On the Role of Distance for Outward FDI

@inproceedings{Egger2004OnTR,
  title={On the Role of Distance for Outward FDI},
  author={Peter Egger},
  year={2004}
}
This paper focuses on the estimation of three distance-related effects on outward FDI. (i) Distance harms vertical multinationals, since they engage in trade. (ii) It makes non-trading multinationals better off than exporters. (iii) This positive effect on horizontal FDI is expected to rise with bilateral country size due to the home market effect. The use of panel data and related econometric methods is highly recommended to avoid parameter bias from endogenous, unobserved, time-invariant… CONTINUE READING
5 Citations
29 References
Similar Papers

References

Publications referenced by this paper.
Showing 1-10 of 29 references

Econometric Analysis of Panel Data (Wiley, Chichester)

  • B. H. Baltagi
  • 2001
Highly Influential
6 Excerpts

The estimation of the variances in a variance-components model, International Economic Review

  • T. Amemiya
  • 1971
Highly Influential
11 Excerpts

Multinational Firms and the Theory of International Trade

  • J. R. Markusen
  • 2002
Highly Influential
3 Excerpts

Efficient estimation using panel

  • T. S. Breusch, G. E. Mizon, P. Schmidt
  • data, Econometrica
  • 1989
Highly Influential
4 Excerpts

Multinational enterprises and new trade theory: evidence for the convergence hypothesis

  • S. Barrios, H. Göerg, E. Strobl
  • Open Economies Review
  • 2004
2 Excerpts

Similar Papers

Loading similar papers…