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    Foreign direct investment and exports of services

    van Welsum, D. (2003) Foreign direct investment and exports of services. Working Paper. Birkbeck, University of London, London, UK.

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    The paper augments a standard export demand function in order to examine the impact of outward foreign direct investment (FDI) on United States export performance in services. It uses several panel data estimators: mean group, pseudo pooled mean group, and one-way and two-way fixed effects. It finds that the results are very sensitive to the exact empirical specification. While FDI is found to have a negative effect overall, for given levels of world demand and relative prices, this hides the presence of heterogeneity among different categories of services. Allowing for heterogeneity, it is possible to identify some arms-length categories of services in which exports are reduced as a result of higher levels of outward investment. In contrast, other types of service exports, notably receipts of royalties and affiliated services, are raised as a result of FDI.


    Item Type: Monograph (Working Paper)
    Additional Information: BWPEF 0305
    Keyword(s) / Subject(s): foreign direct investment, exports of services, panel data estimation
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Administrator
    Date Deposited: 09 Apr 2019 13:20
    Last Modified: 02 Aug 2023 17:50


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