Davies, Ronald B.; Kristjánsdóttir, Helga - Department of Economics, University of Oregon - 2003
Fixed costs play a crucial role in current models of foreign direct investment (FDI), yet they are almost entirely ignored in empirical treatments of FDI. We fill this gap by using a 1989-2001 panel of FDI flows into Iceland to examine the determinants of fixed costs for multinational firms and...