US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?

Kemegue, Francis and Mohan, Ramesh (2007): US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?

Abstract

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
• Language: English
• Keywords: Foreign Direct Investment, Spillovers, ASEAN
• Subjects: O - Economic Development, Innovation, 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

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