Determinants of foreign direct investment in services
Working paper
Permanent lenke
http://hdl.handle.net/11250/2435850Utgivelsesdato
2004Metadata
Vis full innførselSamlinger
- Bora-import [434]
Sammendrag
This study uses industry level foreign direct investment (FDI) data from 57 countries 1989-2000, to examine the host country determinants of FDI flows in services as a whole, and in the major service industries. Consistent with the observation that many services are non-tradable, we find that service FDI is market-seeking, and unaffected by trade openness. Producer services are important in binding together vertically disintegrated chains of production, accordingly we find a strong correlation between FDI in manufacturing and FDI in finance and transport. While composite political risk does not affect FDI in services, disaggregate socio-political indices prove significant in certain service industries.
Utgiver
Chr. Michelsen InstituteSerie
CMI Working paperWP 2004: 2