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Title:Gravity for FDI PDF Logo
Authors:Kleinert, Jörn
Toubal, Farid
Issue Date:2005
Series/Report no.:CeGE discussion paper 46
Abstract:We derive gravity equations from three different general equilibrium models incorporating multinational firms. We show that gravity equations are particularly adapted to the analysis of foreign affiliates' activities of multinational firms. However, the different theoretical models lead to different specifications and interpretations of the empirical results. This is particularly the case considering gravity equations derived from factor proportion models compared to those derived from proximity concentration theories.
Subjects:Gravity equation
multinational firms
heterogeneity
JEL:C21
F12
F23
Document Type:Working Paper
Appears in Collections:cege-Diskussionspapiere, Universität Göttingen

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