IDEAS home Printed from https://ideas.repec.org/p/hhs/nhheco/2013_003.html
   My bibliography  Save this paper

Guided through the `Red tape'? Information sharing and foreign direct investment

Author

Listed:
  • Balsvik, Ragnhild

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Skaldebø, Linde Tøndel

    (Chr. Michelsen Institute)

Abstract

What drives the observed tendency of new FDI, other things equal, to be attracted to locations where many other foreign investors are located? One explanation in the literature on FDI location is that expected bene ts from agglomeration externalities make rms want to locate in agglomerated regions. Alternatively, potential investors get information about conditions in a host from rms in their own business network that already have experience from that country. We study how Norwegian FDI location choice depends on previous Norwegian presence, using information about institutional quality to separate the impact of information sharing from agglomeration externalities. The impact of previous Norwegian investors is larger in countries with low institutional quality. We interpret this as consistent with the presence of information sharing among Norwegian investors.

Suggested Citation

  • Balsvik, Ragnhild & Skaldebø, Linde Tøndel, 2013. "Guided through the `Red tape'? Information sharing and foreign direct investment," Discussion Paper Series in Economics 3/2013, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2013_003
    as

    Download full text from publisher

    File URL: http://www.nhh.no/Files/Filer/institutter/sam/Discussion%20papers/2013/03.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    FDI; location choice; networks; information; agglomeration.;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:nhheco:2013_003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Karen Reed-Larsen (email available below). General contact details of provider: https://edirc.repec.org/data/sonhhno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.