TY  - JOUR
AU  - Blonigen,Bruce A.
AU  - Davies,Ronald B.
AU  - Naughton,Helen T.
AU  - Waddell,Glen R.
TI  - Spacey Parents: Spatial Autoregressive Patterns in Inbound FDI
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11466
PY  - 2005
Y2  - July 2005
UR  - http://www.nber.org/papers/w11466
L1  - http://www.nber.org/papers/w11466.pdf
N1  - Author contact info:
Bruce Blonigen
Department of Economics
1285 University of Oregon
Eugene, OR 97403-1285
Tel: 541/346-4680
Fax: 541/346-1243
E-Mail: bruceb@uoregon.edu

Ronald Davies
University of Oregon
E-Mail: rdavies@uoregon.edu

Helen Naughton
University of Oregon
Department of Economics
Eugene, OR  97403-1285
Tel: 541-346-4664
Fax: 541-346-1243
E-Mail: htammela@uoregon.edu

Glen Waddell
Department of Economics
University of Oregon
Eugene, OR 97403-1285
Tel: 541 346 1259
E-Mail: waddell@uoregon.edu
M2  - featured in NBER digest on 2005-07-04
AB  - 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.
ER  -