BORA CMI: Determinants of foreign direct investment in services

Please use this identifier to cite or link to this item: http://hdl.handle.net/10202/122

Title:	Determinants of foreign direct investment in services
Authors:	Kolstad, Ivar Villanger, Espen
Keywords:	Foreign direct investment Services
Issue Date:	2004
Publisher:	Chr. Michelsen Institute
Series/Report no.:	CMI Working paper WP 2004: 2
Abstract:	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.
URI:	http://hdl.handle.net/10202/122
ISBN:	82-8062-075-3
ISSN:	0804-3639
Appears in Collections:	CMI Collection (Reports, Working Papers, Articles etc.)

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