|
EconStor >
Eberhard Karls Universität Tübingen >
Wirtschaftswissenschaftliche Fakultät, Universität Tübingen >
Tübinger Diskussionsbeiträge, Universität Tübingen >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/40304
|
| | |
| Title: | | Gravity for FDI  |
| Authors: | | Kleinert, Jörn Toubal, Farid |
| Issue Date: | | 2007 |
| Series/Report no.: | | Tübinger Diskussionsbeitrag 313 |
| Abstract: | | Gravity equations explaining foreign affiliates' sales are ad hoc and hence, estimated coeffcients are hard to interpret. We therefore provide the theoretical underpinnings of the gravity equation applied to the analysis of sales of foreign affiliates of multinational firms. We argue that the success of the gravity equation results from the fact that it can be derived from various theoretical models. We illustrate this point by deriving a gravity equation from three different models of multinational firms. Using data on real affiliate sales, we show how this derived gravity equation can nevertheless be used to discriminate between the different theoretical models. - gravity equation ; multinational firms ; heterogeneity |
| JEL: | | F23 F12 C21 |
| Persistent Identifier of the first edition: | | urn:nbn:de:bsz:21-opus-30718 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Tübinger Diskussionsbeiträge, Universität Tübingen
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/40304
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|