How Far Away is an Intangible? Services FDI and Distance

University College Dublin Working Paper No. 11/20

27 Pages Posted: 1 Oct 2011

See all articles by Amélie Guillin

Amélie Guillin

Paris School of Economics (PSE); Johannes Kepler University Linz

Ronald B. Davies

University College Dublin (UCD)

Multiple version iconThere are 2 versions of this paper

Date Written: January 30, 2011

Abstract

Foreign direct investment (FDI) in services has grown significantly in recent years. Evidence of spatial relationships in FDI decisions have been provided for goods manufacturing by utilizing physical distance-based measures of trade costs. This paper investigates spatial interactions for services FDI using several distance measures, including physical distance, genetic distance, and transport time. Across different measures of distance, the traditional determinants of outbound FDI activity remain valid for services. We also find spatial interdependence for services FDI that is generally supportive of complex vertical motivations.

Keywords: Foreign direct investment, Services, Spatial econometric techniques

JEL Classification: F21, F23

Suggested Citation

Guillin, Amélie and Davies, Ronald B., How Far Away is an Intangible? Services FDI and Distance (January 30, 2011). University College Dublin Working Paper No. 11/20, Available at SSRN: https://ssrn.com/abstract=1936027 or http://dx.doi.org/10.2139/ssrn.1936027

Amélie Guillin (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Johannes Kepler University Linz ( email )

Altenbergerstr. 69
A-4040 Linz, Uper Austria 4040
Austria

HOME PAGE: http://www.econ.jku.at/

Ronald B. Davies

University College Dublin (UCD) ( email )

Belfield
Belfield, Dublin 4 4
Ireland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
30
Abstract Views
768
PlumX Metrics