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US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?

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  • Kemegue, Francis
  • Mohan, Ramesh

Abstract

This paper investigates the possibility of interdependence between flows of US FDI to the ASEAN region. The study incorporates information asymmetry into an FDI model to examine the influence of geographic neighbors on new flows of FDI from the United States. Spillovers are modeled using the cost structure of a multinational investing in a region where US firms are already present. The results show that there are negative spillovers of US FDI in the ASEAN region affecting mostly the non-manufacturing sector.

Suggested Citation

  • Kemegue, Francis & Mohan, Ramesh, 2007. "US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?," MPRA Paper 5988, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5988
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    Cited by:

    1. Sánchez-Martín, Miguel Eduardo & de Arce, Rafael & Escribano, Gonzalo, 2014. "Do changes in the rules of the game affect FDI flows in Latin America? A look at the macroeconomic, institutional and regional integration determinants of FDI," European Journal of Political Economy, Elsevier, vol. 34(C), pages 279-299.
    2. Rogers, Cynthia L. & Wu, Chen, 2012. "Employment by foreign firms in the U.S.: Do state incentives matter?," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 664-680.
    3. Kemegue, F. & Mohan, R., 2009. "US FDI flows to ASEAN-5: Do Geographic Neighbors Matter?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(1).

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    More about this item

    Keywords

    Foreign Direct Investment; Spillovers; ASEAN;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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