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A gravity model for foreign re-investment

Author

Listed:
  • Jordi Paniagua

    (Catholic University of Valencia)

Abstract

This paper broadens the scope of Foreign Direct Investment (FDI) models by deriving a gravity equation for foreign re-investment. Re-investments in foreign subsidiaries are an equally frequent and unstudied phenomenon in international economics. However, previous empirical studies estimate a negative effect of distance. Our framework sets the theoretical ground for this finding and extends gravity's reach within FDI.

Suggested Citation

  • Jordi Paniagua, 2015. "A gravity model for foreign re-investment," Economics Bulletin, AccessEcon, vol. 35(1), pages 627-632.
    • Handle: RePEc:ebl:ecbull:eb-14-00788
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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P66.pdf
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    References listed on IDEAS

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    8. Salvador Gil-Pareja & Rafael-Llorca Vivero & Jordi Paniagua, 2013. "The effect of the great recession on foreign direct investment: global empirical evidence with a gravity approach," Applied Economics Letters, Taylor & Francis Journals, vol. 20(13), pages 1244-1248, September.
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    Cited by:

    1. Sayef Bakari & Sofien Tiba, 2019. "The Impact of Trade Openness, Foreign Direct Investment and Domestic Investment on Economic Growth: New Evidence from Asian Developing Countries," Economic Research Guardian, Weissberg Publishing, vol. 9(1), pages 46-54, June.
    2. Salvador Gil-Pareja & Rafael Llorca-Vivero & Jordi Paniagua, 2021. "Headquarters intangible capital and FDI," Working Papers 2107, Department of Applied Economics II, Universidad de Valencia.
    3. Paniagua, Jordi & Korzynski, Pawel & Mas-Tur, Alicia, 2017. "Crossing borders with social media: Online social networks and FDI," European Management Journal, Elsevier, vol. 35(3), pages 314-326.
    4. Bakari, Sayef, 2021. "Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods," MPRA Paper 108785, University Library of Munich, Germany.
    5. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2016. "Homeward bound FDI: Are migrants a bridge over troubled finance?," Economic Modelling, Elsevier, vol. 58(C), pages 454-465.

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    More about this item

    Keywords

    Foreign Direct Investment; FDI; Re-investment; Gravity Equation;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F2 - International Economics - - International Factor Movements and International Business

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