Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52467
Authors: 
Davies, Ronald B.
Guillin, Amélie
Year of Publication: 
2011
Series/Report no.: 
CESifo working paper: Trade Policy 3599
Abstract: 
Foreign direct investment (FDI) in services has grown significantly in recent years. Evidence of spatial relationships in FDI decisions have been provided for goods manufacturing by utilizing physical distance-based measures of trade costs. This paper investigates spatial interactions for services FDI using several distance measures, including physical distance, genetic distance, and transport time. Across different measures of distance, the traditional determinants of outbound FDI activity remain valid for services. We also find spatial interdependence for services FDI that is generally supportive of complex vertical motivations.
Subjects: 
foreign direct investment
services
spatial econometric techniques
JEL: 
F21
F23
Document Type: 
Working Paper

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