A gravity model for foreign re-investment

This paper broadens the scope of Foreign Direct Investment (FDI) models by deriving a gravity equation for foreign re-investment. Re-investments in foreign subsidiaries are an equally frequent and unstudied phenomenon in international economics. However, previous empirical studies estimate a negative effect of distance. Our framework sets the theoretical ground for this finding and extends gravity's reach within FDI.

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Year of publication:	2015-03-22
Authors:	Paniagua, Jordi
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 35.2015, 1, p. 627-632
Publisher:	AccessEcon
Subject:	Foreign Direct Investment \| FDI \| Re-investment \| Gravity Equation

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Extent:	application/pdf
Type of publication:	Article
Classification:	F0 - International Economics. General ; F2 - International Factor Movements and International Business
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011207120