| |
|
Title: |
The Location of the United States' FDI Under the Share Gravity Model |
| Author: |
Sampayo, Felipa Mello |
| Author
Affiliation: |
Universidade Lus¶ofona de Humanidades e Tecnologias, Lisbon, Portugal |
|
Abstract: |
This paper examines the geographical distribution of US MNEs FDI using the share
gravity model, which adds a competition factor to the classical gravity formulation. The
aim is to show that, unlike previous applications of the gravity model to FDI, the share of
FDI pertaining to a location is determined not only by its own characteristics but also by
the those of competing locations. A dynamic share gravity model is estimated for a panel
of both industrialised and developing countries using ¯ve alternative measures of FDI. The
results vindicate the superiority of the share relative to the classical version of the gravity
model in that the competition factor has a signi¯cantly negative impact on the FDI share. |
|
© 2005 International Economic Journal
Last updated on 12-Januaryl-2005. Please send inquiries and suggestions to iejournal@uwm.edu.
|
