Understanding bilateral FDI flows in developing Asia |
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| Authors: | Rabin Hattari Ramkishen S Rajan |
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| Institution: | South Asia Poverty Reduction and Economic Management Unit, The World Bank Group, Washington DC and George Mason University;
George Mason University, and Institute of South Asian Studies, National University of Singapore |
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| Abstract: | Unlike trade flows, there has been little to no detailed examination of foreign direct investment (FDI) flows between Asian economies. This paper uses bilateral FDI flows data to investigate trends in intra-Asian FDI flows over the period 1990–2005. It employs an augmented gravity model to identify the main determinants of intra-Asian FDI flows. Possible drivers of FDI flows, including transactional and informational distance (proxied by distance), real sector variables, financial variables and quality of institutions are examined. |
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