This paper investigates the impact of communication cost on the FDI activities of multinational corporations (MNCs). First, we provide a theoretical foundation for a gravity-type FDI model, which shows that physical distance and communication technology are important determinants of FDI...

This dissertation studies how the evolution of information technology could facilitate bilateral FDI activities, the channels for international R&D spillovers, and which exchange rates matter for FDI.Applying an IT-augmented gravity specification to bilateral FDI data from 1980 to 1997, the...