Determinants of foreign direct investment
By: Bruce A. Blonigen, Jeremy Piger
Contributors: Piger, Jeremy Max; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16704; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16704.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Empirical studies of bilateral foreign direct investment (FDI) activity show substantial differences in specifications with little agreement on the set of covariates that are (or should be) included.  We use Bayesian statistical techniques that allow one to select from a large set of candidates those variables most likely to be determinants of FDI activity.  The variables with consistently high inclusion probabilities are traditional gravity variables, cultural distance factors, parent-country per capita GDP, relative labor endowments, and regional trade agreements.  Variables with little support for inclusion are multilateral trade openness, host country business costs, host-country infrastructure (including credit markets), and host-country institutions.  Of particular note, our results suggest that many covariates found significant by previous studies are not robust"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 4/21/2011.

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