Spacey Parents and Spacey Hosts in Foreign Direct Investment

Badinger, Harald and Egger, Peter (2017) Spacey Parents and Spacey Hosts in Foreign Direct Investment. Economica, 84 (335). pp. 480-497. ISSN 1468-0335

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Abstract

Shocks on FDI of some parent country in a host affect the same parent's FDI in other hosts. Shocks on a parent's FDI in some host affect other parents' FDI in the same host. In general equilibrium, shocks on FDI between any country pair will affect all country pairs' FDI. Using cross-sectional data on FDI among 22 OECD countries in 2000, we use a spatial estimation framework to allow for all three modes of interdependence simultaneously, thereby distinguishing between market-size-related and remainder interdependence. Our results highlight the complexity of multinational enterprises' investment strategies and the interconnectedness of the world investment system.

Item Type:	Article
Additional Information:	This is the peer reviewed early view version of the following article, which has been published in final form at http://dx.doi.org/10.1111/ecca.12177. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Divisions:	Departments > Volkswirtschaft > Internationale Wirtschaft Forschungsinstitute > Europafragen
Version of the Document:	Accepted for Publication
Depositing User:	Gertraud Novotny
Date Deposited:	22 Mar 2017 13:11
Last Modified:	22 Apr 2018 02:27
Related URLs:	Publisher
FIDES Link:	https://bach.wu.ac.at/d/research/results/73959/
URI:	https://epub.wu.ac.at/id/eprint/5479

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