What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows

Maximiliano Sosa Andrés, Peter Nunnenkamp and Matthias Busse

No 2012-52, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Non-traditional source countries of FDI play an increasingly important role, notably in developing host countries. This raises the question of whether the location choices differ systematically between traditional and non-traditional source countries. We perform Logit and Poisson Pseudo Maximum Likelihood estimations to assess the determinants of bilateral FDI flows. We find that economic geography variables are more relevant for FDI from nontraditional sources. The risk aversion of non-traditional investors is not consistently weaker than that of traditional investors. Resource abundance and superior technology in the host countries represent minor pull factors of FDI from non-traditional sources.

Keywords: FDI flows; types of FDI; source-host country pairs; location choices; gravity-type models (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows (2013)
Working Paper: What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows (2012)
Working Paper: What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows (2012)
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