Does Financial Remoteness Affect Foreign Direct Investment?

Auteurs-es

  • Michael Machokoto The Faculty of Business and Law, The University of Northampton, UK
  • Lanre Kassim The World Bank, Chad Office, Chad

DOI :

https://doi.org/10.15353/rea.v11i2.1626

Résumé

We examine the effect of financial remoteness on foreign direct investment (FDI) using a sample of 173 countries over the period 1970-2015. Our results show that financial remoteness has a significant negative effect on FDI, which suggests that proximity to major financial centres is a key factor in deciding on foreign investments. Our results are robust to alternative measures of financial remoteness and controlling for other determinants of FDI from the literature.

Téléchargements

Publié-e

2019-12-07

Numéro

Vol. 11 No. 2 (2019)

Rubrique

Articles

Licence

The Review of Economic Analysis is committed to the open exchange of ideas and information. 

Unlike traditional print journals which require the author to relinquish copyright to the publisher, The Review of Economic Analysis requires that authors release their work under Creative Commons Attribution Non-Commercial license. This license allows anyone to copy, distribute and transmit the work provided the use is non-commercial and appropriate attribution is given. 

A 'human-readable' summary of the licence is here and the full legal text is here.