Melting Pot or Salad Bowl: Some Evidence from U.S. Investments Abroad
49 Pages Posted: 12 Aug 2007
There are 2 versions of this paper
Melting Pot or Salad Bowl: Some Evidence from U.S. Investments Abroad
Abstract
We estimate the number of immigrants in the United States classified by their country of origin from census data in 1970, 1980, 1990 and 2000. We find, both in cross-sectional tests and in panel data tests, that the size of the immigrant group from a country living in the U.S. is positively correlated with U.S. investments in that country. This national origin bias is strong for direct (FDI) and modest for indirect (equity holdings) investments. The results continue to hold even after controlling for the "fundamentals" hypothesized to affect foreign investments. The other economic geography variables of a country - physical distance from the U.S., race, language and religion - do not seem to affect U.S. investments in that country.
Keywords: Economic geography, Foreign direct investment, Foreign stockholdings, Home bias, Immigration
JEL Classification: G11, G15
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Why is There a Home Bias? An Analysis of Foreign Portfolio Equity Ownership in Japan
By Jun-koo Kang and René M. Stulz
-
By Gur Huberman
-
Home Bias and the High Turnover
By Linda L. Tesar and Ingrid M. Werner
-
The Determinants of Cross-Border Equity Flows
By Richard Portes and Hélène Rey
-
Corporate Governance and the Home Bias
By Lee Pinkowitz, Rohan Williamson, ...
-
The Determinants of Cross-Border Equity Flows
By Richard Portes and Hélène Rey
-
The Portfolio Flows of International Investors, I
By Kenneth Froot, Paul G.j. O'connell, ...
-
The Information Content of International Portfolio Flows
By Kenneth Froot and Tarun Ramadorai
-
The Information Content of International Portfolio Flows
By Kenneth Froot and Tarun Ramadorai