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The Knowledge‐Capital Model Of Fdi: A Time Varying Coefficients Approach

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  • Petr Mariel
  • Susan Orbe
  • Carlos Rodríguez

Abstract

The present article reexamines some of the issues regarding the Knowledge‐Capital Model that encompasses both horizontal and vertical Foreign Direct Investment. The empirical support for this model is however mixed. This article proposes a new way of estimating coefficients by allowing them to vary over time. The estimation results obtained using data from 30 OECD countries for the period from 1982 to 2003 confirm that these coefficients cannot be considered as constant over time and that the vertical component of the Knowledge‐Capital Model is relevant.

Suggested Citation

  • Petr Mariel & Susan Orbe & Carlos Rodríguez, 2009. "The Knowledge‐Capital Model Of Fdi: A Time Varying Coefficients Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(2), pages 196-212, May.
    • Handle: RePEc:bla:scotjp:v:56:y:2009:i:2:p:196-212
    DOI: 10.1111/j.1467-9485.2009.00480.x
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    References listed on IDEAS

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    Cited by:

    1. Kox, Henk L.M., 2022. "Testing the knowledge-capital model of foreign direct investment: New evidence," MPRA Paper 114177, University Library of Munich, Germany.
    2. Kox, Henk L.M., 2022. "Revisiting the knowledge-capital model of foreign direct investment: New multi-country evidence," MPRA Paper 114559, University Library of Munich, Germany, revised 14 Sep 2022.
    3. Adolfo Maza & Paula Gutiérrez-Portilla, 2022. "Outward FDI and exports relation: A heterogeneous panel approach dealing with cross-sectional dependence," International Economics, CEPII research center, issue 170, pages 174-189.
    4. Kox, Henk L.M., 2023. "Testing an extended knowledge-capital model of foreign direct investment," MPRA Paper 117266, University Library of Munich, Germany.
    5. Nguyen, Anh T.N. & Haug, Alfred A. & Owen, P. Dorian & Genç, Murat, 2020. "What drives bilateral foreign direct investment among Asian economies?," Economic Modelling, Elsevier, vol. 93(C), pages 125-141.
    6. Chellaraj,Gnanaraj & Mattoo,Aaditya & Chellaraj,Gnanaraj & Mattoo,Aaditya, 2015. "Can the knowledge capital model explain foreign investment in services ? the case of Singapore," Policy Research Working Paper Series 7186, The World Bank.
    7. Kox, Henk L.M., 2022. "Linking the knowledge-capital model of foreign direct investment with national knowledge systems," EconStor Preprints 266495, ZBW - Leibniz Information Centre for Economics.
    8. Stack, Marie M. & Ravishankar, Geetha & Pentecost, Eric, 2017. "Foreign direct investment in the eastern European countries: Determinants and performance," Structural Change and Economic Dynamics, Elsevier, vol. 41(C), pages 86-97.
    9. Lin, Faqin, 2013. "Are distance effects really a puzzle?," Economic Modelling, Elsevier, vol. 31(C), pages 684-689.
    10. Viktor Hultgren & Petr Mariel & Carlos Rodríguez González, 2011. "Structural Breaks and Spatial Linkages in FDI: Further Evidence in OECD Countries," Open Economies Review, Springer, vol. 22(5), pages 897-915, November.

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