Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26119
Authors: 
Nicolini, Marcella
Year of Publication: 
2007
Series/Report no.: 
CESifo working paper 2074
Abstract: 
Several papers have proven that the institutional environment of the receiving country can influence the choice to establish an FDI. Property rights theory suggests that contract enforcement matters differentially across sectors. This paper is the first attempt to test whether institutions matter differentially across different sectors in FDI decision. Using data on U.S. Direct Investment Abroad, I find that institutional characteristics of the country and the industry positively affect the volume of offshoring between U.S. companies and their affiliates. The suggested argument is stronger for the intermediate products, while the evidence is weak for products ready for sale.
JEL: 
F10
F23
Document Type: 
Working Paper

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