NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Spacey Parents: Spatial Autoregressive Patterns in Inbound FDI

Bruce A. Blonigen, Ronald B. Davies, Helen T. Naughton, Glen R. Waddell

NBER Working Paper No. 11466
Issued in July 2005
NBER Program(s):   ITI

Increasing attention has been given to the impact of third countries on outbound FDI to a given host country. Here, we consider potential third-country effects on inbound FDI. A simple model suggests two sources of such effects on a country's inbound FDI. First, it will tend to receive more FDI fromparent countries proximate to large third countries. Second, FDI from third countries may increase or decrease FDI from the parent country in question depending on whether production spillovers or crowding out effects dominate. Using data on US inbound FDI from OECD countries during 1980-2000, we find strong evidence for parent market proximity effects. We find robust results for third country FDI effects only in a European subsample. There, crowding out effects dominate.

download in pdf format
   (389 K)

email paper

This paper is available as PDF (389 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w11466

Published: Brakman, S. and H. Garretsen (eds.) Foreign Direct Investment and the Multinational Enterprise. Cambridge, MA: The MIT Press, 2008.

Users who downloaded this paper also downloaded these:
Blonigen, Davies, Waddell, and Naughton w10939 FDI in Space: Spatial Autoregressive Relationships in Foreign Direct Investment
Blonigen and Piger w16704 Determinants of Foreign Direct Investment
Blonigen w11299 A Review of the Empirical Literature on FDI Determinants
Bosworth, Collins, and Chodorow-Reich w13313 Returns on FDI: Does the U.S. Really Do Better?
Ekholm, Forslid, and Markusen w9517 Export-Platform Foreign Direct Investment
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us