FDI in space: Spatial autoregressive relationships in foreign direct investment

Abstract

We thank Peter Egger, Eric Strobl, participants at the Fall 2004 Mid-West International Economics Group meeting and participants at the DIW/GEP Workshop on FDI and International Outsourcing. Any errors or omissions are the responsibilities of the authors. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

Home Bank Intermediation of Foreign Direct Investment

“…Similarly, Blonigen et al (2007) use the same data source on affiliate sales data over 16 years: except for a common deterministic trend, they do not investigate the time-series properties of the data. The instability created by potentially trending variables could affect the estimates as well.…”

Greenfield FDI, cross-border M&As, and government size

“…Thus, the estimator corrects for serial correlation (of unknown length) both within and between cross-sectional units. The latter is of particular advantage for the present application because it is well known since the work of Blonigen et al (2007) that FDI is spatially autocorrelated. 23 Although the Driscoll and Kraay (1998) method relies on large T-asymptotics, it has been shown to perform reasonably well in large N, small T panels (like ours), compared with alternative covariance estimators when cross-sectional dependence is present (Hoechle, 2007).…”

The national bioenergy investment model: Technical documentation

“…The question the model seeks to answer is, which of a set of business models are likely to receive domestic investment funds or FDI, and in what quantities? In contrast, most research on FDI focuses on other factors, including: FDI flows to countries (rather than projects) (Asiedu 2002, Sethi et al 2002, Akinkugbe 2003, Ahlquist 2006, Blonigen et al 2007, Busse and Hefeker 2007, Jinjarak 2007, Lim 2008, Dippenaar 2009); mode of entry (Kogut and Nath 1988, Hennart and Park 1993, Li and Filer 2007, Li and Rugman 2007, Nocke and Yeaple 2007, Asmussen et al 2009); the impact of FDI on host countries (Jenkins 2006, Adams, 2009, Chaudhuri 2010; and the decision making process within a particular firm (Dahlquist and Robertsson 2001, Moosa 2002, White and Fan 2006, Carlesi et al 2007, Dippenaar 2009, Klier 2009, Kinda 2010. A survey of the literature on FDI identified one paper assessing the potential of projects within a portfolio to attract foreign investment (Li and Sherali 2003); however, the methodology in that paper requires detailed knowledge of the projects and is unsuitable for a simulation model.…”