Horizontal and Vertical FDI: a comparative analysis of technological determinants

Franco, Chiara (2010) Horizontal and Vertical FDI: a comparative analysis of technological determinants. Bologna: Dipartimento di Scienze economiche DSE, p. 26. DOI 10.6092/unibo/amsacta/4529. In: Quaderni - Working Paper DSE (713). ISSN 2282-6483.
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Abstract

The study analyzes the role played by technological determinants, using the approach of National System of Innovation (NSI), in enhancing or hampering Foreign Direct Investments (FDI) with different motivations, namely horizontal and vertical FDI. The empirical analysis is carried out using data relative to the final destination of sales of US foreign subsidiaries in 42 host countries grouped according to income criteria. A three step empirical strategy is employed: first, we estimate a benchmark model finding that technological determinants exert a greater in influence in high income countries especially for vertical FDI. Secondly, applying a dynamic panel data approach we take into account that agglomeration economies may play a role as well as other FDI determinants. Finally, we are able to further disentangle the destination of sales according to whether they are directed towards other foreign affiliates or to unaffiliated persons recognizing that they are affected by different determinants.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Franco, Chiara
Keywords
Horizontal FDI, Vertical FDI, FDI Determinants, National System of Innovation
Subjects
ISSN
2282-6483
DOI
Deposit date
04 Feb 2016 08:58
Last modified
04 Feb 2016 08:58
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