Kemegue, Francis and Mohan, Ramesh (2007): US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?
Download (112kB) | Preview
This paper investigates the possibility of interdependence between flows of US FDI to the ASEAN region. The study incorporates information asymmetry into an FDI model to examine the influence of geographic neighbors on new flows of FDI from the United States. Spillovers are modeled using the cost structure of a multinational investing in a region where US firms are already present. The results show that there are negative spillovers of US FDI in the ASEAN region affecting mostly the non-manufacturing sector.
|Item Type:||MPRA Paper|
|Original Title:||US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?|
|Keywords:||Foreign Direct Investment, Spillovers, ASEAN|
|Subjects:||O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies
F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
|Depositing User:||Ramesh Mohan|
|Date Deposited:||28. Nov 2007 06:18|
|Last Modified:||12. Feb 2013 15:21|
Arellano, M., and Bond, S., (1991), “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations”, Review of Economic Studies, 58: 277-297.
Barrell, R., and Pain N., (1996), “An Econometric Analysis of U.S. Foreign Direct Investment”, Review of Economics and Statistics, 78 (2): 200-207.
Braunerhjelm, P., and Svensson, R., (1996), “Host Country Characteristics and Agglomeration in Foreign Direct Investment”, Applied Economics, 28: 833-840.
Bureau of Economic Analysis, [online data file], <http://www.bea.doc.gov/bea/di/home/directinv.htm>.
Filippaios, F., Papanastassiou, M., and Pearce, R., (2003), “The Evolution of US Outward Foreign Direct Investment in the Pacific Rim: a Cross-Time and Country Analysis”, Applied Economics, 35:1779-1787.
Greene, W., H., (2003), Econometric Analysis, 5th ed, Pearson Education.
Institute of Developing Economies, (2003), “Toward ASEAN-Japan Comprehensive Economic Partnership, Japan External Trade Organization (JETRO)”, available at <http://www.ide.go.jp/English/index4.html>
IMF, (2003), International Financial Statistics, [ CD-ROM], Washington, D.C., May.
IMF, (1993), Balance of Payment Manual, Washington DC.
Judson, R., and Owen, A., (1996), “Estimating Dynamic Panel Data Model, a Practical Guide for Macroeconomists”, Federal Reserve Board of Governors Working Paper, available at <http://www.federalreserve.gov/pubs/feds/1997/199703/199703pap.pdf>.
Keller, W., (2004), “International Technology Diffusion”, The Journal of Economic Literature, 92 (3).
Kiviet, J., (1995), “On Bias, Inconsistency and Efficiency of Various Estimators in Dynamic Panel Data”, Journal of Econometrics, 68: 53-78.
Love, J. H., (2003), “Technology Sourcing Versus Technology Exploitation: An Analysis of US foreign Direct Investment Flows”, Applied Economics, 35: 1667–1678.
Nickell, S., (1981), “Biases in Dynamic Models with Fixed Effects”, Econometrica, 49: 1417-1426.
Rubio, B. and Ribero, S., (1994), “An Econometric Analysis of Foreign Direct Investment in Spain”, 1964-1989, Southern Economic Journal, 61 (1): 104-120.
Wheeler, D. and Mody, A., (1992), “International Investment Location Decisions: The Case of U.S. Firms, Journal of International Economics, 33: 57-76.