Arbeitspapier
Spatial effects of foreign direct investment in US states
This paper estimates the aggregate productivity effects of Marshallian externalities generated by foreign direct investments (FDI) in the US. In contrast to earlier work, this paper puts special emphasis on controlling for Marshallian externalities and other intra- and inter-regional spillovers generated by domestic firms. The productivity effects of these externalities may, if not accounted for appropriately, be falsely attributed to FDI. This paper also deals with the potential endogeneity of FDI and the presence of spatial lags by employing a system generalized method of moments (GMM) estimator. We use a regional production function framework that models Marshallian externalities and other intra- and inter-regional spillovers explicitly as determinants of total factor productivity, and tests several empirical specifications of this model, using data for US states from 19772003. The results indicate that FDI does, in fact, generate positive externalities, while those from domestic firms are negative.
- Language
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Englisch
- Bibliographic citation
-
Series: Kiel Working Paper ; No. 1535
- Classification
-
Wirtschaft
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
International Investment; Long-term Capital Movements
Multinational Firms; International Business
- Subject
-
Foreign Direct Investment
US States
Spatial Econometrics
Marshallian Externalities
Direktinvestition
Produktivität
Externer Effekt
Spillover-Effekt
Raumwirtschaftstheorie
Produktionsfunktion
Schätzung
Teilstaat
USA
- Event
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Geistige Schöpfung
- (who)
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Bode, Eckhardt
Nunnenkamp, Peter
Waldkirch, Andreas
- Event
-
Veröffentlichung
- (who)
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Kiel Institute for the World Economy (IfW)
- (where)
-
Kiel
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bode, Eckhardt
- Nunnenkamp, Peter
- Waldkirch, Andreas
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2009
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