor Intensity in Developed Countries

Alfons Palangkaraya () and Andreas Waldkirch ()

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This study looks at the link between the patterns of trade-revealed comparative advantage and net inward foreign direct investment in five developed countries: France, Italy, Japan, the United Kingdom, and the United States. Despite assertions that market access is the primary motive for foreign direct investment flows among developed countries, the study confirms an earlier study which found a significant role of comparative advantage in determining inflows of foreign direct investment in developed countries, especially in the services industry.

JEL-codes: F21 F14 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2006-05
New Economics Papers: this item is included in nep-int
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Journal Article: Relative factor abundance and FDI factor intensity in developed countries (2008) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2006n12

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