European Exports and Outward Foreign Direct Investment. A Dynamic Panel Data Approach

Arbeitspapier

This paper implements a panel data approach for studying the determinants of and relationships between bilateral economic activities in terms of both trade and foreign direct investment between the EU member states. The familiar equation for testing the determinants of bilateral exports is reformulated to reflect recent theoretical work. It is specified as a dynamic panel data model designed to answer questions about their relationship according to changes in different exogenous determinants. Exports and stocks of outward FDI are found to be substitutes with respect to changes in transport costs and complements with respect to most of the other determinants.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIFO Working Papers ; No. 129

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Empirical Studies of Trade ; Economic Integration ; Multinational Firms; International Business
• Subject: gravity equation ; panel econometrics ; EU-Binnenhandel ; Export ; Auslandsinvestition ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Egger, Peter
• Event: Veröffentlichung
• (who): Austrian Institute of Economic Research (WIFO)
• (where): Vienna
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/128679
• Last update: 10.03.2025, 11:42 AM CET