Impact of aggregation on measuring FDI spillovers: a Monte Carlo appraisal

Using a Monte Carlo experiment, this paper explores the impact of data aggregation on measuring the FDI spillovers. We find the aggregation significantly covers up the spillovers, which is further exacerbated by the correlation between the foreign presence and the explanatory variable at the disaggregate level. However, if the FDI at the level of aggregation is proportional to its domestic counterparts, then the aggregation does not affect the measurement of spillovers.

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Year of publication:	2009-05
Authors:	Sun, Sizhong
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Aggregation \| Spillovers \| FDI

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D20 - Production and Organizations. General ; C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005034599