University of Sussex
Browse

File(s) not publicly available

The FDI location decision: modelling conceptions of distance

journal contribution
posted on 2023-06-08, 23:44 authored by Graham David Cookson, Frederic Blanc-Brude, Piesse Piesse, Roger StrangeRoger Strange
We investigate how different conceptions of distance impact upon one of the fundamental decisions made by foreign investors, the choice of foreign direct investment (FDI) location within the selected host country. Most the extant literature treats alternative locations as distinct places, and implicitly assumes that the distances between these alternative locations have no impact upon the likelihood of FDI location. However, the boundaries between these locations are often quite arbitrary and defined by administrative fiat rather than political-economic reality, and proximate locations may well impact significantly upon each other's attractiveness to foreign investors. This results in a situation of spatial dependence which, if ignored, can give raise to various estimation and inference problems. The contribution of this paper is to investigate different specifications of this spatial dependence linked to various geographical, economic and administrative measures of distance.

History

Publication status

  • Published

Journal

Academy of Management Proceedings

ISSN

0065-0668

Publisher

Academy of Management

Volume

1

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2015-12-11

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC