Vertical Specialization and New Determinants of FDI: Evidence from South and East Asia |
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| Authors: | Klimis Vogiatzoglou |
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| Institution: | 1. Technology Management, Economics, &2. Policy Program (TEMEP) College of Engineering , Seoul National University , Seoul, Korea;3. Research Fellow , Institute of International Economic Relations , Athens, Greece vogiatzoglou@snu.ac.kr |
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| Abstract: | Abstract By estimating a dynamic panel-gravity model of bilateral foreign direcr investment (FDI), this article investigates the location determinants of inward FDI in South and East Asia and assesses their short-run and long-run effects. The econometric results highlight the importance of the vertical specialization-, trade-, and international integration-related location factors. The gravity-specific variables are also found to be significant location determinants, whilst some of the traditional determinants are found to have either a weak or statistically insignificant effect (except host-market size) on inward FDI in South and East Asia. |
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| Keywords: | Foreign direct investment (FDI) vertical specialization links location determinants South & East Asia international economic integration |
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