EEC tariffs and U.S. direct investment

Schmitz, Andrew; Bieri, Jurg

doi:10.1016/0014-2921(72)90007-4

Cited by 72 publications

(39 citation statements)

References 11 publications

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“…They used pooled data on the United States manufacturing foreign direct investment in seven European economies over the period [1958][1959][1960][1961][1962], and strongly supported the hypothesized dependency of the level of foreign direct investment on the level of national income and the host country. Schmitz & Bieri (1972) and Lunn (1980) also found a statistically significant effect of market size in determining inward flows of the US foreign direct investment in the EEC, while Kravis & Lipsey (1982) verified that the host country's market size had a decisive influence on the location decision by the US multinationals in the 1960s. By applying econometric analysis of data on the US manufacturing investment in 24 countries in the period 1954-1975, Nigh (1985 found that the host country GDP per capita was an important factor in determining the inflows of foreign direct investment.…”

Section: Literature Reviewmentioning

confidence: 94%

Market Size as a Determinant of the Foreign Direct Investment Inflows in the Western Balkans Countries

2017

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Abstract. Numerous empirical studies confirm that market size is one of the key determinants of foreign direct investment inflows, particularly market-oriented projects of foreign direct investment. Basically, the dominant view is that a larger market of the host country attracts a greater quantum of foreign direct investment. This paper examines the influence of market size, as well as the impact of market growth, trade openness, and population size on the foreign direct investment inflows into the six countries of the Western Balkans region in the period [2007][2008][2009][2010][2011][2012][2013][2014][2015]

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Section: Literature Reviewmentioning

confidence: 94%

Market Size as a Determinant of the Foreign Direct Investment Inflows in the Western Balkans Countries

2017

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“…Quite a number of studies like (Kravis and Lipsey, 1982 [36]; Culem, 1988 [37], and Edwards, 1990 [38], Asiedu (2006) [32], Abbas and El Mosallamy (2016) [34] found a strong positive effect of openness on FDI flows. Schmitz and Bieeri (1972) [39] found a weak and significant link between the two variables. The most recent view on the openness-FDI effect probably comes from Jordaan (2004) [40] who asserted that the impact of openness on FDI strongly depends on the type of investment and further contended that when investments are market-seeking, trade restrictions, and, for that matter, less openness, can have a positive impact on FDI because the foreign firms that are being restricted from importing into host countries can decide to set up subsidiaries in the host countries.…”

Section: Literature Reviewmentioning

confidence: 97%

Financial Reforms and Determinants of FDI: Evidence from Landlocked Countries in Sub-Saharan Africa

et al. 2017

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The recognition of Foreign Direct Investment (FDI) as a source of funding to foster economic development in both developed and developing countries has been in ascendancy. The prime purpose of this study is to empirically investigate the determinants of FDI for the "landlocked countries" in Sub-Saharan Africa over the period 1995-2013. By employing panel data analysis, the result of the study revealed that domestic investment, trade (openness), human capital, political constraint, natural resource endowment and the market size (with the GDP growth as proxy) as having positive impact on determining FDI flow into the sample countries with only the countries' tax policies seen otherwise. Our study not only contributes to existing literature on FDI determinants by investigating landlocked countries of Sub-Saharan Africa (SSA) for the first time but also includes natural resources that the landlocked countries are endowed with, tax policies and political constraints in such countries for the stipulated period.

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“…However, there are studies that show negative or week association between the variables. For example, Wheeler and Mody (1992) and Schmitz and Bieri (1972) found week link between trade openness and FDI. Yih Yun et al (2000) reported negative relationship between the two variables.…”

Section: Opennessmentioning

confidence: 97%

“…Attractiveness of the host country's market, generally proxied by the country's GDP or per capita GDP, has been widely accepted in the empirical literature as a significant determinant of FDI flows (see Wafure and Nurudeen 2010;Artige and Nicolini 2006;Masayuki and Razafimahefa 2005;Jordaan 2004;Nonnenberg and Cardoso de Mendonça 2004;Chakrabarti 2001;Resmini 2000;Tsai 1994;Culem 1988;Schneider and Frey 1985;Schmitz and Bieri 1972;Bandera and White 1968 etc.). According to this hypothesis, larger size of the host country's market is associated with higher inflows of FDI as large markets are necessary for exploiting natural resources and economies of scale.…”

Section: Market Sizementioning

confidence: 99%

The Determinants of Foreign Direct Investment: An Analytical Survey

Sinha

Sen

2016

International Trade and International Finance

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Investments undertaken by multinational corporations (MNCs) can be regional or global. In the recent years, there has been spectacular growth in the flow of global capital in developing economies accompanied by a significant increase in capital outflows from the Global South. Though outward investment by emerging economies is not a new phenomenon, the past couple of decades have witnessed a surge in the quantity and also qualitative transformation in the pattern of their investment. The most important region among developing countries for foreign direct investment outflows is Asia, though there has been an increase in other developing regions as well. In this chapter, we present an analytical survey of the literature around the various issues that determine the location decision of global capital and also investigate the current changes in trends in these investment flows. We also explain the motivating factors behind the location decisions of southern multinationals, an area relatively new in the literature on foreign direct investment.

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EEC tariffs and U.S. direct investment

Cited by 72 publications

References 11 publications

Market Size as a Determinant of the Foreign Direct Investment Inflows in the Western Balkans Countries

Market Size as a Determinant of the Foreign Direct Investment Inflows in the Western Balkans Countries

Financial Reforms and Determinants of FDI: Evidence from Landlocked Countries in Sub-Saharan Africa

The Determinants of Foreign Direct Investment: An Analytical Survey

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