Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27653
Authors: 
Jochem, Axel
Year of Publication: 
2008
Series/Report no.: 
Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2008,29
Abstract: 
In this paper an index of financial competitiveness is calculated that corresponds to the market-to-book ratio of inward FDI stocks. For a panel of five advanced economies from 1980 to 2006 it is shown that price competitiveness, stable inflation rates and registered patents have a positive impact on the index. Institutional factors like EMU membership or Anglo-Saxon legislation also play a role. Financial competitiveness in turn encourages FDI inflows whereas it benefits fixed investment relative to M&A. There is also some evidence that an innovative environment accelerates investment decisions by promoting competition among investors.
Subjects: 
Competitiveness
foreign direct investment
international integration
JEL: 
F41
F23
F21
Document Type: 
Working Paper

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