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dc.contributor.authorJungnickel, Rolfen_US
dc.contributor.authorBorrmann, Christineen_US
dc.contributor.authorKeller, Dietmaren_US
dc.date.accessioned2009-01-28T15:57:06Z-
dc.date.available2009-01-28T15:57:06Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/19296-
dc.description.abstractThe tradition of gravity models is in the analysis of trade flows with market size and geographic or economic distance as core variables. Both these variables can be important determinants of FDI, too. However, when such models are used to explain FDI, there can be differences in the mode of operation of these variables so that the interpretation can become uncertain. Market size can reach beyond the host country and distance can be an incentive as well as an impediment to FDI. In the present paper, we use gravity-type models in order to assess the level of German FDI in CEE countries, distinguishing between the four nearby core countries and the other six EU accession countries. Estimates are done both on the basis of an in-sample as well as an out-of-sample approach on the basis of FDI in 81 important host countries. From the various specifications it becomes obvious that (1) beside the size of the host country, the market potential of neighboring countries is an important determinant of the regional structure of German FDI, and (2) the costs of operating at a distance seem to be weighted higher than the advantage of being close to distant markets. Geographic distance seems to be more important than various measures of economic distance. On the whole, gravity-type models seem to be appropriate to explain the regional structure of FDI. However, the results should be interpreted with caution given the extremely wide confidence intervals of the estimates which is a feature of former studies, too.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesHWWA Discussion Paper 328en_US
dc.subject.jelF20en_US
dc.subject.jelF23en_US
dc.subject.ddc330en_US
dc.subject.keywordForeign Direct Investmenten_US
dc.subject.keywordGravity Modelen_US
dc.subject.keywordTransformation Countriesen_US
dc.subject.stwDirektinvestitionen_US
dc.subject.stwDeutschen_US
dc.subject.stwGravitationsmodellen_US
dc.subject.stwDeutschlanden_US
dc.subject.stwOstmitteleuropaen_US
dc.titleWhat gravity models can tell us about the position of German FDI in Central and Eastern Europeen_US
dc.typeWorking Paperen_US
dc.identifier.ppn499716280en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:hwwadp:26386-
Appears in Collections:HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv

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