Why Does FDI Go Where it Goes? New Evidence from the Transition Economies

By Yuko Kinoshita, Nauro F. Campos. Social Science Research Network, 2003

662 citations recorded by the source corpus.

This Paper examines the importance of agglomeration economies and institutions vis-a-vis initial conditions and factor endowments in explaining the locational choice of foreign investors. Using a unique panel data set for 25 transition economies between 1990-98, we find that the main determinants are institutions, agglomeration and trade openness. We find important differences between the Eastern European and Baltic countries, on the one hand, and the former Soviet Union countries on the other: in the latter group, natural resources and infrastructure matter, while agglomeration matters only for the former group.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a91d65f45b20612b9db12ea8bbb5ab3357b67c58

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Strategy and Management

Citations in the corpus

Belt and road initiative and Chinese firms' outward foreign direct investment (2019, positive): “Second, Ln(GDPpc) , the recipient country's GDP per capita in current USD (in logs), is an indicator of market opportunities (Lipsey, 1999; Kinoshita and Campos, 2003).”
Foreign Direct Investment in Southeastern Europe: How (and How Much) Can Policies Help? (2005, background): “Some studies find agglomeration and herding to be important (Barrel and Pain, 1999; Campos and Kinoshita, 2003), but further research is needed to separate spurious from real correlation.”
Convergence of Accounting Standards and Foreign Direct Investment (2014, background): “Using a sample of transition economies, Campos and Kinoshita (2003) find that countries with better legal systems attract more FDI.”
Main Determinants of Foreign Direct Investment in the Southeast European Countries (2006, neutral): “5 See, for example, Campos and Kinoshita (2003), who study the CEEC.”
Foreign Direct Investment in South Asia: Policy, Trends, Impact and Determinants (2006, background): “Mello (1997) and Kokko (1996) find a negative relationship between FDI and total factor productivity.”
The effects of transition and political instability on foreign direct investment inflows: Central Europe and the Balkans (2006, neutral): “13 Campos and Kinoshita (2003) find natural resource endowments to be an important driver of FDI flows to Russia but not to East Europe.”