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| Jordi Paniagua |
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| ''A gravity model for foreign re-investment'' |
| ( 2015, Vol. 35 No.1 ) |
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| 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. |
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| Keywords: Foreign Direct Investment, FDI, Re-investment, Gravity Equation |
JEL:
F2 - International Factor Movements and International Business: General |
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| Manuscript Received : Sep 23 2014 | | Manuscript Accepted : Mar 22 2015 |
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