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Jordi Paniagua
''A gravity model for foreign re-investment''
( 2015, Vol. 35 No.1 )
This paper broadens the scope of Foreign Direct Investment (FDI) models by deriving a gravity equation for foreign re-investment. Re-investments in foreign subsidiaries are an equally frequent and unstudied phenomenon in international economics. However, previous empirical studies estimate a negative effect of distance. Our framework sets the theoretical ground for this finding and extends gravity's reach within FDI.
Keywords: Foreign Direct Investment, FDI, Re-investment, Gravity Equation
F2 - International Factor Movements and International Business: General
Manuscript Received : Sep 23 2014 Manuscript Accepted : Mar 22 2015

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