Pattern of Interdependence of Aggregate FDI from the Same Source Country

Francis Kemegue ()
Additional contact information
Francis Kemegue: Department of Economics, University of Pretoria

No 200928, Working Papers from University of Pretoria, Department of Economics

Abstract: This paper explores the possibility that monitoring resources explain the clustering in space of aggregate FDI from the same source country. Theoretically, the paper shows that independently of any institutional incentive setting, costly monitoring incites headquarters to locate new plants where monitoring resources are relatively cheap. Clustering of rms from the same source country is therefore interpreted as information sourcing. Empirical application finds that the importance of geographic neighbors to the location choice of US non-manufacturing FDI in Europe conform to the advanced hypothesis.

Keywords: Foreign direct investment; Spillovers; geographic agglomeration (search for similar items in EconPapers)
JEL-codes: C33 F21 F23 G14 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.up.ac.za/media/shared/61/WP/wp_2009_28.zp39400.pdf (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:pre:wpaper:200928

Access Statistics for this paper

More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().