Technology Sourcing and FDI in the EC: An Empirical Evaluation
Posted: 21 Jul 2016
Date Written: May 23, 1995
This paper presents an econometric analysis of foreign direct investment flows in the four large countries of the EC, at the sectoral level and for the period 1984-89. We find that technological sourcing might be an important motive behind investment flows originating in the US and Japan but not behind intra-EC flows. Besides, we observe that "tariff jumping" may be an additional motivation behind Japanese and US investments and that all investments flows responded positively to the prospective of the internal market.
Keywords: Foreign direct investment, Technology sourcing
JEL Classification: F23, L10, 03
Suggested Citation: Suggested Citation