Quotation Badinger, Harald, Egger, Peter. 2017. Spacey Parents and Spacey Hosts in Foreign Direct Investment. Economica, 84 (335), 480-497.




Shocks on FDI of some parent country in a host affect the same parent's FDI in other hosts. Shocks on a parent's FDI in some host affect other parents' FDI in the same host. In general equilibrium, shocks on FDI between any country pair will affect all country pairs' FDI. Using cross-sectional data on FDI among 22 OECD countries in 2000, we use a spatial estimation framework to allow for all three modes of interdependence simultaneously, thereby distinguishing between market-size-related and remainder interdependence. Our results highlight the complexity of multinational enterprises' investment strategies and the interconnectedness of the world investment system.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Economica
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-B, VW-B, WH-B
Language English
Title Spacey Parents and Spacey Hosts in Foreign Direct Investment
Volume 84
Number 335
Year 2017
Page from 480
Page to 497
Reviewed? Y
DOI http://dx.doi.org/10.1111/ecca.12177
Open Access N


Badinger, Harald (Details)
Egger, Peter (ETH Zürich, Switzerland)
Department of Economics (Badinger) (Details)
Research Institute for European Affairs FI (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5115 European integration (Details)
5323 Econometrics (Details)
5335 Political economic theory (Details)
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